Replying to Avatar Pepe Maltese

Roku Q1 2025: Mispriced or Misunderstood?

Roku posted +109% EBITDA growth and +15.8% revenue in Q1 — beating most media and ad tech peers. Yet it still trades at <2x P/S.

Here's why this stock might be the most undervalued platform in CTV.

#Roku #AdTech #Earnings #CTV #TTD
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Pepe Maltese 8mo ago

Revenue growth is decelerating — from 22% in Q4 to 15.8% in Q1 — but margins are accelerating.

This isn’t just a “growth story” anymore. It’s a platform leverage story.

EBITDA growth:

Roku: +109%

TTD: +89%

NFLX, GOOGL, AMZN: all lower

#Stocks #Monetization #Valuation

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Pepe Maltese 8mo ago

Roku’s valuation disconnect is wild:

TTD trades at ~9.5x P/S

Roku trades at <2x P/S

Yet Roku is growing faster AND scaling EBITDA more efficiently.

This isn’t a hardware company anymore — it’s a CTV operating system with ad rails.

#Streaming #FCF #Roku

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Pepe Maltese 8mo ago

Bear case watch:

ARPU growth slowing (6–7%)

FCF down YoY

Monetization still lags engagement

If Roku can’t close that TRC-to-revenue gap, the multiple stays stuck.

But if it does — re-rating potential is huge.

#Investing #Compounders #TechStocks