Roku stock jumps to $125 on strong Q1 platform revenue growth and high-margin shift.

Roku, Inc. saw its stock price rise to $125 following a 28% year-over-year growth in platform revenues during Q1 2026. The company’s shift to high-margin platform revenue, now making up 90% of total revenue, led to a 165% increase in adjusted EBITDA. Management aims for $5.5 billion in revenue and $675 million in EBITDA by 2026, with free cash flow projected to reach $1 billion by 2028. Despite a higher valuation at 23.5x 2026 EV/EBITDA, Roku’s strong execution and growth prospects make it an attractive buy on dips.