ROKU – BUY – Say Howdy to Upside Scenarios: Raising Target On Runway for Early-Stage Initiatives

Research evidence excerpt

ROKU – BUY – Say Howdy to Upside Scenarios: Raising Target On Runway for Early-Stage Initiatives

June 9, 2026

Michael Morris, CFA michael.morris@guggenheimpartners.com ROKU – BUY – Say Howdy to Upside Scenarios:

804 253 8025 Raising Target On Runway for Early-Stage Initiatives

Charles Wilber

charles.wilber@guggenheimpartners.com

804 335 3977 Key Message: We believe consensus estimates implying 2026 as the peak Platform

revenue growth year underappreciate the runway of multiple initiatives that remain in Taylor Manley

taylor.manley@guggenheimpartners.com early stages of contribution. Recent management commentary reinforces our conviction

804 253 1336 that Roku's monetization engine is still ramping across advertising and subscriptions,

with several drivers yet to reach full potential. We highlight three areas where we Grayson Glenn see upside: 1) Penetration runway supported by structural advantages – Roku has grayson.glenn@guggenheimpartners.com

804 253 8053 achieved 100mm streaming households, yet the company's purpose-built OS, which

requires significantly less memory than competing platforms, is creating incremental

OEM partnership opportunities as memory costs have risen 7-15x. Management noted

OEMs are proactively seeking expanded Roku partnerships due to this BOM advantage.

ROKU BUY Internationally,significant monetizationMexico hasrunway;near-U.S.2) Advertisingscale but 4xgrowthlowervectorsARPU –thanthe Canada,new homesuggestingscreen is

Roku, Inc. only ~20% rolled out with biddable in-tile ad units planned, Amazon DSP is "not yet fully

Sector: Media & Internet ramped," DV360 integration is still building, and Ads Manager for SMBs addresses a ~

$600bn TAM. Political advertising, which was not material in 1Q, represents incremental