Forensic Analysis · Communication Services / Telecom · as of Aug 11, 2026
Roku, Inc (ROKU)
A forensic read on Roku, Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
14.7
Distress distance
Clean
Earnings quality
4
Forensic signals
110.7
P / E (ttm)
3.3%
ROE
$22.6B
Market cap
15.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Roku, Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 14.7, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+105.2%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +105.2% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by payables paid down 42% against +15% in cost of sales and receivables up +8% against revenue +15%. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 56% of net operating assets, diverging from the balance-sheet accrual read.
-0.3%
FY2025
Return on invested capital.Return on invested capital is -0.3% in the latest fiscal year and rising from -29% — well below its ~8% cost of capital, so reinvested dollars may be destroying value, not building it.
+3.1%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +10% over the last 3 years to FY2025 (+3.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~9%.
7% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 7% of revenue and 74% of free cash flow in FY2025 — about $2.35 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 3.1% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
Key fundamentals
Latest Revenue$4.74B
Revenue Growth YoY+15.2%
Revenue CAGR (3yr)+14.9%
Net Margin1.9%
Free Cash Flow$478.4M
Return on Equity3.3%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Roku, Inc's actual 10-K/10-Q/8-K filings?