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Roku Ends Three-Year Profit Slide with Ad Deals and Cost Cuts

Wall Street Journal US Business •
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Roku (ROKU) ended its three-year streak of losses with a return to profitability in its most recent quarter, driven by strategic investments in digital advertising and aggressive cost-cutting measures. The streaming video platform, which had struggled to turn a profit since 2021, reported earnings that surpassed market expectations, marking a significant turnaround for the company. Digital ad investments played a pivotal role in this shift, helping Roku capitalize on increased advertiser demand for its ad-supported streaming service. Cost reductions across operations also contributed to narrowing the gap between revenue and expenses, allowing the company to achieve its first profitable year since 2021. This development signals Roku's ability to adapt its business model in a competitive streaming landscape.