All right, we're gonna get started here. For important disclosures, please see the Morgan Stanley Research Disclosure website at morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. With that, I am very pleased to welcome Anthony Wood, Founder and CEO of Roku. Thank you so much for coming back to the conference.
Thanks. Thanks for having me. I appreciate it.
All right. You looked, you reported a couple of weeks ago, and you talked about a 2026 outlook that gave investors, I think, a little bit of a peek into what you see as a potential growth opportunity going forward. As we look out to this year, what do you think are the two or three biggest strategic priorities for you, for the company, and, you know, what do you think will be most different about your business if all goes well and you execute on your plans?
Yeah. You know, our priorities are really to focus on our main businesses. Our main businesses are advertising and subscriptions. Then I would say the third priority would be our home screen. I'll just talk a little bit about each of those. Advertising is doing really well for us. It's been a very positive business. It's growing nicely. You know, and in advertising, we're focused on being the most performant Connected TV platform, so continuing to invest in integrating generative AI throughout our platform to drive even more performance on our platform. Integrating with DSPs. A big strategy for us on the ad front is to integrate and deepen our integration with all major DSPs. You know, we did Trade Desk a couple of years ago.
We recently announced a relationship with Amazon that's working out well for us and them. Integrating with DSPs. You know, creating new businesses around advertising. We have a product we've launched recently called Roku Ads Manager, which is essentially a way, a self-serve platform that targets small and medium-sized businesses, which is a, you know, huge market, $600 billion market that are a set of advertisers don't traditionally advertise on, you know, on the big screen on TV. That's advertising. You know, that's a big area to continue to grow that business. Subscriptions is another big business for us. We have three kinds of subscriptions. We have direct-to-consumer, app-based subscriptions. We have what we call premium subscriptions, which is more of a wholesale type model, and that's growing extremely fast.
You know, we had our biggest premium subscription net add quarter last quarter ever. The third subscription business for us is own and operate subscriptions. We have three different streaming services we own and operate. Two of them are subscription businesses, Howdy and Frndly. You know, all in, we bill tens of millions of subscriptions a month, and that's, you know, that's also a business that's doing well for us. The third area that we're focused on is just getting better use out of our home screen. It's probably our most important asset, is the fact that when people turn on their TV to find something to watch, they start with the Roku home screen.
We have been testing a bunch of different variety or different alternatives to our home screen, working on a next generation home screen for a couple of years now, and those tests have been going really well. We're seeing, you know, we're seeing great results in terms of user sentiment, monetization, engagement, and we hope to roll out a new home screen. Well, we're gonna roll it out this year is the plan. Those are the three areas. I would say just if you look at results, you know, platform revenue was up 18% year-over-year last year, and our outlook for this year is also 18%. Last year was the first, you know, 2025 was a great year for us.
We were profitable last year. We're continuing to grow free cash flow. That's a big priority for us, is to continue to grow free cash flow. In fact, you know, we think we'll pass $1 billion in free cash flow in 2028, if not sooner. Those are our, I'd say those are our key priorities.
That's great. I wanna dive deeper into all of those. I think at a higher level, I wanna ask about AI. Obviously, this is a big topic across our entire conference circuit over the past few days. You've spoken two times even this year, about being a beneficiary of AI-generated content. I think about AI personally at an industry level as a contrast in my mind between the ability to really reduce the content production costs for many of your partners. I think you've spoken about that. On the other hand, potentially a risk that more empowered user-generated content takes greater share of monetization away from some of those partners. Can you maybe just talk about Roku's position in that framework and whether you see yourself being a beneficiary in either circumstance?
Yeah. I mean, AI, I mean, AI is a huge opportunity for us. I'm super excited about it. You know, it's certainly a massive tailwind. It's not disrupting our business. If you think about... One way to think about our business is, we are a platform for viewers to watch television. You know, our job as a platform is to drive engagement, then we monetize that engagement. That's our business in a nutshell. AI, across all aspects of that business model, is positive for us. For example, just taking content, for example, AI is gonna reduce the cost of content production. That'll drive more engagement. We monetize engagement.
That, you know, the high level, that's a great trend for us. If you look at our business segments, like advertising, for example, or business areas like advertising, you know, we are actively, I mean, it's always been based on AI, but we're actively integrating, you know, generative AI into our ad tech stack to drive higher performance and better outcomes for our advertisers. It's, you know, we're very focused on being the most performant ad platform, Connected TV ad platform, and AI is a big part of making that happen. In advertising, AI is creating, like I mentioned, Roku Ads Manager, which is focused on small and medium-sized businesses. That couldn't exist without AI.
You know, AI allows like a one-button click to create a high-quality professional video ad, which, you know, if you're a small business, you can't afford to pay someone to produce a video ad. AI produces high-quality video ads, and then AI is used in all the targeting and measurement for that technology stack. You know, that's a, and that's gonna be a large business for us, and that's entirely based on AI. Subscriptions, another big business for us, you know, we're integrating AI. AI is being used to improve the recommendations. You know, making our home screen more personalized, improving recommendations, that's driving more engagement, that's driving more subscription signups. Yeah, I mean, AI, I think, just generally is very positive for us.
On that first engagement point, to the extent that AI is empowering greater cost reduction and the ability for consumers to watch more content, do you think you're positioned to monetize that as successfully if we're kind of seeing share shift away from some of the more premium scripted players towards user-generated content as one example?
I mean, YouTube is the number one app on our platform. The Roku Channel's number two.
Yeah.
We monetize all the apps on our platform. Like just generally, more engagement is good for us. Lower cost content. I mean, The Roku Channel is free content, you know, lower cost is good for that business model.
Right.
Howdy, which is, you know, we'll, hopefully, we'll get to later, but that's a, you know, a new streaming service that's owned and operated, launched by Roku, and that is positioned in the market at $3 ad-free. You know, that's the kind of service that lower cost content, better quality content could really help. Yeah, I think lower cost, for our business model, lower cost content's gonna be good.
Makes sense. All right. Let's dive deeper into advertising as an opportunity. You know, CTV has come a long way in terms of migrating ad dollars from linear. I think there's still a gap between the engagement levels that we're seeing on streaming relative to the actual ad dollars that are moving over. In your view, what are some of the gating factors that might be potentially being unlocked over the next few years? How should we think about what really drives the pace of that further closing of that gap?
I think, you know, in terms of Connected TV advertising, number one, one of the primary drivers is just scale. You know, we have 90 million, well over 90 million, active households. You know, that's over half of... In the U.S. alone, over half of broadband households, like that's massive scale. That's a key driver of our ad business. Engagement is really very important. You know, by engagement, we're the number one by a wide margin, number one in the U.S., Canada, and Mexico, connected, you know, streaming platforms. Take The Roku Channel, you know, I mentioned before, it's the number two app on our platform.
It's just over 6% of all streaming hours in the U.S., is The Roku Channel. That's up from just over 4% a year ago. You know, it's growing nicely. That creates a lot of ad inventory. We have a lot of ad inventory. That's just The Roku Channel. I mean, we have ad inventory across our entire platform and across streaming apps on our platform, but also, of course, you know, in our UI, you know, proprietary ad units from on the home screen and, you know, home screen takeovers. A whole variety, and we're building out more ad units across our platform. Those are key drivers. You know, I would say, just we are incredibly focused on being the most performant Connected TV platform.
That's a big advantage. You know, I think all advertising, even television advertising, even brand advertising, is moving to more performance-based modes. That's a big focus of ours. I would say finally, just, you know, we make it easy for customers to buy ads however they wanna buy an ad. If an advertiser can buy through an insertion order, they can buy through a DSP, or they can use our self-serve platform. All of those things together are really driving strong growth in our ad business.
As we think about the fact that increasingly a lot more of, the larger scaled streaming players are moving into ad monetization, how do we think about Roku's moat from a defensive perspective in terms of still being that must-buy premium source of content? You've talked about the scale, and the performant nature of your business. Is that really kind of the biggest focus on being able to keep share of CTV as the overall industry kind of grows in dollars?
Yeah. I mean, we're generally growing faster than the CTV ad market as a whole, and it's because of our scale and performance and also proprietary ad units. You know, yeah, I mean, I really think like, as Roku's in over 1/2 of U.S. broadband households, that makes us a must-buy platform if you wanna reach, you know, at scale a lot of U.S. consumers. Then there's a massive industry refocusing around performance, and we've been working on that for years. That's a big driver. Then, you know, I guess also just, you know, we have ad products across the entire demand curve. Everything, you know, from high CPMs to low CPMs.
For example, you know, we've got proprietary ad units in our home screen, in our UI. You know, we have a sports zone, sports experience which you can sponsor. You know, you can take over the entire home screen and brand it for a weekend. Those kinds of ad units are in high demand, and they usually come bundled with other ad products. That's the driver of ad business. We, you know, we have a lot of first-party data that also is one of the factors that drives performance on our platform that, you know, that those are higher priced units and then, you know, all the way down to units that don't come with data, not a lot of signals, and those are much lower cost.
Being able to offer that entire range of price points is also a big advantage.
Gotcha. You mentioned the DSP partnerships at the beginning. Over the last few years, I think you've successfully partnered with all of them, or at least most of the major ones, including Amazon most recently.
Mm-hmm.
How should we think about how those relationships may change or deepen over time?
Well, we're continuing to add DSPs. I mean, we have all the major ones, but we're still adding DSPs. Also, measurement partners are important partners for us. You know, I think the deepening happens both by deeper technical integration, as well as potentially data, and then also, just business ties. You know, as we get experience working with the DSPs, we do, you know, we do sales calls together. We deepen our, you know, we deepen our business relationship as well as our technical relationships. Those are just relationships that we continue to deepen both on a technical and just the business relationship level.
On the data licensing piece of it, is that an opportunity that you see? I think that was a pretty integral part of the Amazon deal. Is that something that you are seeing the early signs of success from? Is there an opportunity to kind of look for opportunities to go bigger on that front?
Yep. Let me just take that in two parts. First of all, I don't, I don't think we've actually announced the exact details of the Amazon deal, but it, at least as far as I can, I don't believe there was any data exchange. I mean, it's, you know, The Trade Desk, we did the deal with The Trade Desk a couple years ago. That was a, you know, to support UU, UID. The Amazon deal is similar to that. You know, there is some identity matching, which is, which is kind of what you get with UID as well that we did for Amazon. But no, the way I think about our data is that our first-party data is extremely important asset, very valuable. We have a lot of data.
We primarily use it to drive our own business. Whether it's our ad business, you know, many, most, almost all of our ad targeting is influenced by our data. You know, so it's very integral to our ad business, but also it's integral to the personalization of the home screen, you know, recommendations and the personalization. All those things drive engagement. You know, like do we decide to recommend, you know, HBO Max or Apple TV +? You know, like, that helps maximize subscription sign-ups. You know, if a viewer is, like, more likely to watch ad content based on our data, we'll recommend ad-supported content and drive more ad revenue.
You know, data's used to drive our entire business, and that's the primary way we use our data, and that's how we use our data. You know, that said, I mean, we're always looking for ways to monetize our data more, but today that's how we do it.
Okay. Understood. On the Roku Ads Manager piece of the puzzle, you've highlighted, you know, a big opportunity from the SMB market. What are the gating factors in terms of driving greater adoption amongst that cohort in terms of educating them about the product and the value that you're providing and being able to drive incremental adoption? How big of an opportunity do you see this as in terms of a contribution to growth over the next few years?
Well, just to describe what Roku Ads Manager is, just again, just briefly, then I'll answer the question. Roku Ads Manager is a self-serve platform that allows advertisers, small and medium-sized businesses, performance advertisers, any advertiser, those are the targets, to go online and to, you know, upload their ad or create an ad then specify what target. What do they wanna target? Do they wanna target their ad? Do they wanna target a zip code? Do they wanna target pizza lovers? Do they wanna target auto, people who wanna buy cars? You know, then also then to put in how they wanna measure the outcome. Like, do they wanna measure, like, do they wanna measure website visits? Do they wanna measure sales?
You know, it's like this complete loop on targeting and measurement. It's also got APIs. We've just recently announced the Roku Ads API that allow advertisers to integrate directly with the Roku Ads Manager. You know, there's a lot of sources of demand for it. I mean, it's growing extremely well. We promote it. We have a sales team. You know, we have marketing, that's one way. We have a large marketing platform. Our TV is in a lot of households. There's just a lot of demand from, you know, those advertisers, they have, you know, many of them have wanted to advertise on TV but couldn't before.
Especially performance advertisers are looking, you know, many of them have capped out how successful they can be on the existing social media platforms, and they're looking for other platforms, or they're looking for diversification from those platforms. That's also driving demand. All that together is we're seeing good growth, like strong growth on that business and how big it can be. I mean, this is a $600 billion -a -year market. I mean, I'm excited because it's, you know, the traditional TV ad business is a big business. You know, that's depending on how you measure it, like $60 billion or $70 billion a year.
That's, you know, in the process of moving over to Connected TV, and that's driving growth for us, and I think we're growing faster than the market. That's all good. That's a lot smaller than $600 billion. You know, I think it's a. It's a good way to diversify out of that core advertising business, and it's also a big new opportunity, so...
Yeah. Another area that seems to be migrating more towards CTV is political ad spend.
Mm-hmm.
We have the midterms coming up. I think last cycle, you were a beneficiary and generated some pretty healthy revenues from political spending. Can you just talk about how Roku has positioned itself to maximize on the opportunity that's coming up? You know, what are you doing differently this time relative to last time?
Well, I had my one-on-one with our head of our media business yesterday. He was excited because in Texas there's gonna be a runoff, which means that there'll be more, you know, political ads in Texas. Like, you know, we have a lot of different vertical segments in our ad business. Political is one of them. It's a, it's a business that we're good at. Like, I would say, you know, the last cycle in 2024 was where we really started to take it seriously and get better at it. You know, we put in place a dedicated sales team for political. We started putting in the features and the product that you really need, that political advertisers need to do the kind of targeting that they wanna do.
You know, we're taking advantage of all those learnings, and we're building on that. It's, you know, it's a good business, and it's one of our verticals, and it's doing well.
What about sports? I think, you know, this is a big year for that with the Olympics and the World Cup coming front and center. How has Roku positioned itself to monetize on that front?
Yeah. There's a variety of ways we monetize sports. I would say we do it well. One of them is, we have a sports experience or an area in the UI where viewers can go to find sports content. One of the problems in the streaming world of sports is that it's highly fragmented. You know, the leagues have pieced up their rights, and they've sold them to all the different streaming services. Viewers have no idea, like, "How do I watch the game that I wanna watch? Where, what service is it on? What time is it on?" We have a sports experience where we solve that problem for them.
Like, you can go there, you can find out what games are on, you can see the scores, you can find out how to watch your team, when to watch your team. That's a popular part of our user experience. That drives engagement, you know, drives engagement in sports content that we monetize. You know, we monetize either through subscriptions or advertising. For example, you know, I think, I think in the last quarter, subscriptions-driven, sports-based subscriptions sign-ups coming from, originating from the sports experience were up 75%.
Mm-hmm.
That's a very popular way for viewers to discover sports-based content, and often they'll end up signing up from that experience. You know, we get paid for that. There's sponsorships in that as well. The sports experience is a key part of our monetization of sports. You know, for tentpole sports like the Winter Olympics, we did this, or for the upcoming World Cup, we'll build complete custom experiences, and we'll integrate them directly into our home screen. We'll work with the, you know, whoever has the rights for that, you know. In the case of the Winter Olympics, it's NBC. We'll work with them directly, build an experience with them, integrate into our home screen. Viewers love it.
Like, they get, you know, they get a great experience around the Olympics. You know, in this case, NBC really likes it. It drives more viewing of the Olympics. We monetize that as well.
Yeah. I think we do need an aggregator for all the fragmentation that's happening in that space. Shifting a little bit more towards the platform and the subscription business. You talked about home screen being a prominent third, you know, strategic focus of yours this year. You made pretty meaningful progress, I think, last year in terms of driving greater monetization potential and changing what we're kind of seeing when we first enter that interface. What are the immediate priorities or opportunities that you see that will continue to kind of evolve that from a consumer perspective, like what we're interacting with?
Sorry, on subscriptions?
Home screen.
Oh, home screen.
Yeah.
Yeah. I think I mentioned that, like, the home screen is probably our biggest asset. You know, it's what we use to drive engagement across our platform. And, you know, we put a lot of effort into it, into our home screen. We're currently testing a whole bunch of different varieties of updates to our home screen. The testing's going well, you know. We are, you know, we're seeing very positive user sentiment. We're seeing positive monetization increases, positive engagement increases. You know, and hope to launch the new home screen this year. That's, you know, that'll drive more subscriptions, that'll drive more advertising engagement.
Is the redesign focused around, being able to open that up further for an advertiser to be able to monetize more successfully and, from a consumer perspective, like, how should we think about how things change?
For the home screen?
Yeah.
Well, I guess when I think about. First of all, it's a project I'm involved in directly. Like, the home screen is so important that I spend a lot of time just, you know, like, I'm involved in that.
Yeah.
For me, the fundamental principles, number one, is, like, don't screw up our home screen. Like, we've got a great home screen, and it's iconic. Like, it's different than everyone else's. It's super simple. I mean, you know, one of the things that makes Roku popular is it's very easy to use, and a lot of that comes from our simple home screen. That's the first goal is how do we make it work better for viewers, work better for advertisers, work better for, you know, content owners, but also keep its distinctive look and maintain simplicity? That's... That said, yeah, what we're trying to do is we're trying to increase, there's more ad units in the home screen.
There's more ways, there's more entry points, you know, to send viewers to different apps or different pieces of content.
Mm-hmm.
There's, you know, it's better organized. It's got better personalization. Those are some of the things that we're doing.
It's historically, I think, been a source of predominantly what we call M&E spend in terms of your media partners advertising, with the home screen, you know, banner page next to the apps. I think that's evolved over the last few years. It sounds like even then, from an M&E perspective, we've seen some greater stability on the spending front from your partners in terms of that historically being a little bit more of a headwind to your growth. Can you just talk a little bit about the dynamic there and how M&E has started to stabilize and what we're seeing there in terms of the drivers?
Yeah. M&E, like you said, is media and entertainment is sort of our endemic. It started out as just endemic advertising. It was the first ad business we were in. These days, it's not just endemic advertisers, it's also brand advertisers. We, you know, you'll see car ads, for example, on our home screen, not just entertainment-based ads. That, first of all, that has been a, you know, there was a, it was a drag on our business. It is stabilizing, that's good news for us, and we're seeing continued stabilization there. I would say, you know, some of the things driving our M&E business these days, one is theatrical. That's a new area that we've added to our M&E business that's doing really well.
You know, movies released into theaters. Another big one, another big trend in the industry is especially as streaming services have got more into ads, is to add live events. You know, there's a... Live events are proliferating across the industry and across the streaming services. You know, when you have a live event, like, you need to let people know, like, it's on right now. So that's... Live is actually a great emerging business for us, in terms of M&E. You know, M&E is also just something we're really good at. It's where we started. You know, we're in 1/2 of U.S. broadband households.
If you have a streaming service and you want to promote it, drive subscriptions, drive engagement, it's a great way to do that.
Is potential industry consolidation, given all the news that's been happening with Warner Bros, a source of headwind potentially on how much your media partners are willing to spend there?
I mean, we'll see what happens, but I just think generally my belief is that with the scale we have, you know, with I think it's almost 40% of all streaming in the U.S. happens on our platform, over half of broadband households. Like, if you are a streaming service, you know, and you wanna promote your service, we are a very efficient and very effective way to do that. That plus the fact that we're, like I said, M&E is no longer just M&E. We still call it M&E, but it's also brand advertisers as well, and even performance advertisers. You know, we're creating new areas, like I said, like theatricals and live. Those are all driving, you know, the business.
Makes sense. On the premium subscription strategy, you've continued to add more partners there to the roster. How should we think about how some of your partners are viewing the benefits of that from a, you know, retention or churn perspective relative to maybe the incremental cost of, or economics that they might be sharing with you?
Yeah. Just to recap the three kinds of subscriptions we have. We have the direct-to-consumer subscriptions, which are like your traditional app. We have the premium subscriptions, which this is what your question was about, and I'll describe. We have our owned and operated service-
Yeah.
... subscriptions like Howdy and Frndly TV. On premium subscriptions, I think, you know. First of all, it's doing, like I said, extremely well. It's a big growth driver for us. It was, you know, we had our biggest net ads quarter last quarter ever for premium subscriptions. The drivers are basically, one, we're focusing on it. Like it's, you know, we've got dedicated teams. Someone that reports directly to me is responsible for premium subscriptions. It's just getting focused. We're adding more features. For example, you know, we added the content row to the home screen. We can put subscriptions in the content row that, you know, that drives subscription signups. I think the biggest thing that's most exciting about premium subscriptions is there's a shift going on in the industry.
Like, you know, first it was the industry just everyone launched their own app. These days, what the industry is realizing is it's very expensive to launch your own app, to sign up all the subscribers, to maintain engagement, to manage churn, to build the technology. For actually for almost every service, it's much more economical to be part of premium subscriptions than it is to create their own app. That's just driving more and more interest in premium subscriptions. I think ultimately what we're gonna see is other than a very small number of top apps, everyone will be in premium subscriptions. Like, that'll be the way, that'll be the most economical and best way to drive value for a streaming service.
That's why, for example, we just announced that Apple TV has just joined premium subscriptions, you know, along with, you know, HBO, Paramount, and then we have, you know, we're gonna be announcing other major subscription partners this year as well. I don't think people actually realize the transition that's gonna happen in the industry as everyone switches from apps to premium subscriptions.
How does your owned and operated services fit into that? You announced Howdy as being accessible off-platform recently. Can you just talk about the decision in terms of the direct revenue opportunity that you might be able to access relative to the ecosystem benefit that, you know, we possibly or could still be unlocking from keeping Howdy within your broader platform economics?
Yeah. Howdy today... Well, Howdy is Roku's streaming service that we launched not long ago. It's $3 -a -month, ad-free television, and doing well. It's something that I'm personally very excited about. Like, I mentioned I was involved in, like, the home screen. I'm also directly involved in Howdy. I meet weekly on that. I personally think it's gonna be a huge business for us. Like, to become the scale of business I think it can be, it needs to be everywhere all major streaming services are. Not just. It needs to be international, in different countries, it needs to be off-platform, it needs to be everywhere. That's our goal.
We, you know, we started where it's easy for us to start, which is on our platform as a premium subscription. We're gonna expand from there.
Okay, great. Before I run out of time, I did wanna ask about devices and your device share. Certainly, I think that is the top of funnel in terms of keeping your platform monetization opportunity healthy. There have been incremental questions both on the rising memory prices in the industry and whether that affects TV sales, and then also separately, competition in terms of the rising push from some other manufacturers, you know, Walmart as one example, with VIZIO, pushing more aggressively in terms of trying to gain share of the OS market. Maybe kind of talk about both of those and your positioning on how to keep the smart TV households still hooked on Roku and help keeping that platform, top of funnel healthy.
Sure. In 52 seconds.
In 52 seconds.
I'll do that.
Yeah.
Well, first of all, memory prices, like huge issue for the industry in general. Like, memory prices are skyrocketing, because all the memory capacity is going into AI data centers.
Yeah.
You know, for Roku, actually, I mean, it's got some, you know, there's some OpEx issues, which I'll talk about. Overall, it's highly beneficial to Roku. One of the, you know, one of the things that we did, one of the reasons that we're probably the main reason we're number one streaming platform is because we're the only company that built an operating system designed specifically for television. Everyone else uses, like, a phone operating system or HTML. In television, you know, TV is a brutally cost-competitive business. Cost really matters. From the beginning, we focused on building a software operating system that used less expensive hardware. Our BOM cost is lower than anyone else's BOM cost.
It costs less, our bill of materials, it costs less to build a Roku TV than any other device or streaming player. We also use a lot less memory than every one of our competitors. As the memory prices go up, our cost advantage goes up. I, you know, I think it's gonna drive a lot of incremental sales for us this year and probably next year as well because the cost is becoming pretty material. That's the memory. Now, there is some issues around, you know, we also sell TVs and, you know, we sell lots of TVs and streaming players. They have memory in them, those costs will go up.
You know, I think some of that will get passed on as price increases, some of it, you know, because we're extremely good at monetization, you know, we've got a lot of room in our P&L to absorb that. That's in our outlook. In terms of, you know, increased competition, just quickly, we're extremely well-positioned in the market. You know, Walmart is moving a lot of their house brand inventory to VIZIO OS, that is causing us to diversify and broaden our distribution strategy. I think the key point is that we literally spend $hundreds of millions a year on incentives for distribution, both with retailers and with OEMs. We have a lot of flexibility how we can spend that.
We are effectively broadening our distribution because of that. For example, we recently updated our OEM deals with our two biggest OEMs, TCL and Hisense. You know, we launched Hisense branded TVs at Target recently. We launched Pioneer, with Pioneer branded TVs at Best Buy. We're effectively expanding our distribution. You know, we just have a lot of assets as well. Like, you know, we have a lot. We have half of U.S. broadband households. Those users love their Roku devices. They go in and ask for them by name. You know, we're still, you know, I think what we'll see is, like, you know, sales might bounce around quarter to quarter, but I think you'll see the results of our distribution expansion kick in in the second half of the year.
You know, I'm still very confident we're gonna continue to expand the number of streaming households, and we're still on track to pass over 100 million streaming households this year.
Great. With that, we're over time.
Great.
Thank you so much for being here.
Thank you.
Thanks.