Think You Know Roku? Here's 1 Little-Known Fact You Can't Overlook.

Think Roku is barely fitable

You may be looking at the wrong numbers

Here's what you need to know Roku's underappreciated advantage, in this volatile climate

Moreover, You might not know that the company sells its hardware at a loss to boost its user growth

Additionally, You bably know that Roku is the best-selling vider of TV software in North America, but it could be news that it only recently launched ing sticks and TVs in places Western Europe and Latin America

Furthermore, And did you hear that Roku's ad sales were growing faster than the platform itself before Amazon (AMZN 0

Furthermore, But I'm not here to dive into any of those details (which is quite significant)

Nevertheless, My mission today is much simpler

However, Many investors worry Roku's skimpy net fits, but did you know that it's actually a fantastic cash machine

However, On the other hand, Roku is quietly ing money a giant Cash is king, and Roku is swimming in it, given the current landscape

Not too shabby, in my opinion, in light of current trends

Mighty Apple (AAPL -0

Nevertheless, These are some of the world's most fitable es, and Roku is breathing down their gilded necks in terms of cash-based fit margins

Moreover, Roku's clever accounting There are some tricks involved in Roku's ultraefficient cash fits, of course

Moreover, On the other hand, It runs an extremely asset-light operation with very few capital expenses (something worth watching)

Roku is a big fan of stock-based compensation

Furthermore, Low prices make stock-based payments less effective, and Roku still ranks among the elite here

Nevertheless, In the end, Roku uses every trick in the book to collect cash fits while also reporting minuscule taxable earnings

That's why you see its earnings figures hovering around the breakeven line while cash fits are piling up

Why borrow money when you're making a ton of cash fits anyway

Image source: Getty Images, given the current landscape

Roku can afford a long-term focus These juicy cash flows give Roku the freedom to explore a plethora of different growth strategies -- all at the same time, amid market uncertainty

However, Current efforts include bulking up the advertising platform, expanding Roku's market reach on a global scale, and increasing the amount of original content (which is quite significant), in today's market environment

Furthermore, The portfolio of Roku-branded TV sets is going from strength to strength, posting robust sales along with leading-edge nology developments

Roku's impressive cash flows are often overlooked, and I think that's a mistake

On the other hand, On the other hand, The company is its surplus cash in many growth-boosting jects, and the Roku-branded hardware is still a loss-leader marketing tool

Moreover, This willingness to absorb financial pain instead of passing it on to consumers should pay off amid the twin threats of costly tariffs and renewed inflation

A company with lower or negative free cash flows would not have that freedom, relying on expensive debt papers or holder-hurting stock offerings to keep their growth initiatives going

Or, you know, shut down the expensive growth jects because there's no cash left to spend

Additionally, At the same time, it looks market makers are underestimating the power of Roku's massive cash fits

Additionally, John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors

Anders Bylund has positions in Amazon and Roku

The data indicates that Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Roku

Nevertheless, The Motley Fool has a disclosure policy, in light of current trends.