Roku Inc. (ROKU) 10-K Red Flags
Risk signals extracted deterministically from Roku Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (12)
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 5 recent filing(s) (vs 8 in the prior period). This risk language is ongoing.
- Restatement of financial statements: The term "restatement of" "previously issued" appears in 1 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 5.47x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- R&D intensity declining: R&D as % of revenue fell from 17.5% to 15.4%. This may signal reduced innovation investment — potentially impacting long-term competitive position. Compare with peer R&D trends.
- NEW: Off-balance sheet arrangements: Off-balance sheet arrangements appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: 2 risk signal(s) detected versus 1 positive signal(s). The balance of evidence suggests elevated filing-specific risk that warrants monitoring in subsequent filings.
- 10 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 1 new risk-language term(s) detected in filing text: Off-balance sheet arrangements.
- Ongoing high-severity risk language: Material weakness in internal controls, Restatement of financial statements.
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 5 recent filing(s) (vs 8 in the prior period). This risk language is ongoing.
- Restatement of financial statements: The term "restatement of" "previously issued" appears in 1 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
Filings & ownership
- Latest quarterly report (10-Q) filed Aug 6, 2026.
- 6 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 1 sell transactions — net selling $1.1M.
- ~10,000+ recent 13F-HR filings reference Roku Inc.; broad institutional reporting.
- Recent filers include Empirical Capital Management, LLC, Empirical Capital Management, LLC, SYMMETRY PEAK MANAGEMENT LLC.
- 20 recent 13G passive institutional ownership notices.
Full ROKU analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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