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 (9)
- Inventory buildup exceeds sales growth: Inventory grew +71.8% vs revenue +11.5%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
- Gross margin compression: Gross margin contracted +2.4%pp (from 46.1% to 43.7%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- Endogenous analysis: Inventory accumulation alongside margin compression is a classic demand-softening signal: excess inventory typically leads to discounting, which compresses margins further. Monitor for clearance events, write-downs, or guidance revisions.
- 4 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- Latest annual report (10-K) filed Feb 13, 2026.
- Latest quarterly report (10-Q) filed May 1, 2026.
- Inventory buildup exceeds sales growth: Inventory grew +71.8% vs revenue +11.5%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
- Gross margin compression: Gross margin contracted +2.4%pp (from 46.1% to 43.7%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
Filings & ownership
- Latest annual report (10-K) filed Feb 13, 2026.
- Latest quarterly report (10-Q) filed May 1, 2026.
- 6 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 6 sell transactions — net selling $1.5M.
Full ROKU analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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