Roku vs Warner Music Group
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KIRA’s take AI analyst
I put Roku and Warner Music Group side by side, using each one’s latest annual report. Here is what stands out:
- Warner Music Group is the larger business, with $6.7B of revenue in fiscal 2025 against $4.7B for Roku.
- Roku grew revenue faster (15.2%, against 4.4%).
- Warner Music Group kept more of each dollar of sales as operating profit (10.4% operating margin, against −0.1%).
- Roku turned more of its sales into free cash flow (10.1% FCF margin, against 8.0%).
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Roku
ROKU
4/8
Revenue growth5-year growthFCF marginNet debt / EBITDA
Warner Music Group
WMG
4/8
Gross marginOperating marginNet marginReturn on equity
Side by side
Best in the row
| Latest fiscal year | ROKU FY25 | WMG FY25 |
|---|---|---|
| Size | ||
| Market cap | $23.9B | — |
| Revenue | $4.7B | $6.7B |
| Free cash flow | $478M | $539M |
| Net income | $88.4M | $365M |
| Growth | ||
| Revenue growth | 15.2% | 4.4% |
| 5-year growth | 21.7% | 8.5% |
| Share count change | 4.3% | — |
| Profitability | ||
| Gross margin | 43.8% | 45.9% |
| Operating margin | −0.1% | 10.4% |
| Net margin | 1.9% | 5.4% |
| FCF margin | 10.1% | 8.0% |
| Return on capital | — | 12.2% |
| Return on equity | 3.4% | 62.7% |
| Balance sheet | ||
| Net debt | −$2.3B | $3.8B |
| Net debt / EBITDA | −58.0x | 3.6x |
| Dividends and buybacks | $150M | $399M |
| Valuation & quality | ||
| P/E | 66.9x | — |
| Piotroski F-score | 6 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.