Roku Inc. (ROKU) shares tumbled 5.83% in pre-market trading on Friday, following the company's second-quarter earnings report. Despite beating expectations and raising its full-year outlook, investors seem concerned about the streaming platform provider's future growth prospects and increasing competition in the industry.

For Q2 2025, Roku reported total net revenue of $1.111 billion, up 15% year-over-year and surpassing analyst estimates of $1.072 billion. The company's platform revenue, which includes advertising and content distribution, grew by an impressive 18% to $975 million. Roku also surprised analysts by posting a profit of $0.07 per share, compared to the expected loss of $0.15 per share.

Despite these positive results and Roku raising its full-year 2025 platform revenue outlook to $4.075 billion and adjusted EBITDA to $375 million, investors appeared to focus on potential headwinds. The stock's sharp decline may reflect concerns about the sustainability of growth rates, competitive pressures in the streaming industry, or the impact of macroeconomic factors on advertising spending. Additionally, the announcement of a $400 million stock repurchase program and the appointment of Dan Jedda as the new CFO and COO may have contributed to investor uncertainty about the company's long-term strategy and financial management. As the market digests these mixed signals, Roku's stock may experience continued volatility in the coming trading sessions.