Roku Inc. (ROKU) shares tumbled 5.29% in after-hours trading on Thursday, despite reporting better-than-expected second-quarter results and raising its full-year outlook. The streaming platform provider posted impressive growth in revenue and user engagement, but investors seemed to focus on other factors that could impact the company's future performance.

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 18% to $975 million, outperforming their previous outlook. 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, the stock's after-hours decline may be attributed to concerns over future growth and profitability. While Roku raised its full-year 2025 platform revenue outlook to $4.075 billion and adjusted EBITDA to $375 million, some investors might have expected even stronger guidance. Additionally, the company announced a $400 million stock repurchase program to offset dilution from employee equity-based compensation, which could be viewed as a defensive move rather than a sign of confidence in future growth. The appointment of Dan Jedda as the new CFO and COO might also be contributing to investor uncertainty. As the streaming market becomes increasingly competitive, Roku's ability to maintain its growth trajectory and profitability in the long term remains a key concern for investors.