Roku Inc. (ROKU) shares tumbled 5.47% in after-hours trading on Thursday, despite reporting better-than-expected second-quarter results and raising its full-year outlook. The streaming platform provider's strong performance was overshadowed by investor concerns about future growth prospects and increasing competition in the streaming 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 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, investors seemed to focus on potential headwinds affecting the company's future performance.

The after-hours plunge might reflect concerns about the sustainability of growth rates and competitive pressures in the streaming industry. 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 appointment of Dan Jedda as the new CFO and COO could be contributing to short-term uncertainty. As the market digests these mixed signals, Roku's stock may experience continued volatility in the coming trading sessions, with investors closely watching the company's ability to maintain its growth trajectory in an increasingly competitive streaming landscape.