It does fine. It’s an i5-6500 running CPU transcoding only. Handles 2-3 concurrent 1080p streams just fine. Sometimes there’s a little buffering if there’s transcoding going on. I try to keep my files at 1080p for storage reasons though. This thing’s not going to handle 4k transcoding very well, but it does okay if you don’t expect too much from it.
Not a huge amount of transcoding happening, but some for old Chromecasts and some for low bandwidth like when I was out of the country a few weeks ago watching from a heavily throttled cellular connection. Most of my collection is h264, but I’ve got a few h265 files here and there. I am by no means recommending my setup as ideal, but it works okay.