Roblox (NYSE:RBLX) Announces Quarterly Earnings Results

Roblox (NYSE:RBLX) posted its earnings results on Thursday. The company reported ($0.26) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.34) by $0.08, FiscalAI reports. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same period in the prior year, the company posted ($0.41) EPS. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year.

Here are the key takeaways from Roblox’s conference call:

• Revenue grew 36% to $1.5 billion, while operating cash flow rose 60% and free cash flow increased 66% year over year to $294 million. Roblox ended the quarter with 123 million DAUs, up 10%.
• International momentum remained strong, with DAUs increasing 67% in Japan and 64% in India; hours grew 61% and 59%, respectively. Roblox also benefited from users returning after the platform was unblocked in Russia.
• Bookings grew only 8% to $1.6 billion, as bookings per hour—especially among users under 13—fell below expectations. Engagement shifted away from highly monetizing viral games, while discovery changes prioritizing long-term retention created additional near-term monetization pressure.
• Roblox expects Q3 bookings of $1.58 billion to $1.65 billion, implying a 14% to 18% year-over-year decline, with monetization weakness likely to continue. The company withdrew updated full-year guidance and warned of margin pressure from fixed-cost deleveraging and higher AI-related infrastructure expenses.
• Management is investing in long-term growth through AI-powered creation tools such as Build, video and game discovery through Moments, broader 2D and 18-plus content, enhanced communications, and photorealistic multiplayer technology. Executives believe these initiatives can expand Roblox’s addressable market and eventually offset near-term monetization sacrifices.

Roblox Price Performance

Shares of Roblox stock traded down $1.50 on Thursday, hitting $48.63. 25,823,736 shares of the company traded hands, compared to its average volume of 6,485,029. Roblox has a 12-month low of $40.15 and a 12-month high of $150.59. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The company has a market cap of $32.66 billion, a P/E ratio of -30.78 and a beta of 1.41. The firm’s 50-day simple moving average is $49.53 and its 200 day simple moving average is $57.08.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. TD Cowen raised shares of Roblox from a “sell” rating to a “hold” rating and decreased their price target for the stock from $54.00 to $49.00 in a report on Friday, May 1st. Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a research note on Wednesday, June 24th. Canaccord Genuity Group reduced their target price on Roblox from $140.00 to $80.00 and set a “buy” rating for the company in a research report on Friday, May 1st. Bank of America lowered Roblox from a “buy” rating to a “neutral” rating and set a $48.00 target price on the stock. in a research note on Friday, May 1st. Finally, Arete Research set a $95.00 price target on Roblox and gave the company a “buy” rating in a report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $83.63.

Roblox announced that its board has authorized a stock buyback plan on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 9.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported a second-quarter loss of $0.26 per share, narrower than the $0.33–$0.34 analyst consensus and improved from a $0.41 loss in the year-ago quarter. Revenue increased 8.3% year over year to $1.47 billion. Roblox Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: The company discussed ongoing platform changes, including tougher age-verification requirements. These measures are intended to improve safety and compliance but are affecting user onboarding and engagement in the near term. Roblox Corporation Q2 2026 Earnings Call Transcript
• Neutral Sentiment: The European Commission said Roblox could potentially be classified as a very large online platform under the European Union’s Digital Services Act, which could bring additional regulatory obligations. No formal designation was announced. Roblox Could Be Included in DSA Scope
• Negative Sentiment: Revenue of $1.47 billion missed the approximately $1.60 billion Wall Street estimate, highlighting slower monetization despite year-over-year growth. Roblox Reports Q2 Loss and Misses Revenue Estimates
• Negative Sentiment: Roblox forecast current-quarter revenue growth of only 4% to 10% and bookings below analyst expectations, with bookings expected to decline. Management cited age-verification changes and their impact on onboarding and engagement, making the outlook the primary source of selling pressure. Roblox Forecasts Quarterly Bookings Below Estimates
• Negative Sentiment: Several law firms publicized securities-fraud class-action claims tied to Roblox’s disclosures and the effects of age verification, with an August 7 lead-plaintiff deadline. The announcements add legal and reputational risk, although they do not establish liability. RBLX Securities Class Action Alert

Insider Buying and Selling

In related news, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total value of $649,896.12. Following the transaction, the insider owned 349,964 shares of the company’s stock, valued at $15,842,870.28. This represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total value of $749,470.02. Following the sale, the director owned 1,294,501 shares in the company, valued at $58,213,709.97. The trade was a 1.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 161,983 shares of company stock valued at $7,580,990 in the last three months. 10.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roblox

Large investors have recently modified their holdings of the company. SRS Investment Management LLC purchased a new stake in Roblox in the fourth quarter worth approximately $238,065,000. ValueAct Holdings L.P. raised its stake in shares of Roblox by 39.5% during the fourth quarter. ValueAct Holdings L.P. now owns 5,975,821 shares of the company’s stock worth $484,221,000 after acquiring an additional 1,692,600 shares in the last quarter. Morgan Stanley raised its stake in shares of Roblox by 8.1% during the fourth quarter. Morgan Stanley now owns 20,728,914 shares of the company’s stock worth $1,679,664,000 after acquiring an additional 1,555,549 shares in the last quarter. State Street Corp lifted its holdings in shares of Roblox by 11.0% in the 3rd quarter. State Street Corp now owns 13,369,844 shares of the company’s stock worth $1,851,991,000 after acquiring an additional 1,326,575 shares during the last quarter. Finally, Amundi lifted its holdings in shares of Roblox by 65.8% in the 4th quarter. Amundi now owns 3,143,077 shares of the company’s stock worth $254,684,000 after acquiring an additional 1,247,631 shares during the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

About Roblox

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.