Roblox (NYSE:RBLX) Announces Quarterly Earnings Results

Roblox (NYSE:RBLX) posted its quarterly earnings results on Thursday. The company reported ($0.26) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.08, FiscalAI reports. The company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. Roblox had a negative return on equity of 243.73% and a negative net margin of 17.60%.Roblox’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.41) EPS.

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 Stock Down 26.7%

Shares of Roblox stock traded down $13.01 during trading hours on Friday, hitting $35.66. The company had a trading volume of 63,034,537 shares, compared to its average volume of 7,370,625. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. The company’s 50-day moving average is $49.28 and its two-hundred day moving average is $56.93. The company has a market cap of $23.95 billion, a P/E ratio of -24.94 and a beta of 1.41. Roblox has a twelve month low of $33.88 and a twelve month high of $150.59.

Roblox declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the company to buy up to 9.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported an adjusted second-quarter loss of $0.26 per share, narrower than the consensus loss estimate of approximately $0.33–$0.34. Revenue increased 8.3% year over year to $1.47 billion, although it was below the $1.60 billion analyst estimate. Roblox Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted continued investment in AI creation tools and efforts to expand Roblox’s gaming ecosystem, while daily active users grew 10% year over year. These initiatives could support longer-term engagement and monetization. Roblox Q2 Earnings Call Highlights AI Push and Monetization Reset
• Neutral Sentiment: TD Cowen cut its price target from $49 to $40 and moved to a Hold rating. Wedbush maintained Neutral but reduced its target from $65 to $40, indicating analysts see limited near-term upside while the outlook is reassessed. Roblox Analysts Slash Their Forecasts After Q2 Results
• Negative Sentiment: Roblox forecast third-quarter bookings of $1.58 billion to $1.65 billion, below Wall Street expectations, and projected revenue growth of only 4% to 10%. Investors were particularly concerned that changes to discovery and recommendation algorithms are reducing in-app spending. Roblox set for worst one-day drop as discovery changes hurt in-app spending
• Negative Sentiment: Stricter age-verification and safety measures are weighing on user onboarding and engagement, creating additional uncertainty around bookings and monetization despite ongoing user growth. The disappointing outlook prompted multiple analysts to issue Sell ratings or sharply lower forecasts. Roblox shares plummet on revenue miss, withdrawn guidance
• Negative Sentiment: Several law firms announced or promoted a securities class action covering investors who purchased Roblox shares from October 31, 2024, through April 30, 2026. The August 7, 2026 lead-plaintiff deadline adds legal and reputational risk, although the announcements themselves do not establish liability. RBLX Investor Alert

Insider Activity

In other Roblox news, CEO David Baszucki sold 50,628 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the transaction, the chief executive officer owned 852,214 shares of the company’s stock, valued at approximately $38,588,249.92. This trade represents a 5.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew D. Kaufman sold 14,356 shares of Roblox stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total value of $649,896.12. Following the sale, the insider owned 349,964 shares in the company, valued at $15,842,870.28. This trade represents a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 161,983 shares of company stock worth $7,580,990 over the last three months. Company insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. GW&K Investment Management LLC increased its position in Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after buying an additional 161 shares during the period. Zions Bancorporation National Association UT purchased a new position in shares of Roblox during the fourth quarter worth approximately $32,000. Sunbelt Securities Inc. grew its position in shares of Roblox by 58.7% during the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after acquiring an additional 105 shares during the last quarter. Jessup Wealth Management Inc acquired a new position in shares of Roblox in the 4th quarter valued at $40,000. Finally, Horizon Investments LLC increased its holdings in shares of Roblox by 2,636.4% in the 3rd quarter. Horizon Investments LLC now owns 301 shares of the company’s stock valued at $42,000 after acquiring an additional 290 shares during the period. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. BMO Capital Markets lowered shares of Roblox from an “outperform” rating to a “market perform” rating and set a $45.00 target price on the stock. in a research note on Friday. Needham & Company LLC decreased their price target on shares of Roblox from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Friday. BTIG Research cut shares of Roblox from a “neutral” rating to a “sell” rating and set a $30.00 price target for the company. in a report on Friday. Deutsche Bank Aktiengesellschaft downgraded shares of Roblox from a “buy” rating to a “hold” rating and dropped their price objective for the company from $56.00 to $38.00 in a research report on Friday. Finally, UBS Group set a $33.00 price objective on shares of Roblox in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, Roblox presently has a consensus rating of “Hold” and an average price target of $67.04.

Roblox Company Profile

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.