Benchmark sees Roblox entering ‘normalization phase,’ downgrades to Hold

Benchmark downgraded Roblox (RBLX) to Hold from Buy and removed the firm’s previous price target following Q3 results and forward guidance. While stating that Roblox delivered “impressive” Q3 results and solid near-term execution, guidance points to a sharp deceleration in bookings growth and rising expense intensity that could pressure margins through fiscal 2026, the analyst tells investors. The firm believes the company is entering a normalization phase after two years of extraordinary expansion, and that its near-term financial profile “no longer supports a growth valuation premium,” the analyst added.