Roblox (RBLX) AI Stock Analysis

• Market Cap: $98.14B
• Dividend Yield: N/A
• Average Volume (3M): 8.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 27.39%
• EPS Growth: 16.59%
• Country: US
• Employees: 2,474
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.41
• Shares Outstanding: 645,033,000
• 10 Day Avg. Volume: 6,962,734
• 30 Day Avg. Volume: 8,032,032
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 17.69
• Enterprise Value/Gross Profit: 22.68
• Enterprise Value/Ebitda: -103.90
• 1Y Price Target: $149.88
• Price Target Upside: 8.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 74 Outperform
• Price Target: $159.00 ▲(14.78% Upside)

Roblox's overall stock score is driven by strong technical indicators and a positive earnings call, reflecting robust growth and strategic initiatives. However, the score is moderated by financial challenges, including ongoing losses and a weak equity position, as well as valuation concerns due to a negative P/E ratio. The company's ability to sustain growth while addressing profitability and financial stability will be crucial for future performance.

Positive Factors

Revenue Growth

Roblox's strong revenue growth highlights its expanding market presence and successful monetization strategy, driven by increased user engagement and platform adoption.

User Engagement

The significant increase in daily active users indicates robust platform engagement, which is crucial for sustaining long-term growth and attracting developers and advertisers.

Cash Flow Management

Effective cash flow management ensures Roblox can reinvest in growth opportunities and maintain financial stability despite ongoing net losses.

Negative Factors

Profitability Challenges

Persistent net losses and negative profit margins pose challenges to achieving profitability, potentially impacting long-term financial health and investor confidence.

Leadership Transition

Leadership changes can disrupt strategic continuity and execution, affecting company stability and potentially delaying key initiatives.

Legal Challenges

Ongoing legal challenges could result in reputational damage and financial liabilities, impacting Roblox's ability to maintain trust and grow its user base.

Roblox Business Overview & Revenue Model

Company Description

Roblox Corporation develops and operates an online entertainment platform. The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform. It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific, and internationally. The company was incorporated in 2004 and is headquartered in San Mateo, California.

How the Company Makes Money

Roblox generates revenue through multiple key streams. The primary source of income is the sale of its virtual currency, Robux, which players use to purchase in-game items, accessories, and avatar customization options. Roblox takes a percentage of the transactions made on its platform, allowing developers to monetize their games through in-game purchases and advertisements. Additionally, Roblox earns revenue from subscription services like Roblox Premium, which offers users a monthly allowance of Robux and exclusive benefits. The company also benefits from partnerships with brands and developers, enabling them to create tailored experiences and promotional content within the platform, further enhancing its revenue potential. Overall, the combination of user spending on Robux, premium subscriptions, and partnerships forms the backbone of Roblox's revenue model.

Roblox Financial Statement Overview

Summary

Roblox demonstrates strong revenue growth and effective cash flow management, yet struggles with profitability and a weak equity position. There are positive signs in operational cash flows, but consistent net losses and negative equity present financial stability challenges.

Income Statement

Roblox has shown impressive revenue growth, with a notable increase in total revenue from $923.9 million in 2020 to $4.02 billion in TTM (Trailing-Twelve-Months). However, the company operates at a significant net loss, with a negative net profit margin, indicating challenges in achieving profitability. The gross profit margin remains strong, suggesting efficient cost management at the gross level despite overall losses. The EBIT and EBITDA margins are negative, reflecting ongoing operational losses.

Balance Sheet

The balance sheet reveals a low equity position, with stockholders' equity significantly decreasing over time, raising concerns about financial stability. The debt-to-equity ratio is problematic due to low equity, potentially indicating high leverage. However, the company maintains a healthy cash reserve, which may provide some buffer against financial instability.

Cash Flow

Roblox's cash flow from operations is strong, and the company has managed to generate positive free cash flow consistently, which is a positive indicator of financial health despite net losses. The growth in free cash flow suggests improving efficiency in capital management. The operating cash flow to net income ratio is favorable, highlighting effective cash flow management amid losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.02B	3.60B	2.80B	2.23B	1.92B	923.88M
Gross Profit	3.14B	2.80B	2.15B	1.68B	1.42B	683.99M
EBITDA	-685.14M	-670.25M	-910.95M	-761.86M	-421.40M	-220.54M
Net Income	-952.33M	-935.38M	-1.15B	-924.37M	-491.65M	-253.25M
Balance Sheet
Total Assets	7.85B	7.18B	6.17B	5.38B	4.56B	1.85B
Cash, Cash Equivalents and Short-Term Investments	2.63B	2.41B	2.19B	2.98B	3.00B	893.94M
Total Debt	1.79B	1.81B	1.76B	1.56B	1.23B	0.00
Total Liabilities	7.51B	6.97B	6.10B	5.07B	3.97B	2.08B
Stockholders Equity	353.22M	221.45M	76.29M	306.03M	584.82M	-252.39M
Cash Flow
Free Cash Flow	964.47M	642.67M	124.01M	-58.37M	557.98M	411.22M
Operating Cash Flow	1.08B	822.32M	458.18M	369.30M	659.11M	524.34M
Investing Cash Flow	-1.15B	-852.07M	-2.83B	-441.05M	-146.82M	-97.03M
Financing Cash Flow	96.79M	65.89M	67.18M	43.64M	1.60B	164.97M

Roblox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBLX, the sentiment is Positive. The current price of 138.52 is above the 20-day moving average (MA) of 133.94, above the 50-day MA of 128.06, and above the 200-day MA of 87.15, indicating a bullish trend. The MACD of 3.14 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 77.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBLX.

Roblox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	80 Outperform	$91.53B	20.53	22.87%	1.90%	2.86%	19.96%
EA	75 Outperform	$50.55B	50.73	17.13%	0.38%	2.68%	-6.15%
RBLX	74 Outperform	$98.14B	―	-401.21%	―	27.39%	16.59%
BILI	68 Neutral	$11.04B	386.91	-9.55%	―	22.89%	―
TTWO	60 Neutral	$47.95B	-10.79	-121.49%	―	7.33%	-7.46%
PLTK	59 Neutral	$1.47B	16.96	-98.41%	10.28%	4.98%	-60.29%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Roblox Corporate Events

Roblox Announces Chief Product Officer Resignation

On July 28, 2025, Roblox announced the resignation of its Chief Product Officer, Manuel Bronstein, effective September 30, 2025, with plans to remain as an advisor until April 2026. The company also reported strong financial results for the second quarter of 2025, with significant increases in revenue, bookings, and daily active users, reflecting its strategic investments and growth potential in the gaming industry.

The most recent analyst rating on (RBLX) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox CFO Michael Guthrie Resigns Amid Management Changes

On June 30, 2025, Roblox Corporation announced the resignation of its Chief Financial Officer, Michael Guthrie, effective the same day. As part of his departure, the company and Guthrie agreed to amend his Separation and Transition Agreement, affecting the vesting of his performance-based restricted stock units (RSUs). Specifically, certain RSUs from awards granted in 2023 and 2024 will vest based on company performance, with remaining RSUs being canceled. This adjustment reflects the company’s ongoing management transitions and could impact its financial planning and stakeholder relations.

The most recent analyst rating on (RBLX) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Appoints Naveen Chopra as New CFO

Roblox Corporation announced the appointment of Naveen Chopra as its new Chief Financial Officer, effective June 30, 2025. Chopra, with extensive experience in financial and strategic leadership from companies like Paramount and Amazon, will oversee Roblox’s financial operations. This strategic move is expected to bolster Roblox’s growth and innovation in the gaming and entertainment sectors, as Chopra’s background aligns with the company’s vision of connecting and empowering a global audience. Michael Guthrie, the outgoing CFO, will remain until June 30, 2025, to ensure a smooth transition.

The most recent analyst rating on (RBLX) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Reincorporates to Nevada After Stockholder Meeting

On May 29, 2025, Roblox Corporation held its 2025 Annual Meeting of Stockholders, where key decisions were made including the election of directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the accounting firm. Additionally, the stockholders approved the company’s reincorporation from Delaware to Nevada, effective May 30, 2025. This reincorporation did not alter the company’s business operations, management, or financial standing but did result in changes to stockholder rights and governance under Nevada law.

The most recent analyst rating on (RBLX) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.