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Roblox
(NYSE:RBLX)
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Rating:61Neutral
Price Target:
$47.00
▲(25.13% Upside)
Action:Reiterated
Date:09/15/26
RBLX scores moderately due to strong and improving cash generation alongside rapid revenue scaling and high gross margins, partially offset by continued operating/net losses and a thin equity cushion. Technicals are supportive in the short-to-medium term (price above key shorter DMAs), but the earnings call introduces meaningful near-term risk via weak Q3 bookings guidance and margin pressure from increased AI/infrastructure investment. Valuation remains a headwind given a negative P/E and no dividend yield.
Positive Factors
Revenue and user growth
Revenue has scaled from about $1.9B in 2021 to $4.9B in 2025 and $5.69B TTM, while Q2 2026 revenue grew 36% year over year. This sustained expansion indicates growing platform reach and gives Roblox a larger base from which engagement, creator activity, and monetization can compound.
Negative Factors
Persistent operating losses
Roblox still reports a TTM operating margin near -20% and net margin near -21%, despite gross margins of roughly 74%–78%. Persistent operating and net losses show that scale has not yet translated into durable profitability, limiting confidence in earnings conversion over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and user growth
Revenue has scaled from about $1.9B in 2021 to $4.9B in 2025 and $5.69B TTM, while Q2 2026 revenue grew 36% year over year. This sustained expansion indicates growing platform reach and gives Roblox a larger base from which engagement, creator activity, and monetization can compound.
Read all positive factors
Roblox Key Performance Indicators (KPIs)
Any
Total Daily Active Users
Monitors the number of users engaging with Roblox daily, indicating the platform's popularity, user retention, and potential for monetization.
Monitors the number of users engaging with Roblox daily, indicating the platform's popularity, user retention, and potential for monetization.
Data provided by:
The Fly
The FlyRoblox (RBLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.40B
Dividend YieldN/A
Average Volume (3M)11.41M
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth41.33%
EPS Growth0.75%
CountryUS
Employees3,065
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-1.43
Shares Outstanding669,993,000
10 Day Avg. Volume10,513,273
30 Day Avg. Volume11,410,494
Financial Highlights & Ratios
PEG Ratio-7.58
Price to Book (P/B)141.65
Price to Sales (P/S)11.43
P/FCF Ratio41.30
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue6.64
Enterprise Value/Gross Profit8.42
Enterprise Value/Ebitda-52.48
Forecast
1Y Price Target
$47.91Price Target Upside27.56% Upside
Rating ConsensusHold
Number of Analyst Covering24
EPS Forecast (FY)-1.45
Revenue Forecast (FY)$6.95B
Roblox Business Overview & Revenue Model
Company Description
Roblox Corporation oversees the development and operation of a leading digital entertainment ecosystem. Its offerings include Roblox Studio, a complimentary suite of tools empowering developers and artists to construct, launch, and manage interact...
How the Company Makes Money
Roblox primarily makes money by selling its virtual currency, Robux, which users purchase (or obtain via certain subscriptions) and then spend on digital goods and within experiences on the platform. When users spend Robux on items such as avatar ...
Roblox Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong top‑line revenue growth, substantial cash flow expansion, user growth and international gains, plus meaningful progress on safety and strategic product initiatives (Build, Moments, Reality). However, those positives were offset in the near term by a notable monetization shortfall (especially among under‑13 cohorts), discovery algorithm changes that reduced short‑term bookings, a Q3 bookings guide implying a 14%–18% YoY decline, and increased AI/infrastructure investments that pressure margins. Management emphasized conviction in long‑term benefits from discovery and AI investments but acknowledged short‑term variability and withheld full‑year guidance.Positive Updates
Revenue Growth
Revenue grew 36% year‑over‑year to $1.5 billion in Q2 2026.
Negative Updates
Monetization Shortfall
Bookings per hour were below forecast, driven primarily by under‑13 cohorts and a mix shift from high‑monetizing viral games to newer/evergreen experiences with lower hourly monetization.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Revenue grew 36% year‑over‑year to $1.5 billion in Q2 2026.
Read all positive updates
Company Guidance
Roblox guided Q3 bookings of $1.58–$1.65 billion (implying a 14–18% YoY decline), citing continued monetization weakness—especially lower bookings-per-hour in under‑13 cohorts driven by a mix shift and discovery algorithm changes—while expecting sequential DAU tailwinds from seasonality and Russia’s reinstatement; for context, Q2 revenue was $1.5B (+36% YoY) and bookings $1.6B (+8%), with 123M DAUs (+10%), 29B hours (+5%), operating cash flow of $318M (+60%) and free cash flow of $294M (+66%). The company warned Q3 margins will face fixed-cost deleveraging and higher infrastructure spending for AI initiatives (Build, Reality, Moments), is not providing updated full‑year guidance, and highlighted AgeCheck penetration at 57% globally (Australia ~80%, US/UK ~70%, US 18+ 75%) together with a long‑term growth ambition of >20% CAGR and a 10% target share of global gaming.Roblox Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
46
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.69B | 4.89B | 3.60B | 2.80B | 2.23B | 1.92B |
| Gross Profit | 4.49B | 3.82B | 2.80B | 2.15B | 1.68B | 1.42B |
| EBITDA | -719.86M | -802.17M | -670.25M | -910.95M | -761.86M | -421.40M |
| Net Income | -1.00B | -1.07B | -935.38M | -1.15B | -924.37M | -491.65M |
Balance Sheet | ||||||
| Total Assets | 9.74B | 9.56B | 7.18B | 6.17B | 5.38B | 4.56B |
| Cash, Cash Equivalents and Short-Term Investments | 3.01B | 3.06B | 2.41B | 2.19B | 2.98B | 3.00B |
| Total Debt | 1.84B | 1.80B | 1.81B | 1.76B | 1.56B | 1.23B |
| Total Liabilities | 9.62B | 9.18B | 6.97B | 6.10B | 5.07B | 3.97B |
| Stockholders Equity | 152.00M | 394.48M | 221.45M | 76.29M | 306.03M | 584.82M |
Cash Flow | ||||||
| Free Cash Flow | 1.64B | 1.35B | 641.30M | 124.01M | -58.37M | 557.98M |
| Operating Cash Flow | 2.10B | 1.80B | 822.32M | 458.18M | 369.30M | 659.11M |
| Investing Cash Flow | -1.78B | -1.39B | -852.07M | -2.83B | -441.05M | -146.82M |
| Financing Cash Flow | -316.47M | 88.53M | 65.89M | 67.18M | 43.64M | 1.60B |
Roblox Technical Analysis
Positive
37.56
Price Trends
44.73
Positive
46.05
Positive
53.11
Positive
Market Momentum
2.05
Negative
66.49
Neutral
94.40
Negative
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 37.56 is below the 20-day moving average (MA) of 47.30, below the 50-day MA of 44.73, and below the 200-day MA of 53.11, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 94.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBLX.
Roblox Risk Analysis
Roblox disclosed 52 risk factors in its most recent earnings report. Roblox reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Roblox Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $79.23B | 16.31 | 20.04% | 2.38% | 9.83% | -2.22% | |
67 Neutral | $5.74B | 25.07 | 9.84% | ― | 10.34% | 620.66% | |
61 Neutral | $37.40B | -36.74 | -288.77% | ― | 41.33% | 0.75% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $38.55B | -119.17 | -9.12% | ― | 15.30% | 92.77% | |
49 Neutral | $793.35M | -2.82 | 82.92% | 19.42% | 5.84% | -421.33% |
* Communication Services Sector Average
RBLX
Roblox
53.96
-75.28
-58.25%
NTES
NetEase
118.67
-24.97
-17.39%
TTWO
Take-Two
207.81
-46.72
-18.36%
BILI
Bilibili
13.47
-15.48
-53.47%
PLTK
Playtika Holding
2.06
-1.47
-41.66%
Roblox Corporate Events
Business Operations and StrategyFinancial Disclosures
Roblox Posts Strong Q2 Growth, Shifts Toward Older Users
Positive
Jul 30, 2026
In its shareholder letter dated July 30, 2026, Roblox reported strong second-quarter 2026 financial performance, with revenue rising 36% year over year to $1.5 billion and operating cash flow increasing 60% to $318 million. Despite these gains, bo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.