Roblox Corporation - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did RBLX Beat Earnings? Q4 2025 Results
Roblox Corp posted a significant revenue miss in its first quarter of fiscal 2026, reporting sales of $1.44 billion against a consensus estimate of $1.75 billion, a shortfall of 17.52%, even as the top line grew 39.3% year over year. The primary culprit was an aggressive rollout of mandatory age-checks that restricted platform communication for non-verified users and slowed new user acquisition more sharply than management anticipated, compounding the impact of Russia's platform ban in December 2025. On the bottom line, the company recorded a net loss of $248 million, wider than the $216 million loss a year ago, with a $57 million legal settlement accrual adding to the pressure; the consensus EPS estimate stood at -$0.40. Bright spots included average daily active users climbing 35% to 132 million and free cash flow rising 40% to $596 million. Looking ahead, Roblox trimmed its full-year 2026 revenue growth outlook to 20%-25% and guided Q2 revenue to $1.39 billion to $1.45 billion, flagging a sequential DAU decline as age-verification headwinds persist.
- DAUs grew 35% YoY to 132 million; hours engaged grew 43% YoY to 31 billion
- Average monthly unique payers increased 52% YoY to 31 million
- Favorable user mix shift toward higher-monetizing demographics drove topline growth outpacing DAU growth
- Content diversity strengthened: experiences outside top 10 saw 43% engagement growth YoY
- International DAU growth of 40% YoY outside U.S. and Canada
- O18 DAUs and Hours in the U.S. grew 40% YoY; 18-34 cohort grew over 50%
- Cost of revenue as % of revenue declined 140 bps YoY; personnel costs ex-SBC declined 290 bps as % of revenue
- Lower-cost platform bookings mix drove reduced payment processing fees
Forward Guidance & Outlook
Roblox lowered its full-year 2026 guidance due to continued safety-related headwinds from age-check rollouts. Full-year 2026 revenue growth is now expected at 20%-25% ($5,865M-$6,135M), bookings growth at 8%-12% ($7,330M-$7,600M), operating cash flow of $1,570M-$1,745M, and free cash flow of $1,050M-$1,275M. For Q2 2026, revenue is guided at $1,390M-$1,450M (29%-34% YoY growth), bookings at $1,550M-$1,610M (8%-12% growth), with a sequential decline in DAUs expected. The company expects consolidated net loss for the full year of $1,035M-$1,175M (excluding loss contingency accruals). Capital expenditure expectations remain unchanged. Despite near-term adjustments, management reaffirmed its long-term target of 20%+ annualized topline growth and margin expansion.
RBLX YoY Financials
Figures from SEC filings and company reports. Not investment advice.