Shares of Roblox (RBLX) cratered in after-hours trading after the online entertainment platform reported earnings for its first quarter of Fiscal Year 2026. Earnings per share came in at -$0.35, which beat analysts’ consensus estimate of -$0.41 per share. In addition, sales increased by 39% year-over-year, with revenue hitting $1.4 billion. However, this missed analysts’ expectations of $1.74 billion.
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Nevertheless, Roblox pointed to strong growth in user activity, which continues to support the business. The company reported that daily active users rose to 132 million, up 35% year-over-year, while hours engaged increased 43% to 31 billion. As a result, users are not only joining the platform but also spending more time on it. This higher engagement is important because it helps drive bookings, which came in at $1.7 billion, up 43% from last year, although this missed estimates by $50 million.
At the same time, Roblox is investing in AI tools to help developers create better experiences, while also improving pricing systems and expanding partnerships. Because of this, the company is trying to build a cycle where better content attracts more users, and more users lead to higher spending. While these investments may take time to fully show up in profits, management believes they will support steady growth over the long run.
Is RBLX Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RBLX stock based on 17 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average RBLX price target of $105.10 per share implies 90.6% upside potential.
