Roblox (RBLX) has been one of 2025’s breakout winners. The stock has surged nearly 130% year-to-date and more than 200% over the past year, solidifying its place as one of tech’s strongest momentum stories. Although a recent child-safety lawsuit briefly unsettled investors, shares have quickly rebounded and now sit near all-time highs.
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Looking ahead, I see further upside. Roblox is benefiting from accelerating user engagement, viral in-game experiences, and a highly scalable monetization model. As the platform continues to expand globally and reach broader age demographics, I remain Bullish on RBLX.
Q2 Beat Confirms Momentum
In July, investors gained a glimpse of the gaming powerhouse’s potential. Roblox delivered blowout Q2 2025 results, beating already elevated expectations. Daily Active Users (DAUs), bookings, and profitability all surged. The company now has 111.8 million DAUs, up 41% year-over-year, with hours engaged rising 58% to 27.4 billion. Monthly unique payers hit a record 23.4 million, up 42% YoY. Gross bookings reached $5.1 billion on a trailing-12-month basis, up 34%.
Profitability is improving alongside growth. Free operating cash flow nearly doubled year-over-year to $942 million for the 12 months ended June 30, compared to $440 million the prior year. This improving operating leverage provides confidence that Roblox can continue expanding margins while scaling its business.
Lawsuit Noise Creates Volatility
On August 15, shares dipped after Louisiana Attorney General Liz Murrill filed a lawsuit alleging Roblox lacked adequate child protection. The complaint seeks penalties and highlights a specific incident involving platform misuse.
While the allegations are serious, I view them as an inherent risk for any large-scale social platform, particularly one with 40% of users under 13. Roblox has consistently taken steps to improve safety, including age estimation tools, “Trusted Connections,” enhanced parental controls, and privacy features. The company also open-sourced its AI safety system, Roblox Sentinel, to help identify predatory behavior across platforms.
Trust and safety will always be central to Roblox’s success, and management appears to be moving quickly to address concerns. Although more legal or political scrutiny is possible, I believe Roblox’s robust response should help ease investor worries.
Viral Hits Driving Engagement
Roblox’s strength lies in its ability to generate viral, user-created experiences. In August, a crossover event between Grow a Garden and Steal a Brainrot drove a massive spike in concurrent users. Roblox CEO David Baszucki reported that daily peak users hit 45 million, surpassing Steam’s all-time record.
Grow a Garden has been a standout success, becoming the fastest Roblox game to reach one billion visits — just 33 days after launch — and peaking at 8.9 million concurrent users.
Expanding Lineup Strengthens Balance Sheet
Roblox’s growth is no longer confined to children. Users over 13 now represent 64% of its base, up from 50% in 2021. Geographically, the platform has also diversified: Europe and North America account for 41% of DAUs today versus 61% in 2021, highlighting substantial international expansion.
Roblox’s content library is also expanding, with RPGs, sports titles, and shooters drawing in new demographics. This diversification aligns with its strategy to capture a larger share of the global gaming market. Backing this growth is a solid financial foundation: Roblox holds $3.7 billion in net cash, comprised of $995 million in cash, $1.6 billion in short-term investments, and $2.1 billion in long-term investments, offset by $1 billion in debt. This liquidity gives the company ample flexibility to invest in platform safety, developer tools, and international expansion.
Premium Yet Justified Valuation
Roblox is far from cheap. The stock trades at a premium multiple, reflecting its exceptional growth. While the valuation may appear stretched, I believe it’s warranted given the company’s accelerating bookings, expanding free cash flow, and ambitious long-term goals.
Management’s initiatives in advertising and commerce, combined with AI-powered developer tools, are reinforcing the platform’s content flywheel. With a stated aim of capturing 10% of the global mobile gaming market, Roblox’s premium valuation reflects the scale of its opportunity.
Is RBLX a Good Stock to Buy?
According to TipRanks, Roblox holds a Strong Buy consensus based on 20 analyst ratings: 16 Buys, 3 Holds, and 1 Sell. The average price target is $146.90, with a high forecast of $170 and a low of $77, implying ~12% upside from current levels.
Just last week, Roblox RBLX stock jumped more than 6% in a single trading session after top Wedbush analyst Alicia Reese hailed the stock as “the most compelling growth opportunity” in the video game sector while slapping a $165 price target on the stock.
Roblox Positioned to Push Past All-Time Highs
Roblox’s Q2 beat, coupled with sustained engagement growth, underscores the strength of its platform. Viral experiences, a broadening demographic base, and expanding monetization are fueling durable momentum.
The recent Louisiana lawsuit highlights the regulatory risks inherent in a youth-focused business, but management’s swift rollout of new safety measures demonstrates its commitment to trust and platform integrity. Meanwhile, record user growth, rising free cash flow, and advanced developer tools position Roblox with a rare blend of scale, growth, and profitability.
I remain bullish on RBLX and see potential for the stock to surpass all-time highs as the market increasingly recognizes its long-term monetization potential.