Roblox (RBLX) AI Stock Analysis

• Market Cap: $41.30B
• Dividend Yield: N/A
• Average Volume (3M): 11.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 32.70%
• EPS Growth: 12.57%
• Country: US
• Employees: 2,474
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.45
• Shares Outstanding: 661,635,560
• 10 Day Avg. Volume: 8,624,208
• 30 Day Avg. Volume: 11,307,600
• PEG Ratio: -7.56
• Price to Book (P/B): 141.65
• Price to Sales (P/S): 11.43
• P/FCF Ratio: 41.30
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 8.42
• Enterprise Value/Gross Profit: 10.79
• Enterprise Value/Ebitda: -51.36
• 1Y Price Target: $110.27
• Price Target Upside: 89.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): -1.64
• Revenue Forecast (FY): $8.41B

• Rating: 57 Neutral
• Price Target: $60.00 ▲(2.97% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is mainly supported by strong cash generation and upbeat forward bookings/free-cash-flow guidance. It is held back by persistent losses with margin volatility and balance-sheet risk, plus a weak longer-term price trend and limited valuation support given the negative P/E and no dividend.

Positive Factors

Strong cash generation and free cash flow

Sustained operating cash flow (~$1.8B) and free cash flow (~$1.36B) provide durable financial flexibility. This cash generation funds AI/safety/CapEx investments, supports creator payouts and reduces near‑term funding dependence despite accounting losses, strengthening the company's ability to execute multi‑year initiatives.

Large and expanding user engagement and bookings growth

Rapid, broad-based engagement gains and strong bookings demonstrate durable platform scale. High DAUs and time spent create network effects, deepen monetization potential across cohorts, and support secular revenue growth independent of short‑term hits, strengthening long‑term monetization capacity.

Robust creator economy and developer monetization (DevEx)

A growing, well‑paid creator base underpins supply of high‑quality experiences and retention. Strong creator payouts and rising average creator earnings reinforce a self‑sustaining two‑sided marketplace that drives content variety, discovery, and recurring consumer spend over multiple quarters.

Negative Factors

Persistent net losses and severe margin volatility

Ongoing annual losses and dramatic gross margin deterioration signal weak underlying earnings power and margin instability. Sustained profitability remains uncertain as higher DevEx, AI and safety costs compress margins, limiting the company's ability to convert revenue growth into durable operating earnings.

Elevated leverage and thin equity cushion

High debt relative to a thin and negative equity base reduces financial resilience. With persistent losses, leverage constrains flexibility for opportunistic investment or absorption of shocks, increasing refinancing and solvency risk if cash generation weakens or capital markets tighten.

Reliance on viral hits creates revenue volatility

Significant revenue and engagement spikes tied to occasional viral games make results lumpy. Reliance on unpredictable hits complicates planning and may force conservative guidance; durable growth requires broader content discovery and steady hit frequency to stabilize bookings and margins.

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’s primary revenue model is built around its virtual currency, Robux. Users acquire Robux (typically through direct purchase, and also through certain subscriptions and prepaid cards), and then spend Robux on virtual items (e.g., avatar cosmetics) and paid access or in-experience purchases within developer-created experiences. Roblox records revenue largely from the sale of Robux, which is recognized over time as users spend Robux or as the company fulfills related performance obligations; unspent amounts are recorded as deferred revenue until recognized. A major revenue stream is the platform’s economic participation in these transactions: when users spend Robux in experiences or on marketplace items, Roblox retains a portion and shares the remainder with eligible creators and developers through its developer exchange and related programs, creating a two-sided marketplace where creator earnings and platform engagement reinforce each other. Additional revenue streams include advertising and sponsorships (such as immersive brand experiences, in-platform advertising placements, and other marketing solutions offered to advertisers and publishers), and subscription offerings (e.g., recurring plans that provide users with monthly Robux and/or benefits), which contribute to bookings and revenue depending on the arrangement. Key factors contributing to earnings include the size and engagement of the user base (driving Robux demand and spending), the health of the developer ecosystem (driving the supply and popularity of experiences and items), and distribution via major app and console ecosystems, where platform fees may apply to certain transactions.

Roblox Financial Statement Overview

Summary

Strong and improving cash generation (2025 operating cash flow ~$1.80B; free cash flow ~$1.36B) and durable revenue growth are key positives. However, persistent net losses, sharply deteriorated 2025 gross margin (~24% vs ~78% in 2024 per provided data), and a thin equity cushion with elevated leverage (debt-to-equity ~4.1x in 2025) materially weaken overall financial quality.

Income Statement

Revenue has grown consistently from 2020 to 2025, with 2025 showing solid top-line expansion (+9.6%). However, profitability remains a key weakness: the company has reported net losses every year, and 2025 margins deteriorated sharply (gross margin fell to ~24% vs ~78% in 2024), keeping operating results deeply negative. Overall, strong growth but still lacking earnings power and showing margin volatility.

Balance Sheet

The balance sheet shows meaningful leverage relative to a thin equity base. Debt-to-equity remains elevated despite improvement from the 2023 peak (about 4.1x in 2025 vs 8.2x in 2024 and 23.1x in 2023), and returns on equity are deeply negative due to ongoing losses. Asset base has expanded, but low equity cushion and negative profitability increase financial risk.

Cash Flow

Cash generation is a clear strength. Operating cash flow and free cash flow are strongly positive and improving, reaching about $1.80B and $1.36B in 2025, respectively, with positive free-cash-flow growth across most years (notably recovering strongly after 2022). While accounting losses persist, the business is producing substantial free cash flow, supporting liquidity and financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.89B	3.60B	2.80B	2.23B	1.92B
Gross Profit	3.82B	2.80B	2.15B	1.68B	1.42B
EBITDA	-802.17M	-670.25M	-910.95M	-761.86M	-421.40M
Net Income	-1.07B	-935.38M	-1.15B	-924.37M	-491.65M
Balance Sheet
Total Assets	9.56B	7.18B	6.17B	5.38B	4.56B
Cash, Cash Equivalents and Short-Term Investments	3.06B	2.41B	2.19B	2.98B	3.00B
Total Debt	1.64B	1.81B	1.76B	1.56B	1.23B
Total Liabilities	9.18B	6.97B	6.10B	5.07B	3.97B
Stockholders Equity	394.48M	221.45M	76.29M	306.03M	584.82M
Cash Flow
Free Cash Flow	1.35B	642.67M	124.01M	-58.37M	557.98M
Operating Cash Flow	1.80B	822.32M	458.18M	369.30M	659.11M
Investing Cash Flow	-1.39B	-852.07M	-2.83B	-441.05M	-146.82M
Financing Cash Flow	88.53M	65.89M	67.18M	43.64M	1.60B

Roblox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBLX, the sentiment is Negative. The current price of 58.27 is below the 20-day moving average (MA) of 63.27, below the 50-day MA of 68.74, and below the 200-day MA of 101.59, indicating a bearish trend. The MACD of -3.26 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBLX.

Roblox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	74 Outperform	$73.56B	18.20	22.14%	2.19%	5.69%	32.87%
EA	70 Outperform	$50.20B	145.12	11.05%	0.37%	-1.45%	-11.99%
BILI	65 Neutral	$11.11B	62.04	8.04%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RBLX	57 Neutral	$41.30B	―	-290.61%	―	32.70%	12.57%
TTWO	57 Neutral	$37.82B	-126.36	-126.41%	―	13.98%	-6.71%
PLTK	52 Neutral	$1.08B	-7.20	119.44%	9.98%	7.49%	-60.32%

Roblox Corporate Events

Roblox Announces Resignation of Chief People and Systems Officer

On February 24, 2026, Roblox announced that Arvind K. Chakravarthy, its Chief People and Systems Officer, plans to resign from his role effective March 6, 2026, to pursue other opportunities. The departure affects a key executive overseeing people and systems functions, potentially prompting organizational adjustments within Roblox’s leadership and internal operations.

The move comes as Roblox continues to scale its platform and workforce, making leadership continuity in human capital and systems management strategically important. Stakeholders will be watching how the company reallocates responsibilities and whether it appoints a successor to sustain momentum in culture, talent strategy, and internal infrastructure.

The most recent analyst rating on (RBLX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Reports Strong 2025 Growth and Strategic AI Investments

In a February 5, 2026 shareholder communication, Roblox reported that fiscal 2025 was a strong year, with revenue rising 36% year-over-year to $4.9 billion, bookings up 55% to $6.8 billion, and operating cash flow reaching $1.8 billion, driven by roughly 60 million additional daily active users between the fourth quarters of 2024 and 2025 and deeper user engagement. The company said its fourth-quarter 2025 results also exceeded expectations, highlighted by 69% growth in daily active users, an 88% increase in hours engaged, and 155% growth in free cash flow on 63% bookings growth, while its share of the global gaming content market reached 3.4%, underscoring its growing scale. Roblox outlined a strategic push to capture a larger adult audience—where usage and monetization are growing faster than among younger users—through support for “novel” higher-fidelity game genres and new platform technologies such as SLIM, Server Authority, and Texture Streaming. It also emphasized heavy investment in artificial intelligence and safety infrastructure, with over 400 AI models deployed for creation, discovery, and moderation, open-sourced safety tools, and a roadmap aimed at accelerating content creation, enhancing user discovery, and reinforcing safety and civility as a competitive advantage, which together are intended to support long-term growth and margin expansion.

The most recent analyst rating on (RBLX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.