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Roblox
(NYSE:RBLX)
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Rating:54Neutral
Price Target:
$36.00
▼(-24.29% Downside)
Action:Reiterated
Date:08/01/26
The score is anchored by strong and improving cash generation and meaningful revenue scale-up, but is held back by persistent operating/net losses and a thin equity cushion. Technically, the stock is in a clear downtrend (price far below major moving averages), and the latest earnings call added near-term risk via reduced full-year guidance and expected DAU/bookings headwinds from safety and communication changes.
Positive Factors
Cash generation
Roblox’s operating cash flow and free cash flow have ramped materially and remain strongly positive, providing durable internal funding for product investment, creator incentives, and buybacks. Large FCF (~0.83x of net loss) gives flexibility versus peers, easing reliance on capital markets while the company works toward sustained profitability.
Negative Factors
Persistent net losses
Despite strong cash flow, Roblox remains materially unprofitable on an accounting basis with deep negative margins. Continued operating and net losses constrain retained earnings, depress returns on equity, and limit the company’s buffer against macro shocks or execution setbacks unless profitable operating leverage is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Roblox’s operating cash flow and free cash flow have ramped materially and remain strongly positive, providing durable internal funding for product investment, creator incentives, and buybacks. Large FCF (~0.83x of net loss) gives flexibility versus peers, easing reliance on capital markets while the company works toward sustained profitability.
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
$25.39B
Dividend YieldN/A
Average Volume (3M)9.32M
Price to Earnings (P/E)―
Beta (1Y)1.30
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. Volume6,515,637
30 Day Avg. Volume9,323,820
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$47.82Price Target Upside0.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)-1.44
Revenue Forecast (FY)$7.01B
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:Nov 11, 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 | -784.38M | -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
Negative
47.55
Price Trends
47.23
Negative
49.47
Negative
65.57
Negative
Market Momentum
-3.96
Positive
37.63
Neutral
34.55
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 47.55 is above the 20-day moving average (MA) of 43.25, above the 50-day MA of 47.23, and below the 200-day MA of 65.57, indicating a bearish trend. The MACD of -3.96 indicates Positive momentum. The RSI at 37.63 is Neutral, neither overbought nor oversold. The STOCH value of 34.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBLX.
Roblox Risk Analysis
Roblox disclosed 51 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $78.12B | 15.45 | 21.64% | 2.53% | 8.50% | 7.29% | |
72 Outperform | $52.97B | 59.12 | 16.66% | 0.36% | 1.72% | -17.04% | |
65 Neutral | $7.40B | 34.62 | 8.04% | ― | 11.20% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $45.44B | -139.83 | -9.12% | ― | 15.30% | 92.77% | |
54 Neutral | $25.39B | -24.85 | -288.77% | ― | 41.33% | 0.75% | |
50 Neutral | $902.05M | -3.45 | 82.92% | 10.87% | 5.84% | -421.33% |
* Communication Services Sector Average
RBLX
Roblox
37.95
-79.39
-67.66%
EA
Electronic Arts
209.70
35.72
20.53%
NTES
NetEase
122.65
-3.50
-2.77%
TTWO
Take-Two
241.91
9.73
4.19%
BILI
Bilibili
17.07
-7.78
-31.31%
PLTK
Playtika Holding
2.52
-0.92
-26.72%
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...
Executive/Board ChangesShareholder Meetings
Roblox Shareholders Back Leadership, Pay, and Auditor Choices
Positive
May 29, 2026
At its May 28, 2026 annual meeting of stockholders, Roblox reported that 92.6% of the voting power was represented, with Class A shares carrying one vote and Class B shares 20 votes each, underscoring the company’s dual-class share structure...
Business Operations and StrategyStock Buyback
Roblox Launches First $3 Billion Share Repurchase Program
Positive
May 19, 2026
On May 19, 2026, Roblox Corp. said its board authorized an inaugural share repurchase program of up to $3 billion of Class A common stock, with an initial intent to buy back up to $1 billion over the next 12 months. Management framed the move as a...
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.