Roblox (RBLX) AI Stock Analysis

• Market Cap: $70.26B
• Dividend Yield: N/A
• Average Volume (3M): 8.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 30.24%
• EPS Growth: 27.61%
• Country: US
• Employees: 2,474
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.32
• Shares Outstanding: 629,990,660
• 10 Day Avg. Volume: 7,799,877
• 30 Day Avg. Volume: 8,072,163
• PEG Ratio: -0.22
• Price to Book (P/B): 55.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -290.40
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: -5.38
• 1Y Price Target: $87.43
• Price Target Upside: -15.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 58 Neutral
• Price Target: $104.00 ▲(0.40%Upside)

Roblox's strong revenue growth and positive cash flow are significant strengths, supporting its operational and strategic goals. Technical indicators are favorable, indicating potential stock price appreciation. However, profitability issues and valuation concerns present challenges. The positive earnings call sentiment and strategic focus on user engagement and platform quality contribute positively to the score.

Positive Factors

Growth Potential

Roblox is seen as the most compelling growth opportunity in the video game sector due to its large and expanding user base and potential to unlock additional profit drivers.

Monetization Opportunities

Roblox is taking share of video game user time and spend, with significant monetization opportunities through new revenue streams in advertising and commerce.

User Engagement

Grow A Garden has achieved an historic level of player engagement, reaching 20M concurrent players each weekend.

Negative Factors

Advertising Revenue

Ad revenues for Roblox won’t be material.

Investor Expectations

The viral success of 'Grow A Garden' is expected to boost performance, making investor expectations appear too conservative.

Search & Discovery

Roblox's Search & Discovery has significant potential to improve, enhancing consumer spending through refined predictive models.

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 primarily generates revenue through the sale of its virtual currency known as Robux, which users purchase with real money. Robux is used to buy in-game items, accessories, and experiences within the Roblox platform. A significant portion of Roblox's revenue also comes from its Developer Exchange Program, where developers can earn real-world currency by creating popular games and experiences that attract more users. Additional revenue streams include advertising partnerships and licensing deals that expand the reach and monetization potential of the platform. Roblox's business model is heavily reliant on user engagement and the continuous influx of new content from its developer community.

Roblox Financial Statement Overview

Summary

Roblox demonstrates strong revenue growth and effective cash flow management, crucial for its ongoing operations and expansion. However, profitability issues and occasional negative equity signal potential risks, indicating a need for better margin control and balance sheet stabilization.

Income Statement

Roblox's revenue has shown consistent growth, with a noticeable increase from 2020 to TTM 2025. Despite this growth, the company is facing profitability challenges, with negative net income and EBIT margins across periods. The gross profit margin remains healthy, indicating good control over direct costs.

Balance Sheet

The balance sheet reflects strong liquidity with significant cash and short-term investments. However, the equity ratio is low, and the company has been operating with negative stockholders' equity in some periods, which raises concerns about financial stability. The debt-to-equity ratio is not meaningful due to negative equity values.

Cash Flow

Operating cash flow has been positive and growing, indicating effective cash generation from operations. Free cash flow is also positive, showing good capital expenditure management. The operating cash flow to net income ratio is strong, reflecting healthy cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.84B	3.60B	2.80B	2.23B	1.92B	923.88M
Gross Profit	2.99B	2.80B	2.15B	1.68B	1.42B	683.99M
EBITDA	-614.55M	-670.25M	-910.95M	-761.86M	-421.40M	-220.54M
Net Income	-879.84M	-935.38M	-1.15B	-924.37M	-491.65M	-253.25M
Balance Sheet
Total Assets	7.45B	7.18B	6.17B	5.38B	4.56B	1.85B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.41B	2.19B	2.98B	3.00B	893.94M
Total Debt	1.81B	1.81B	1.76B	1.56B	1.18B	344.83M
Total Liabilities	7.16B	6.97B	6.10B	5.07B	3.97B	2.08B
Stockholders Equity	310.69M	221.45M	76.29M	306.03M	584.82M	-252.39M
Cash Flow
Free Cash Flow	876.95M	642.67M	124.01M	-58.37M	557.98M	411.22M
Operating Cash Flow	1.03B	822.32M	458.18M	369.30M	659.11M	524.34M
Investing Cash Flow	-808.78M	-852.07M	-2.83B	-441.05M	-146.82M	-97.03M
Financing Cash Flow	74.20M	65.89M	67.18M	43.64M	1.60B	164.97M

Roblox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 103.59 is above the 20-day moving average (MA) of 100.27, above the 50-day MA of 86.24, and above the 200-day MA of 63.36, indicating a bullish trend. The MACD of 5.13 indicates Positive momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBLX.

Roblox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TME	76 Outperform	$29.34B	22.72	14.37%	0.92%	4.59%	83.27%
BILI	71 Outperform	$8.98B	―	-4.29%	―	21.11%	87.93%
EA	70 Outperform	$39.04B	36.59	16.13%	0.49%	-0.81%	-9.28%
Sector *	66 Neutral	¥373.55B	13.58	2.32%	2.51%	5.41%	-17.67%
RBLX	58 Neutral	$70.26B	―	-460.30%	―	30.24%	27.61%
TTWO	57 Neutral	$42.60B	―	-114.76%	―	5.31%	-15.57%
PLTK	54 Neutral	$1.86B	13.23	-220.61%	8.06%	1.64%	-32.31%

Roblox Corporate Events

Roblox CFO Michael Guthrie Resigns Amid Management Changes

On June 30, 2025, Roblox Corporation announced the resignation of its Chief Financial Officer, Michael Guthrie, effective the same day. As part of his departure, the company and Guthrie agreed to amend his Separation and Transition Agreement, affecting the vesting of his performance-based restricted stock units (RSUs). Specifically, certain RSUs from awards granted in 2023 and 2024 will vest based on company performance, with remaining RSUs being canceled. This adjustment reflects the company’s ongoing management transitions and could impact its financial planning and stakeholder relations.

The most recent analyst rating on (RBLX) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Appoints Naveen Chopra as New CFO

Roblox Corporation announced the appointment of Naveen Chopra as its new Chief Financial Officer, effective June 30, 2025. Chopra, with extensive experience in financial and strategic leadership from companies like Paramount and Amazon, will oversee Roblox’s financial operations. This strategic move is expected to bolster Roblox’s growth and innovation in the gaming and entertainment sectors, as Chopra’s background aligns with the company’s vision of connecting and empowering a global audience. Michael Guthrie, the outgoing CFO, will remain until June 30, 2025, to ensure a smooth transition.

The most recent analyst rating on (RBLX) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Reincorporates to Nevada After Stockholder Meeting

On May 29, 2025, Roblox Corporation held its 2025 Annual Meeting of Stockholders, where key decisions were made including the election of directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the accounting firm. Additionally, the stockholders approved the company’s reincorporation from Delaware to Nevada, effective May 30, 2025. This reincorporation did not alter the company’s business operations, management, or financial standing but did result in changes to stockholder rights and governance under Nevada law.

The most recent analyst rating on (RBLX) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Reports Strong Q1 2025 Financial Growth

Roblox Corporation reported substantial year-over-year growth in its first quarter of 2025, with revenue increasing by 29% and bookings by 31%. The company exceeded its guidance across key metrics, driven by growth initiatives in platform monetization and creator earnings. Roblox’s financial results highlight a strong performance in all regions, with record levels of cash flow from operations and free cash flow. The company also provided guidance for the second quarter and full year 2025, projecting continued growth in revenue and bookings despite expected net losses. The announcement underscores Roblox’s strategic focus on enhancing its virtual economy and operational efficiencies, which are expected to benefit stakeholders, including developers and creators.