Roblox (RBLX) AI Stock Analysis

• Market Cap: $88.53B
• Dividend Yield: N/A
• Average Volume (3M): 6.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 27.39%
• EPS Growth: 16.59%
• Country: US
• Employees: 2,474
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.41
• Shares Outstanding: 645,033,000
• 10 Day Avg. Volume: 5,437,892
• 30 Day Avg. Volume: 6,495,578
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 17.69
• Enterprise Value/Gross Profit: 22.68
• Enterprise Value/Ebitda: -103.90
• 1Y Price Target: $151.39
• Price Target Upside: 17.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 69 Neutral
• Price Target: $144.00 ▲(12.07% Upside)

Roblox's overall stock score is driven by strong earnings call results, showcasing significant growth in revenue, bookings, and user engagement. However, financial performance is hindered by ongoing net losses and a weak equity position, impacting the score. Technical analysis and valuation present a mixed picture, with neutral momentum and challenges in traditional valuation metrics. The company's future growth potential and strategic investments are key factors for investors.

Positive Factors

Revenue Growth

Roblox's strong revenue growth indicates robust demand and effective monetization strategies, supporting long-term business expansion.

User Engagement

Increasing daily active users and engagement levels highlight the platform's growing popularity, essential for sustained growth and market leadership.

Partnership Expansion

The expanded partnership with Mattel enhances Roblox's content offering, attracting more users and developers, which strengthens its competitive position.

Negative Factors

Profitability Challenges

Ongoing net losses and negative profit margins highlight challenges in achieving profitability, which could impact long-term financial health.

Regulatory Risks

Regulatory scrutiny over user safety could lead to increased compliance costs and reputational damage, affecting user trust and growth.

Weak Balance Sheet

A weak equity position and high leverage raise concerns about financial stability, potentially limiting future investment and growth opportunities.

Roblox Business Overview & Revenue Model

Company Description

Roblox Corporation (RBLX) is a leading online platform that allows users to create, share, and play games created by other users. Founded in 2004, the company operates primarily in the gaming and technology sectors, providing a unique environment where developers and players can interact. Roblox's core product is its gaming platform, which features millions of user-generated games and experiences across various genres, appealing primarily to children and teenagers. The platform also includes social features that allow users to connect and collaborate.

How the Company Makes Money

Roblox generates revenue through multiple key streams. The primary source of income is the sale of its virtual currency, Robux, which players use to purchase in-game items, accessories, and avatar customization options. Roblox takes a percentage of the transactions made on its platform, allowing developers to monetize their games through in-game purchases and advertisements. Additionally, Roblox earns revenue from subscription services like Roblox Premium, which offers users a monthly allowance of Robux and exclusive benefits. The company also benefits from partnerships with brands and developers, enabling them to create tailored experiences and promotional content within the platform, further enhancing its revenue potential. Overall, the combination of user spending on Robux, premium subscriptions, and partnerships forms the backbone of Roblox's revenue model.

Roblox Financial Statement Overview

Summary

Roblox demonstrates strong revenue growth and effective cash flow management, yet struggles with profitability and a weak equity position. There are positive signs in operational cash flows, but consistent net losses and negative equity present financial stability challenges.

Income Statement

Roblox has shown impressive revenue growth, with a notable increase in total revenue from $923.9 million in 2020 to $4.02 billion in TTM (Trailing-Twelve-Months). However, the company operates at a significant net loss, with a negative net profit margin, indicating challenges in achieving profitability. The gross profit margin remains strong, suggesting efficient cost management at the gross level despite overall losses. The EBIT and EBITDA margins are negative, reflecting ongoing operational losses.

Balance Sheet

The balance sheet reveals a low equity position, with stockholders' equity significantly decreasing over time, raising concerns about financial stability. The debt-to-equity ratio is problematic due to low equity, potentially indicating high leverage. However, the company maintains a healthy cash reserve, which may provide some buffer against financial instability.

Cash Flow

Roblox's cash flow from operations is strong, and the company has managed to generate positive free cash flow consistently, which is a positive indicator of financial health despite net losses. The growth in free cash flow suggests improving efficiency in capital management. The operating cash flow to net income ratio is favorable, highlighting effective cash flow management amid losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.02B	3.60B	2.80B	2.23B	1.92B	923.88M
Gross Profit	3.14B	2.80B	2.15B	1.68B	1.42B	683.99M
EBITDA	-685.14M	-670.25M	-910.95M	-761.86M	-421.40M	-220.54M
Net Income	-952.33M	-935.38M	-1.15B	-924.37M	-491.65M	-253.25M
Balance Sheet
Total Assets	7.85B	7.18B	6.17B	5.38B	4.56B	1.85B
Cash, Cash Equivalents and Short-Term Investments	2.63B	2.41B	2.19B	2.98B	3.00B	893.94M
Total Debt	1.79B	1.81B	1.76B	1.56B	1.23B	0.00
Total Liabilities	7.51B	6.97B	6.10B	5.07B	3.97B	2.08B
Stockholders Equity	353.22M	221.45M	76.29M	306.03M	584.82M	-252.39M
Cash Flow
Free Cash Flow	964.47M	642.67M	124.01M	-58.37M	557.98M	411.22M
Operating Cash Flow	1.08B	822.32M	458.18M	369.30M	659.11M	524.34M
Investing Cash Flow	-1.15B	-852.07M	-2.83B	-441.05M	-146.82M	-97.03M
Financing Cash Flow	96.79M	65.89M	67.18M	43.64M	1.60B	164.97M

Roblox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.49
• 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 128.49 is below the 20-day moving average (MA) of 130.07, below the 50-day MA of 130.03, and above the 200-day MA of 94.15, indicating a bullish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 25.88 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
NTES	―	$88.76B	19.69	24.36%	1.98%	2.86%	19.96%
EA	―	$50.12B	50.29	15.46%	0.38%	2.68%	-6.15%
RBLX	―	$88.53B	―	-401.21%	―	27.39%	16.59%
BILI	―	$12.71B	435.12	1.58%	―	22.89%	―
PLTK	―	$1.43B	16.49	―	10.53%	4.98%	-60.29%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	―	$46.41B	-10.51	-89.29%	―	7.33%	-7.46%

Roblox Corporate Events

Roblox CPO Manuel Bronstein Announces Resignation

On July 28, 2025, Manuel Bronstein, Roblox‘s Chief Product Officer, announced his resignation to pursue personal interests and entrepreneurial ventures. His employment will officially end on September 30, 2025, after which he will continue to provide advisory services until April 13, 2026, receiving compensation and continued vesting of equity awards during this period.

The most recent analyst rating on (RBLX) stock is a Hold with a $116.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Reports Strong Q2 2025 Growth Amid Losses

Roblox Corporation is a global platform that connects millions of people through shared virtual experiences, primarily in the gaming industry, known for its unique user-generated content ecosystem. In its second quarter of 2025, Roblox reported significant growth across various metrics, including a 21% increase in revenue to $1,080.7 million and a 51% rise in bookings to $1,437.6 million year-over-year. Despite these gains, the company reported a net loss of $278.4 million attributable to common stockholders. The platform also saw a 41% increase in average daily active users, reaching 111.8 million, and a 58% increase in hours engaged, totaling 27.4 billion. Roblox’s financial health is underscored by a strong cash flow, with net cash provided by operating activities up 32% year-over-year to $199.3 million. The company also reported a free cash flow of $176.7 million, marking a 58% increase from the previous year. Looking ahead, Roblox has raised its full-year guidance, projecting revenue between $4,390 million and $4,490 million and bookings between $5,870 million and $5,970 million for 2025. The company remains focused on strategic investments in infrastructure and the virtual economy to drive long-term growth.

Roblox Q2 2025 Earnings Call: Growth Amid Challenges

Roblox’s Q2 2025 earnings call painted a picture of robust growth, with the company reporting significant increases in revenue, bookings, and user engagement. The positive sentiment was fueled by the success of viral hits and an expanding ecosystem. However, the call also highlighted potential challenges, including leadership changes and a cautious outlook for Q4 due to uncertainties in sustaining current growth rates.

Roblox Announces Chief Product Officer Resignation

On July 28, 2025, Roblox announced the resignation of its Chief Product Officer, Manuel Bronstein, effective September 30, 2025, with plans to remain as an advisor until April 2026. The company also reported strong financial results for the second quarter of 2025, with significant increases in revenue, bookings, and daily active users, reflecting its strategic investments and growth potential in the gaming industry.

The most recent analyst rating on (RBLX) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.