Roblox Corp. (RBLX)
NYSE:RBLX
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Roblox
(NYSE:RBLX)
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Rating:52Neutral
Price Target:
$58.00
▲(4.34% Upside)
Action:ReiteratedDate:03/20/26
The score is primarily held back by weak financial quality (ongoing losses, margin volatility, and balance-sheet leverage) and bearish technicals (price below major moving averages with negative MACD). Offsetting these are strong and improving free cash flow and a constructive earnings-call outlook for >20% bookings growth and higher free cash flow, though near-term margins face investment and DevEx headwinds.
Positive Factors
Free cash flow generation
Roblox’s sizable and improving free cash flow (operating cash flow ~$1.8B, FCF ~$1.36B in 2025) is a durable financial strength. Persistent cash generation funds strategic investments (AI, safety, GPUs), supports developer payouts, reduces reliance on external financing and increases operational optionality over 2–6 months.
Negative Factors
Persistent net losses
Annual accounting losses despite revenue growth signal structural profitability challenges. Continued negative earnings constrain return on equity, raise the bar for margin recovery, and mean long-term shareholder value depends on sustained operating leverage or material margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Roblox’s sizable and improving free cash flow (operating cash flow ~$1.8B, FCF ~$1.36B in 2025) is a durable financial strength. Persistent cash generation funds strategic investments (AI, safety, GPUs), supports developer payouts, reduces reliance on external financing and increases operational optionality over 2–6 months.
Read all positive factors
Roblox (RBLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.40B
Dividend YieldN/A
Average Volume (3M)8.33M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth32.70%
EPS Growth12.57%
CountryUS
Employees2,474
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.45
Shares Outstanding661,635,560
10 Day Avg. Volume8,382,694
30 Day Avg. Volume8,331,296
Financial Highlights & Ratios
PEG Ratio-7.56
Price to Book (P/B)141.65
Price to Sales (P/S)11.43
P/FCF Ratio41.30
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue8.45
Enterprise Value/Gross Profit10.82
Enterprise Value/Ebitda-51.51
Forecast
1Y Price Target
$107.86Price Target Upside94.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)-1.63
Revenue Forecast (FY)$8.41B
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 app...
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 cosm...
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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call highlights a very strong 2025 with outsized revenue, bookings, engagement, creator payouts, international growth, and clear technical/AI momentum. Management provided constructive 2026 guidance (22%–26% bookings growth) while acknowledging conservative assumptions (no assumed viral hit) and planned investments that may temper near‑term margin expansion. Key risks include guidance sensitivity to viral content, higher DevEx and investment‑driven margin pressure, and ongoing CapEx/cost inflation. Overall, positives materially outweigh the negatives.Positive Updates
Spectacular Full-Year Revenue and Bookings Outperformance
FY2025 revenue grew 36% year‑over‑year and bookings grew 55% year‑over‑year, materially exceeding prior guidance.
Negative Updates
Guidance Conservatism and Q1 Sequential Decline
Company cautioned guidance is conservative without assuming another massive viral hit; Q1 bookings guide implies a sequential decline (>20% sequential slowdown in bookings guidance) which spurred investor questions.
Read all updates
Q4-2025 Updates
Positive
Negative
Spectacular Full-Year Revenue and Bookings Outperformance
FY2025 revenue grew 36% year‑over‑year and bookings grew 55% year‑over‑year, materially exceeding prior guidance.
Read all positive updates
Company Guidance
Roblox guided 2026 bookings growth of 22%–26% (reiterating conviction to grow >20%) and said this outlook does not assume another viral hit; at the midpoint it expects ~26% year‑over‑year free cash flow growth, a slight uptick in CapEx to land GPUs, and margins that are flat at the high end of the bookings range and slightly down at the low end (reflecting the full‑year impact of the DevEx rate increase and investments in AI, safety marketing, creators and infrastructure). The guidance is informed by product signals — completed global age‑check rollout in January with ~45% global DAU penetration (≈60% in early markets), an 18+ cohort growing >50% that monetizes ~40% higher — and by 2025 momentum (2025 revenue +36%, bookings +55%; Q4 revenue $1.4B +43% YoY, Q4 bookings $2.2B +63% YoY, Q4 DAUs +69% YoY, Q4 engagement 35B hours +88% YoY, nearly 37M quarterly monthly unique payers, DevEx $477M Q4 and creators earned >$1.5B in 2025); the company plans to move to quarter‑by‑quarter guidance in 2027.Roblox Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
34
Negative
Cash Flow
76
Positive
| 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
Positive
55.59
Price Trends
61.49
Negative
73.46
Negative
98.09
Negative
Market Momentum
-1.67
Negative
48.24
Neutral
50.08
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 55.59 is below the 20-day moving average (MA) of 56.46, below the 50-day MA of 61.49, and below the 200-day MA of 98.09, indicating a neutral trend. The MACD of -1.67 indicates Negative momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 50.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBLX.
Roblox Risk Analysis
Roblox disclosed 52 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $69.92B | 18.20 | 22.14% | 2.19% | 5.69% | 32.87% | |
70 Outperform | $50.74B | 145.12 | 11.05% | 0.37% | -1.45% | -11.99% | |
65 Neutral | $9.81B | 62.04 | 8.04% | ― | 16.84% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $36.49B | -126.36 | -126.41% | ― | 13.98% | -6.71% | |
52 Neutral | $39.40B | ― | -290.61% | ― | 32.70% | 12.57% | |
50 Neutral | $1.19B | -7.20 | 119.44% | 9.98% | 7.49% | -60.32% |
* Communication Services Sector Average
RBLX
Roblox
57.66
0.75
1.32%
EA
Electronic Arts
202.56
57.68
39.81%
NTES
NetEase
113.41
16.41
16.92%
TTWO
Take-Two
201.36
-11.59
-5.44%
BILI
Bilibili
24.47
7.46
43.86%
PLTK
Playtika Holding
3.20
-1.47
-31.46%
Roblox Corporate Events
Business Operations and StrategyExecutive/Board Changes
Roblox Adds Veteran Gaming Executive Dennis Durkin to Board
Positive
Mar 20, 2026
On March 19, 2026, Roblox expanded its Board of Directors and appointed veteran gaming and technology executive Dennis Durkin, formerly CFO and President of Emerging Businesses at Activision Blizzard, as an independent Class II director. He joined...
Business Operations and StrategyExecutive/Board Changes
Roblox Announces Resignation of Chief People and Systems Officer
Negative
Mar 2, 2026
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...
Business Operations and StrategyFinancial Disclosures
Roblox Reports Strong 2025 Growth and Strategic AI Investments
Positive
Feb 5, 2026
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 ...
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.