Roblox (RBLX)
NYSE:RBLX
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Roblox
(NYSE:RBLX)
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Rating:54Neutral
Price Target:
$46.00
▼(-23.77% Downside)
Action:ReiteratedDate:05/02/26
The score is held up by strong and improving free cash flow and high gross margins, but is constrained by ongoing operating/net losses and a sharp technical downtrend (price far below key moving averages with weak momentum). The latest earnings call adds a mixed outlook: strong Q1 execution, but materially reduced full-year guidance and near-term DAU/bookings headwinds tied to safety and discovery changes.
Positive Factors
Strong cash generation and FCF
Roblox's sustained, multi-billion dollar operating cash flow and rising free cash flow provide durable internal funding for product development, AI and safety investments, and creator incentives. Robust cash generation reduces refinancing risk and gives management flexibility while profitability is still developing.
Negative Factors
Persistent operating and net losses
Ongoing operating and net losses mean Roblox has yet to demonstrate sustainable profitability; negative margins depress returns and make the company reliant on cash generation. If FCF weakens, the business could face pressure to cut investments or raise capital, risking growth or dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF
Roblox's sustained, multi-billion dollar operating cash flow and rising free cash flow provide durable internal funding for product development, AI and safety investments, and creator incentives. Robust cash generation reduces refinancing risk and gives management flexibility while profitability is still developing.
Read all positive factors
Roblox (RBLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.45B
Dividend YieldN/A
Average Volume (3M)8.38M
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth38.10%
EPS Growth-16.91%
CountryUS
Employees2,474
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-1.58
Shares Outstanding668,724,700
10 Day Avg. Volume8,195,637
30 Day Avg. Volume8,380,871
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 Cap1.00
Enterprise Value/Revenue5.94
Enterprise Value/Gross Profit7.58
Enterprise Value/Ebitda-33.34
Forecast
1Y Price Target
$70.84Price Target Upside17.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering25
EPS Forecast (FY)-1.49
Revenue Forecast (FY)$7.62B
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 primarily monetizes through the sale and use of its virtual currency, Robux, which users purchase (or receive via subscriptions) and then spend on virtual items and paid access/transactions within experiences on the platform. When users buy...
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong operating results and ambitious long-term investments alongside clear near-term headwinds. Q1 showed robust revenue (+39%), bookings (+43%), exceptional cash-flow improvements, meaningful payer and engagement growth, expanding content diversity, and substantial AI/technology progress. However, strategic safety changes (global age checks and communication banding), discovery adjustments, and resulting reductions in app-store ratings have produced top-of-funnel weakness, a slowdown in DAU growth, and forced management to materially lower full-year bookings and revenue guidance. Management emphasized confidence in the long-term payoff from safety, creator incentives (higher DevEx for 18+), and platform innovation, but acknowledged continued short-term friction and margin pressure.Positive Updates
Strong Q1 Top-Line Growth
Revenue of $1.4B, up 39% year-over-year; Bookings of $1.7B, up 43% year-over-year (noted as roughly twice the company’s long-term trajectory).
Negative Updates
Full-Year Guidance Reduction
Revenue guidance cut to +20% to +25% for the full year; bookings guidance materially reduced to +8% to +12% (prior bookings guide cited at 22%–26%), reflecting expected continuation of safety-related headwinds.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Top-Line Growth
Revenue of $1.4B, up 39% year-over-year; Bookings of $1.7B, up 43% year-over-year (noted as roughly twice the company’s long-term trajectory).
Read all positive updates
Company Guidance
Roblox lowered full‑year guidance after a strong Q1 (revenue $1.4B, +39% YoY; bookings $1.7B, +43% YoY) and robust cash generation (operating cash flow $629M; free cash flow $596M, +4,240% YoY) to now expect full‑year revenue growth of 20–25% and bookings growth of 8–12%, assuming DAUs continue to contract into Q2 and return to sequential growth in Q3 (no major viral hits assumed). Management said engagement and monetization remain stable — Q1 DAUs 132M (+35% YoY), monthly unique payers 31M (+52%), and hours 31B (+43%) — but age‑check rollout (51% of global DAUs age‑checked; 65% U.S.; 70% Australia) and related communication/discovery impacts are driving the bookings headwind; over‑18 users are roughly a quarter of age‑checked DAUs. The bookings revision will pressure margins largely via fixed‑cost deleveraging (about one‑quarter of the margin impact attributable to the increased DevEx for 18+), CapEx guidance is unchanged, and management expects back‑half bookings to be low‑single‑digit given comps.Roblox Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.30B | 4.89B | 3.60B | 2.80B | 2.23B | 1.92B |
| Gross Profit | 4.16B | 3.82B | 2.80B | 2.15B | 1.68B | 1.42B |
| EBITDA | -944.43M | -802.17M | -670.25M | -910.95M | -761.86M | -421.40M |
| Net Income | -1.10B | -1.07B | -935.38M | -1.15B | -924.37M | -491.65M |
Balance Sheet | ||||||
| Total Assets | 9.83B | 9.56B | 7.18B | 6.17B | 5.38B | 4.56B |
| Cash, Cash Equivalents and Short-Term Investments | 3.20B | 3.06B | 2.41B | 2.19B | 2.98B | 3.00B |
| Total Debt | 625.00M | 1.64B | 1.81B | 1.76B | 1.56B | 1.23B |
| Total Liabilities | 9.42B | 9.18B | 6.97B | 6.10B | 5.07B | 3.97B |
| Stockholders Equity | 432.00M | 394.48M | 221.45M | 76.29M | 306.03M | 584.82M |
Cash Flow | ||||||
| Free Cash Flow | 1.64B | 1.35B | 642.67M | 124.01M | -58.37M | 557.98M |
| Operating Cash Flow | 1.98B | 1.80B | 822.32M | 458.18M | 369.30M | 659.11M |
| Investing Cash Flow | -2.03B | -1.39B | -852.07M | -2.83B | -441.05M | -146.82M |
| Financing Cash Flow | 83.00M | 88.53M | 65.89M | 67.18M | 43.64M | 1.60B |
Roblox Technical Analysis
Neutral
60.34
Price Trends
61.04
Negative
71.93
Negative
97.20
Negative
Market Momentum
-0.48
Negative
54.29
Neutral
79.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBLX, the sentiment is Neutral. The current price of 60.34 is above the 20-day moving average (MA) of 56.76, below the 50-day MA of 61.04, and below the 200-day MA of 97.20, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 79.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $71.72B | 24.60 | 22.14% | 2.19% | 7.06% | 14.10% | |
69 Neutral | $50.25B | 57.46 | 14.19% | 0.37% | 1.45% | -17.04% | |
65 Neutral | $9.03B | 35.55 | 8.04% | ― | 13.28% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $41.11B | -126.36 | -126.41% | ― | 20.34% | -4.86% | |
54 Neutral | $31.45B | -40.91 | -290.61% | ― | 38.10% | -16.91% | |
50 Neutral | $1.35B | -1.20 | 119.44% | 9.98% | 8.08% | -224.83% |
* Communication Services Sector Average
RBLX
Roblox
43.76
-26.29
-37.53%
EA
Electronic Arts
200.79
45.79
29.55%
NTES
NetEase
118.37
14.37
13.81%
TTWO
Take-Two
222.00
-3.45
-1.53%
BILI
Bilibili
22.37
4.48
25.04%
PLTK
Playtika Holding
3.57
-1.08
-23.24%
Roblox Corporate Events
Business Operations and StrategyFinancial Disclosures
Roblox Posts Strong Q1 2026 Growth and Engagement
Positive
Apr 30, 2026
In the first quarter of 2026, Roblox reported strong growth, with revenue up 39% year over year to $1.4 billion, bookings up 43% to $1.7 billion, operating cash flow of $629 million, and free cash flow of $596 million. The company’s daily ac...
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.