Roblox (RBLX) AI Stock Analysis

• Market Cap: $95.15B
• Dividend Yield: N/A
• Average Volume (3M): 8.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• 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: 7,450,555
• 30 Day Avg. Volume: 8,613,464
• 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: 0.75
• Enterprise Value/Revenue: 17.69
• Enterprise Value/Gross Profit: 22.68
• Enterprise Value/Ebitda: -103.90
• 1Y Price Target: $148.04
• Price Target Upside: 9.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 72 Outperform
• Price Target: $139.00 ▲(2.67% Upside)

Roblox's overall stock score is driven by strong user engagement and growth prospects, offset by challenges in profitability and valuation. Technical indicators are favorable, but leadership changes and a negative P/E ratio pose risks.

Positive Factors

Revenue Growth

Roblox's strong revenue growth highlights its expanding market presence and successful monetization strategy, driven by increased user engagement and platform adoption.

User Engagement

The significant increase in daily active users indicates robust platform engagement, which is crucial for sustaining long-term growth and attracting developers and advertisers.

Cash Flow Management

Effective cash flow management ensures Roblox can reinvest in growth opportunities and maintain financial stability despite ongoing net losses.

Negative Factors

Profitability Challenges

Persistent net losses and negative profit margins pose challenges to achieving profitability, potentially impacting long-term financial health and investor confidence.

Leadership Transition

Leadership changes can disrupt strategic continuity and execution, affecting company stability and potentially delaying key initiatives.

Legal Challenges

Ongoing legal challenges could result in reputational damage and financial liabilities, impacting Roblox's ability to maintain trust and grow its user base.

Roblox Business Overview & Revenue Model

Company Description

Roblox Corporation (RBLX) is a leading online entertainment platform that allows users to create, share, and play games and experiences built by a global community of developers. Operating in the digital entertainment and gaming industry, Roblox provides a platform where millions of user-generated 3D experiences are created using its proprietary game development tools. The platform is available on various devices, including computers, consoles, and mobile devices, making it accessible to a broad audience.

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, 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: 135.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 135.38 is above the 20-day moving average (MA) of 128.09, above the 50-day MA of 124.30, and above the 200-day MA of 83.51, indicating a bullish trend. The MACD of 3.69 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.61 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	80 Outperform	97.27B	21.30	22.87%	1.82%	2.86%	19.96%
EA	77 Outperform	43.43B	43.20	17.13%	0.44%	2.68%	-6.15%
RBLX	72 Outperform	$95.15B	―	-401.21%	―	27.39%	16.59%
BILI	68 Neutral	11.41B	385.95	-9.55%	―	22.89%	0.00%
PLTK	59 Neutral	1.30B	15.57	-98.41%	11.56%	4.98%	-60.29%
TTWO	55 Neutral	46.21B	-10.47	-121.49%	―	7.33%	-7.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Roblox Corporate Events

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.

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.