Roblox (RBLX) AI Stock Analysis

• Market Cap: $48.66B
• Dividend Yield: N/A
• Average Volume (3M): 12.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 32.70%
• EPS Growth: 12.57%
• Country: US
• Employees: 2,474
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.45
• Shares Outstanding: 661,635,560
• 10 Day Avg. Volume: 9,979,510
• 30 Day Avg. Volume: 12,969,424
• PEG Ratio: -7.56
• Price to Book (P/B): 141.65
• Price to Sales (P/S): 11.43
• P/FCF Ratio: 41.23
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 10.04
• Enterprise Value/Gross Profit: 12.86
• Enterprise Value/Ebitda: -61.20
• 1Y Price Target: $112.50
• Price Target Upside: 63.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): -1.57
• Revenue Forecast (FY): $8.40B

• Rating: 57 Neutral
• Price Target: $71.00 ▲(3.41% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is mainly supported by strong cash generation and upbeat forward bookings/free-cash-flow guidance. It is held back by persistent losses with margin volatility and balance-sheet risk, plus a weak longer-term price trend and limited valuation support given the negative P/E and no dividend.

Positive Factors

Cash generation / FCF

Roblox’s substantial and improving operating and free cash flow (~$1.8B OCF, ~$1.36B FCF in 2025) provides durable liquidity to fund AI, safety and CapEx investments, support creator payouts, and maintain runway even while GAAP profitability remains elusive.

Durable revenue & bookings growth

Consistent high-single to double-digit top-line and bookings growth, plus management guidance for 22–26% bookings growth in 2026, indicate structural demand and monetization scale across expanding DAUs and a faster‑monetizing adult cohort, supporting multi‑period revenue resilience.

Creator ecosystem & scale

A deep two‑sided marketplace (creators earned >$1.5B; Q4 DevEx $477M) and massive engagement (peak concurrency ~45M, 35B hours Q4) create network effects that sustain content supply, user retention and monetization potential for years ahead.

Negative Factors

Margin volatility & persistent losses

Sharp gross‑margin deterioration and sustained annual net losses reflect structural profitability risk: higher DevEx rates, ongoing AI/safety workloads and increased infrastructure/CapEx compress margins and make sustainable operating profitability uncertain despite strong top-line growth.

Elevated leverage / thin equity cushion

Despite improvement, a high debt-to-equity ratio (~4.1x) and a thin equity base leave limited financial cushion. In the face of margin pressure or cost inflation, leverage limits flexibility for M&A, capex smoothing or larger cyclical shocks without raising further capital or cutting investments.

Safety, regulatory and legal risk

A formal lawsuit alleging inadequate moderation and age verification, combined with only ~45% global DAU age‑check penetration, creates sustained regulatory, compliance and reputational risk. Remediation will require ongoing investment and could trigger fines, restrictions or stricter oversight.

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 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

Strong and improving cash generation (2025 operating cash flow ~$1.80B; free cash flow ~$1.36B) and durable revenue growth are key positives. However, persistent net losses, sharply deteriorated 2025 gross margin (~24% vs ~78% in 2024 per provided data), and a thin equity cushion with elevated leverage (debt-to-equity ~4.1x in 2025) materially weaken overall financial quality.

Income Statement

Revenue has grown consistently from 2020 to 2025, with 2025 showing solid top-line expansion (+9.6%). However, profitability remains a key weakness: the company has reported net losses every year, and 2025 margins deteriorated sharply (gross margin fell to ~24% vs ~78% in 2024), keeping operating results deeply negative. Overall, strong growth but still lacking earnings power and showing margin volatility.

Balance Sheet

The balance sheet shows meaningful leverage relative to a thin equity base. Debt-to-equity remains elevated despite improvement from the 2023 peak (about 4.1x in 2025 vs 8.2x in 2024 and 23.1x in 2023), and returns on equity are deeply negative due to ongoing losses. Asset base has expanded, but low equity cushion and negative profitability increase financial risk.

Cash Flow

Cash generation is a clear strength. Operating cash flow and free cash flow are strongly positive and improving, reaching about $1.80B and $1.36B in 2025, respectively, with positive free-cash-flow growth across most years (notably recovering strongly after 2022). While accounting losses persist, the business is producing substantial free cash flow, supporting liquidity and financial flexibility.

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	1.36B	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

• Technical Analysis Sentiment: Neutral
• Last Price: 68.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 68.66 is above the 20-day moving average (MA) of 65.98, below the 50-day MA of 74.17, and below the 200-day MA of 102.93, indicating a neutral trend. The MACD of -2.16 indicates Negative momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 88.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RBLX.

Roblox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	74 Outperform	$70.33B	15.77	22.36%	2.19%	5.69%	32.87%
EA	70 Outperform	$50.19B	75.30	10.03%	0.37%	-1.45%	-11.99%
BILI	65 Neutral	$11.76B	108.77	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RBLX	57 Neutral	$48.66B	-44.54	-345.84%	―	32.70%	12.57%
TTWO	57 Neutral	$39.16B	-9.45	-86.22%	―	13.98%	-6.71%
PLTK	54 Neutral	$1.17B	-5.66	―	9.98%	7.49%	-60.32%

Roblox Corporate Events

Roblox Announces Resignation of Chief People and Systems Officer

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 and systems functions, potentially prompting organizational adjustments within Roblox’s leadership and internal operations.

The move comes as Roblox continues to scale its platform and workforce, making leadership continuity in human capital and systems management strategically important. Stakeholders will be watching how the company reallocates responsibilities and whether it appoints a successor to sustain momentum in culture, talent strategy, and internal infrastructure.

The most recent analyst rating on (RBLX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Reports Strong 2025 Growth and Strategic AI Investments

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 roughly 60 million additional daily active users between the fourth quarters of 2024 and 2025 and deeper user engagement. The company said its fourth-quarter 2025 results also exceeded expectations, highlighted by 69% growth in daily active users, an 88% increase in hours engaged, and 155% growth in free cash flow on 63% bookings growth, while its share of the global gaming content market reached 3.4%, underscoring its growing scale. Roblox outlined a strategic push to capture a larger adult audience—where usage and monetization are growing faster than among younger users—through support for “novel” higher-fidelity game genres and new platform technologies such as SLIM, Server Authority, and Texture Streaming. It also emphasized heavy investment in artificial intelligence and safety infrastructure, with over 400 AI models deployed for creation, discovery, and moderation, open-sourced safety tools, and a roadmap aimed at accelerating content creation, enhancing user discovery, and reinforcing safety and civility as a competitive advantage, which together are intended to support long-term growth and margin expansion.

The most recent analyst rating on (RBLX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.