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Roblox (RBLX)
NYSE:RBLX
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Roblox (RBLX) AI Stock Analysis

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RBLX

Roblox

(NYSE:RBLX)

Rating:72Outperform
Price Target:
$139.00
▲(8.20% 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
Advertising Potential
Roblox Moments, a short-form video app for Roblox content, could be an advertising tailwind due to the massive opportunity suggested by over 1 trillion lifetime Roblox views on YouTube.
Developer Revenue Share
The first increase in developer revenue share in eight years is likely to help scale the business faster by expanding its developer base and creative community.
User Engagement
Roblox Corp. set a new peak user record, indicating strong engagement and user interest in the platform.
Negative Factors
Cost Management
Margins are being lowered despite raising 4Q bookings, indicating potential cost management challenges.
Profitability Challenge
Despite raising 4Q bookings, the EBITDA margin adjustment indicates a potential challenge in maintaining high profitability.

Roblox (RBLX) vs. SPDR S&P 500 ETF (SPY)

Roblox Business Overview & Revenue Model

Company DescriptionRoblox 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 MoneyRoblox 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 Key Performance Indicators (KPIs)

Any
Any
Total Daily Active Users
Total Daily Active Users
Monitors the number of users engaging with Roblox daily, indicating the platform's popularity, user retention, and potential for monetization.
Chart InsightsRoblox's daily active users have surged to 111.8 million, marking a 41% increase year-on-year, driven by strong growth in the APAC region and viral experiences like 'Grow a Garden.' Despite this momentum, the company is cautious about Q4, citing leadership changes and infrastructure challenges. However, the robust engagement and increased monthly payers underscore the platform's expanding ecosystem, with revenue and bookings growth prompting an optimistic fiscal year outlook. Investors should watch for how Roblox manages these growth challenges to sustain its upward trajectory.
Data provided by:Main Street Data

Roblox Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call was very positive, highlighting significant revenue and bookings growth, record user engagement, and strong developer earnings. The introduction of new features and partnerships further supports future growth. While there are some uncertainties and executive transitions noted, the positive aspects significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Strong Revenue and Bookings Growth
Revenue for Q2 2025 was $1.1 billion, up 21% year-on-year. Bookings were $1.4 billion, up 51% year-on-year, with strong growth across all regions including APAC at 75%.
Record Daily Active Users and Engagement
Q2 DAUs reached 111.8 million, up 41% year-on-year, with significant growth in APAC at 76%. Hours engaged were 27.4 billion, up 58% year-on-year.
Developer Exchange and Creator Earnings
DevEx was $316.4 million, up 52% year-on-year, setting a new all-time record. Top 1,000 creators averaged nearly $1 million in Roblox earnings over the last 12 months.
Introduction of New Features and Partnerships
Launched features like Trusted Connections, IP License Manager, and integrated Rewarded Video with Google. Partners include Lionsgate, Netflix, and Sega.
Raised Fiscal Year 2025 Guidance
Raised full-year 2025 revenue guidance to 22%-25% growth and bookings guidance to 34%-37% growth.
Negative Updates
Executive Transition
Manuel Bronstein, part of Roblox for more than four years, plans to leave by end of September.
Conservative Guidance for Viral Hits
Despite positive trends, the company provided conservative guidance assuming viral hits would normalize, considering heightened uncertainty in Q4.
Company Guidance
During the Roblox Q2 2025 earnings call, the company reported substantial growth across key metrics, reflecting strong performance and increased guidance for the fiscal year. Revenue reached $1.1 billion, marking a 21% year-on-year increase, while bookings surged to $1.4 billion, up 51% year-on-year. Daily active users (DAUs) rose by 41% to 111.8 million, with substantial growth in the APAC region, which saw a 76% increase. The company also reported 27.4 billion hours engaged, a 58% rise year-on-year. Monthly unique payers hit a record 23.4 million, up 42%, with average bookings per monthly unique payer increasing by 6%. Developer exchange payments (DevEx) reached an all-time high of $316.4 million, up 52%. The call highlighted the success of viral experiences like Grow a Garden and emphasized ongoing investments in infrastructure, discovery, and economy to support creator success and target capturing 10% of the global gaming content market. Consequently, Roblox raised its fiscal year 2025 guidance, projecting revenue growth of 22% to 25% and bookings growth of 34% to 37%.

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
72
Positive
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
65
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.02B3.60B2.80B2.23B1.92B923.88M
Gross Profit3.14B2.80B2.15B1.68B1.42B683.99M
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 Assets7.85B7.18B6.17B5.38B4.56B1.85B
Cash, Cash Equivalents and Short-Term Investments2.63B2.41B2.19B2.98B3.00B893.94M
Total Debt1.79B1.81B1.76B1.56B1.23B0.00
Total Liabilities7.51B6.97B6.10B5.07B3.97B2.08B
Stockholders Equity353.22M221.45M76.29M306.03M584.82M-252.39M
Cash Flow
Free Cash Flow964.47M642.67M124.01M-58.37M557.98M411.22M
Operating Cash Flow1.08B822.32M458.18M369.30M659.11M524.34M
Investing Cash Flow-1.15B-852.07M-2.83B-441.05M-146.82M-97.03M
Financing Cash Flow96.79M65.89M67.18M43.64M1.60B164.97M

Roblox Technical Analysis

Technical Analysis Sentiment
Positive
Last Price128.47
Price Trends
50DMA
120.11
Positive
100DMA
101.00
Positive
200DMA
80.57
Positive
Market Momentum
MACD
2.42
Negative
RSI
55.41
Neutral
STOCH
60.26
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 128.47 is above the 20-day moving average (MA) of 124.52, above the 50-day MA of 120.11, and above the 200-day MA of 80.57, indicating a bullish trend. The MACD of 2.42 indicates Negative momentum. The RSI at 55.41 is Neutral, neither overbought nor oversold. The STOCH value of 60.26 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 53 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$84.17B18.2124.36%2.01%2.86%19.96%
77
Outperform
$42.19B42.3315.46%0.45%2.68%-6.15%
72
Outperform
$88.52B-401.21%27.39%16.59%
68
Neutral
$9.22B308.681.58%22.89%
60
Neutral
$46.60B4.08-11.40%4.13%1.85%-42.71%
59
Neutral
$1.40B16.14-220.61%10.61%4.98%-60.29%
55
Neutral
$44.21B-89.29%7.33%-7.46%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RBLX
Roblox
128.47
83.57
186.12%
EA
Electronic Arts
168.06
24.98
17.46%
NTES
NetEase
144.00
69.58
93.50%
TTWO
Take-Two
248.78
93.93
60.66%
BILI
Bilibili
22.56
7.50
49.80%
PLTK
Playtika Holding
3.77
-3.12
-45.28%

Roblox Corporate Events

Executive/Board ChangesFinancial Disclosures
Roblox Announces Chief Product Officer Resignation
Positive
Jul 31, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Roblox CFO Michael Guthrie Resigns Amid Management Changes
Negative
Jul 1, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Roblox Appoints Naveen Chopra as New CFO
Positive
Jun 10, 2025

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.

Executive/Board ChangesShareholder Meetings
Roblox Reincorporates to Nevada After Stockholder Meeting
Neutral
Jun 2, 2025

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.

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.Date of analysis: Aug 03, 2025