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Roblox
(NYSE:RBLX)
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Rating:55Neutral
Price Target:
$57.00
▼(-5.54% Downside)
Action:Reiterated
Date:05/30/26
The score is driven primarily by strong cash flow generation despite continued accounting losses, balanced against weak technical trend signals and limited valuation support from a negative P/E and no dividend. Earnings-call commentary adds a mixed outlook: standout Q1 performance, but a meaningful guidance cut and expected near-term DAU/bookings headwinds from safety-driven product changes and margin pressure.
Positive Factors
Strong cash generation
Roblox's multi-billion-dollar operating and free cash flow provides durable funding for product investment, creator incentives, and buybacks without relying on recurring profitability. Strong cash conversion cushions the business through user-growth cycles and funds strategic initiatives over the next several quarters.
Negative Factors
Persistent operating losses
Despite strong cash flows, sustained negative operating and net margins indicate the company has not yet demonstrated durable profitability. Continued losses constrain returns on equity and mean long-term investment plans rely on maintaining cash generation rather than consistent GAAP earnings improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Roblox's multi-billion-dollar operating and free cash flow provides durable funding for product investment, creator incentives, and buybacks without relying on recurring profitability. Strong cash conversion cushions the business through user-growth cycles and funds strategic initiatives over the next several quarters.
Read all positive factors
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 (RBLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.67B
Dividend YieldN/A
Average Volume (3M)11.70M
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth38.10%
EPS Growth-16.91%
CountryUS
Employees2,474
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-1.58
Shares Outstanding671,595,760
10 Day Avg. Volume12,394,677
30 Day Avg. Volume11,701,192
Financial Highlights & Ratios
PEG Ratio-7.58
Price to Book (P/B)141.65
Price to Sales (P/S)11.43
P/FCF Ratio41.30
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue6.38
Enterprise Value/Gross Profit8.14
Enterprise Value/Ebitda-40.92
Forecast
1Y Price Target
$63.68Price Target Upside5.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)-1.5
Revenue Forecast (FY)$7.50B
Roblox Business Overview & Revenue Model
Company Description
Roblox Corporation oversees the development and operation of a leading digital entertainment ecosystem. Its offerings include Roblox Studio, a complimentary suite of tools empowering developers and artists to construct, launch, and manage interact...
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 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 | -826.43M | -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 | 1.80B | 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
Positive
60.34
Price Trends
47.59
Positive
54.27
Positive
77.90
Negative
Market Momentum
2.12
Negative
62.39
Neutral
86.75
Negative
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 60.34 is above the 20-day moving average (MA) of 47.58, above the 50-day MA of 47.59, and below the 200-day MA of 77.90, indicating a neutral trend. The MACD of 2.12 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 86.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBLX.
Roblox Risk Analysis
Roblox disclosed 51 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $81.40B | 16.22 | 21.64% | 2.19% | 8.50% | 7.29% | |
69 Neutral | $51.46B | 57.81 | 14.19% | 0.37% | 1.72% | -17.04% | |
65 Neutral | $7.15B | 53.40 | 8.04% | ― | 11.20% | ― | |
63 Neutral | $47.34B | -157.81 | -8.57% | ― | 18.16% | 93.64% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $39.67B | -35.08 | -276.20% | ― | 38.10% | -16.91% | |
52 Neutral | $1.47B | -5.02 | 113.59% | 9.98% | 7.30% | -307.46% |
* Communication Services Sector Average
RBLX
Roblox
55.41
-52.35
-48.58%
EA
Electronic Arts
205.21
50.45
32.60%
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NetEase
127.24
-2.45
-1.89%
TTWO
Take-Two
254.99
14.88
6.20%
BILI
Bilibili
17.14
-3.74
-17.91%
PLTK
Playtika Holding
3.87
-0.83
-17.64%
Roblox Corporate Events
Executive/Board ChangesShareholder Meetings
Roblox Shareholders Back Leadership, Pay, and Auditor Choices
Positive
May 29, 2026
At its May 28, 2026 annual meeting of stockholders, Roblox reported that 92.6% of the voting power was represented, with Class A shares carrying one vote and Class B shares 20 votes each, underscoring the company’s dual-class share structure...
Business Operations and StrategyStock Buyback
Roblox Launches First $3 Billion Share Repurchase Program
Positive
May 19, 2026
On May 19, 2026, Roblox Corp. said its board authorized an inaugural share repurchase program of up to $3 billion of Class A common stock, with an initial intent to buy back up to $1 billion over the next 12 months. Management framed the move as a...
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...
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.