Roblox Corporation

What they do

Roblox operates the Roblox Platform, made up of the Roblox Client (where users explore games), Roblox Studio (free tools to build and publish games and avatar items), and Roblox Cloud (the infrastructure powering it). Revenue comes mainly from users buying and spending Robux, alongside a developing advertising business. Only a small minority of users pay: in Q2 2026, about 1.6 million of 123 million average DAUs were paying users.

Revenue drivers

• Robux purchases and in-experience spend — Users buy Robux and spend them on games, avatar items, and Marketplace content; this is the core of bookings and is dominated by a small paying cohort — average daily bookings per paying user was $10.42 in Q2 2026 versus $0.14 per DAU.
• Creator economy / Developer Exchange — Creators earn Robux from their experiences and convert to cash via DevEx; the company increased the DevEx rate rewarding in-game spend from over-18 users in the U.S. Creator payouts are a primary cost of revenue.
• Advertising — The company names scaling its advertising business as a stated growth area, but the filings do not break out advertising revenue, so its current size relative to Robux-based revenue is not disclosed.
• International and platform expansion — Revenue is spread across mobile, desktop, and console in over 180 countries; management cites regional pricing expansion, the reinstatement of Roblox in Russia, and new account types as recent drivers of sign-ups and engagement.

Recent performance

Q2 2026 revenue was $1.5 billion, up 36% year-over-year, with bookings growth of 8% at the low end of guidance. Operating cash flow was $318 million (up 60%) and free cash flow $294 million (up 66%). Daily active users exceeded 120 million and hours engaged exceeded 29 billion. Management attributed the bookings shortfall to lower per-hour monetization among younger U.S. and Canada cohorts, driven by a mix shift toward lower-monetizing games, changes to the Recommended For You algorithm, and the disabling of cross-experience game passes. Full-year 2025 revenue was $4.89 billion with a net loss of $1.07 billion.

Strategy

Management's stated goal is to capture 10% of the roughly $200 billion global gaming market, with an even greater share of the U.S. market. It is re-imagining the Roblox homepage into five tabs (Home, Moments, Build, Chat, Me), targeting 2D as well as high-fidelity games, and expanding discovery via the Moments feature. Build is intended to bring prompt-based, no-coding game creation to the mobile app, and the company is investing in AI tools, high-fidelity avatars, and integrated voice, video, and text communications inside its safety infrastructure. Investment priorities are the creator community, trust and safety systems, and the people and technology needed to run the platform.

Risks

• Persistent net losses — The company has posted net losses every year from 2021 to 2025, including $1.07 billion in 2025, and states it may not achieve or maintain profitability.
• Monetization and engagement mix — Q2 2026 bookings growth of 8% fell to the low end of guidance as per-hour monetization declined among younger U.S. and Canada cohorts, and algorithm and game-pass changes played a role.
• Child safety and regulation — The company says its business depends on providing a safe environment for users, many of whom are children, and it faces evolving online safety, privacy, and data protection laws worldwide.
• Dependence on third-party platforms — The filings warn that the company relies on third-party operating systems, hardware, networks, and app stores, whose changes could raise costs or disrupt platform availability.

Outlook

Management expects continued topline growth while investing behind long-term opportunities: expanding the global audience, broadening content, and deepening engagement for users and creators. It flags that safety changes have impacted and may continue to impact engagement, retention, revenue, and bookings, and describes the Q2 monetization pressure as partly timing-related, expecting longer retention to eventually offset lower hourly monetization. Specific numerical guidance figures are not included in the excerpts provided.