Roblox (NYSE:RBLX) Releases Earnings Results, Beats Estimates By $0.04 EPS

Roblox (NYSE:RBLX) issued its earnings results on Thursday. The company reported ($0.45) EPS for the quarter, topping the consensus estimate of ($0.49) by $0.04, FiscalAI reports. The firm had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $2.08 billion. Roblox had a negative return on equity of 311.88% and a negative net margin of 21.78%.The business’s quarterly revenue was up 122.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.33) earnings per share.

Here are the key takeaways from Roblox’s conference call:

• Roblox materially outperformed in 2025 — full‑year bookings up ~55% and revenue +36%; Q4 revenue $1.4B (+43% YoY), Q4 bookings $2.2B (+63% YoY), DAUs +69% and engagement hours +88% YoY.
• Management guided 2026 bookings growth of 22%–26% (explicitly excluding another massive viral hit), with margins ~flat at the high end but modestly pressured by a higher DevEx rate and investments in AI, safety and infrastructure; FCF at midpoint implies ~26% YoY growth.
• Global age‑verification and safety rollout completed (completed Jan 2026) with ~45% global DAU penetration to date and plans for continuous age estimation and age‑aware matchmaking to target older, higher‑spending cohorts.
• Significant AI and platform investments — >400 internal models, 4D/3D generation, native streaming (SLIM), native server authority, custom matchmaking and avatar upgrades — aimed at genre expansion, better discovery and higher monetization across older users and fast‑growing international markets.

Roblox Stock Up 9.9%

Roblox stock opened at $66.59 on Friday. The firm has a market cap of $43.61 billion, a price-to-earnings ratio of -42.96 and a beta of 1.63. Roblox has a 52-week low of $50.10 and a 52-week high of $150.59. The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96. The firm has a 50 day moving average price of $81.19 and a two-hundred day moving average price of $107.88.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Piper Sandler reissued an “overweight” rating and set a $100.00 price objective (down previously from $125.00) on shares of Roblox in a report on Friday. UBS Group set a $74.00 price target on Roblox in a research note on Friday. Needham & Company LLC lowered their price objective on Roblox from $159.00 to $105.00 and set a “buy” rating for the company in a research note on Friday. TD Cowen reiterated a “sell” rating on shares of Roblox in a report on Tuesday, January 27th. Finally, Wall Street Zen raised shares of Roblox from a “sell” rating to a “hold” rating in a report on Saturday, October 18th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $123.76.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Strong Q4 engagement and bookings — Bookings rose sharply and daily active users and engaged hours topped Street expectations, a core reason shares rallied after the print. Barron’s: Roblox Reports Huge Surge in Bookings, Users, Engagement
• Positive Sentiment: Guidance upside — Management gave first-quarter and full‑year bookings/revenue targets that were above consensus, reinforcing growth expectations and fueling the post‑earnings rally. CNBC: Roblox shares rocket 20% on earnings beat, strong forecast
• Positive Sentiment: Management narrative on product and AI — CEO Dave Baszucki emphasized AI tools that enable creator-driven content and ongoing focus on community/safety, supporting the long‑term monetization story. YouTube: Roblox earnings: CEO talks gaming, AI, and user growth
• Neutral Sentiment: Coverage mostly bullish but mixed — Several firms reaffirmed positive ratings and high price targets (e.g., BTIG, Wedbush), reflecting confidence in the growth outlook even after recent volatility. Benzinga: Analyst notes
• Neutral Sentiment: Market reaction centered on user metrics more than GAAP profitability — reporters and analysts are highlighting DAU/bookings growth as the primary driver rather than near‑term EPS. WSJ: Roblox Posts Higher Revenue as Bookings, Daily Active Users Rise
• Negative Sentiment: Analyst downgrades / lower targets — Some shops cut price targets or trimmed expectations (JPMorgan cut its target to $75 and moved to neutral), which could cap upside if momentum fades. Benzinga: JPMorgan price target cut
• Negative Sentiment: Company still unprofitable — Roblox reported a GAAP loss (improved vs. prior year) and negative margins, a reminder that growth is not yet translating into sustained profitability. MarketBeat: Q4 results and transcript

Insider Buying and Selling

In other Roblox news, CAO Amy Marie Rawlings sold 2,642 shares of Roblox stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $95.24, for a total value of $251,624.08. Following the completion of the sale, the chief accounting officer directly owned 46,452 shares in the company, valued at approximately $4,424,088.48. The trade was a 5.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mark Reinstra sold 16,782 shares of Roblox stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $95.24, for a total transaction of $1,598,317.68. Following the completion of the sale, the insider owned 370,532 shares of the company’s stock, valued at $35,289,467.68. This represents a 4.33% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 423,899 shares of company stock worth $37,883,851. Corporate insiders own 12.92% of the company’s stock.

Institutional Investors Weigh In On Roblox

A number of institutional investors and hedge funds have recently bought and sold shares of RBLX. NewEdge Advisors LLC increased its position in shares of Roblox by 2.3% during the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock valued at $597,000 after purchasing an additional 231 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in shares of Roblox by 70.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock worth $1,368,000 after buying an additional 5,363 shares during the last quarter. CW Advisors LLC bought a new position in Roblox during the second quarter valued at about $272,000. Baird Financial Group Inc. increased its holdings in Roblox by 1.4% during the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after buying an additional 102 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new stake in Roblox in the second quarter worth about $438,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Company Profile

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.