Roblox (RBLX) AI Stock Analysis

• Market Cap: $73.09B
• Dividend Yield: N/A
• Average Volume (3M): 7.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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): -0.37
• Shares Outstanding: 654,855,040
• 10 Day Avg. Volume: 9,955,139
• 30 Day Avg. Volume: 7,591,665
• PEG Ratio: 1.74
• Price to Book (P/B): 169.18
• Price to Sales (P/S): 10.40
• P/FCF Ratio: 58.29
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 21.39
• Enterprise Value/Gross Profit: 27.37
• Enterprise Value/Ebitda: -116.42
• 1Y Price Target: $150.64
• Price Target Upside: 44.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24
• EPS Forecast (FY): -1.56
• Revenue Forecast (FY): $6.50B

• Rating: 48 Neutral
• Price Target: $112.00 ▲(7.56% Upside)

Roblox's overall stock score reflects strong user growth and financial performance, but is weighed down by profitability challenges and high leverage. Technical indicators suggest bearish momentum, and the valuation remains unattractive due to ongoing losses. The earnings call provided positive insights into growth potential, but highlighted potential short-term challenges.

Positive Factors

Revenue Growth

Roblox's strong revenue growth indicates robust demand and effective monetization strategies, supporting long-term business expansion.

User Engagement

Increasing daily active users and engagement levels highlight the platform's growing popularity, essential for sustained growth and market leadership.

Partnership Expansion

The expanded partnership with Mattel enhances Roblox's content offering, attracting more users and developers, which strengthens its competitive position.

Negative Factors

Profitability Challenges

Ongoing net losses and negative profit margins highlight challenges in achieving profitability, which could impact long-term financial health.

Regulatory Risks

Regulatory scrutiny over user safety could lead to increased compliance costs and reputational damage, affecting user trust and growth.

Weak Balance Sheet

A weak equity position and high leverage raise concerns about financial stability, potentially limiting future investment and growth opportunities.

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

Roblox shows strong revenue growth and cash flow generation, but struggles with profitability and high leverage. The company needs to improve cost management and strengthen its balance sheet for long-term sustainability.

Income Statement

Roblox shows strong revenue growth with a 10.95% increase in TTM, indicating a positive trajectory. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains robust at 78.13%, but the persistent net losses highlight challenges in cost management and achieving operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 1.52 in TTM, although improved from previous years. The return on equity remains negative, reflecting ongoing losses. The equity ratio is low, indicating potential financial instability. Despite some reduction in debt, the company needs to strengthen its equity base to improve financial health.

Cash Flow

Roblox demonstrates strong cash flow generation with a 35.83% growth in free cash flow in TTM. The operating cash flow to net income ratio is healthy, suggesting effective cash management. However, the free cash flow to net income ratio indicates that cash flow is not yet sufficient to cover net losses, highlighting the need for continued focus on cash flow improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.46B	3.60B	2.80B	2.23B	1.92B	923.88M
Gross Profit	3.49B	2.80B	2.15B	1.68B	1.42B	683.99M
EBITDA	-820.09M	-670.25M	-910.95M	-761.86M	-421.40M	-220.54M
Net Income	-968.63M	-935.38M	-1.15B	-924.37M	-491.65M	-253.25M
Balance Sheet
Total Assets	8.59B	7.18B	6.17B	5.38B	4.56B	1.85B
Cash, Cash Equivalents and Short-Term Investments	2.86B	2.41B	2.19B	2.98B	3.00B	893.94M
Total Debt	617.90M	1.81B	1.76B	1.56B	1.23B	0.00
Total Liabilities	8.20B	6.97B	6.10B	5.07B	3.97B	2.08B
Stockholders Equity	407.57M	221.45M	76.29M	306.03M	584.82M	-252.39M
Cash Flow
Free Cash Flow	1.29B	642.67M	124.01M	-58.37M	557.98M	411.22M
Operating Cash Flow	1.37B	822.32M	458.18M	369.30M	659.11M	524.34M
Investing Cash Flow	-1.06B	-852.07M	-2.83B	-441.05M	-146.82M	-97.03M
Financing Cash Flow	97.65M	65.89M	67.18M	43.64M	1.60B	164.97M

Roblox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBLX, the sentiment is Negative. The current price of 104.13 is below the 20-day moving average (MA) of 126.60, below the 50-day MA of 129.60, and above the 200-day MA of 95.42, indicating a neutral trend. The MACD of -4.93 indicates Positive momentum. The RSI at 28.29 is Positive, neither overbought nor oversold. The STOCH value of 6.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBLX.

Roblox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	81 Outperform	$85.61B	18.77	24.36%	2.09%	2.86%	19.96%
BILI	71 Outperform	$12.05B	395.04	1.58%	―	22.89%	―
EA	68 Neutral	$50.08B	58.69	13.20%	0.38%	-1.45%	-11.99%
PLTK	65 Neutral	$1.37B	15.84	―	10.67%	4.98%	-60.29%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	60 Neutral	$46.57B	―	-89.29%	―	7.33%	-7.46%
RBLX	48 Neutral	$73.09B	―	-324.24%	―	32.70%	12.57%

Roblox Corporate Events

Roblox Corp.’s Jury Trial Waiver: Legal Uncertainty Poses Risk to Stockholders

Roblox Corp. faces a potential risk due to a provision in its articles of incorporation that waives the right to a jury trial for internal actions, as defined by Nevada law. This waiver, while authorized by a recent amendment to Nevada’s statutes, has not yet been tested in court, leaving its enforceability uncertain. This could limit stockholders’ ability to pursue jury trials in certain disputes, potentially affecting their legal recourse and satisfaction. The ambiguity surrounding this waiver’s enforceability may pose a legal risk to the company and its stockholders.

Roblox Corp. Reports Strong Q3 2025 Growth

Roblox Corporation, a leading player in the online gaming and entertainment industry, is renowned for its immersive platform that allows users to create and engage in virtual experiences. The company operates in the interactive entertainment sector, offering a unique ecosystem where users can both play and create games, fostering a vibrant community of developers and players.

Roblox Reports Strong Q3 2025 Revenue Growth

In its Q3 2025 report, Roblox announced a 48% year-over-year revenue growth and a 70% increase in bookings, with daily active users reaching 151.5 million. The company is advancing its safety protocols and AI capabilities, aiming to set a new standard for communication safety and enhance its platform’s user experience, despite potential short-term engagement impacts.

The most recent analyst rating on (RBLX) stock is a Hold with a $144.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox CPO Manuel Bronstein Announces Resignation

On July 28, 2025, Manuel Bronstein, Roblox‘s Chief Product Officer, announced his resignation to pursue personal interests and entrepreneurial ventures. His employment will officially end on September 30, 2025, after which he will continue to provide advisory services until April 13, 2026, receiving compensation and continued vesting of equity awards during this period.

The most recent analyst rating on (RBLX) stock is a Hold with a $116.00 price target. To see the full list of analyst forecasts on Roblox stock, see the RBLX Stock Forecast page.

Roblox Reports Strong Q2 2025 Growth Amid Losses

Roblox Corporation is a global platform that connects millions of people through shared virtual experiences, primarily in the gaming industry, known for its unique user-generated content ecosystem. In its second quarter of 2025, Roblox reported significant growth across various metrics, including a 21% increase in revenue to $1,080.7 million and a 51% rise in bookings to $1,437.6 million year-over-year. Despite these gains, the company reported a net loss of $278.4 million attributable to common stockholders. The platform also saw a 41% increase in average daily active users, reaching 111.8 million, and a 58% increase in hours engaged, totaling 27.4 billion. Roblox’s financial health is underscored by a strong cash flow, with net cash provided by operating activities up 32% year-over-year to $199.3 million. The company also reported a free cash flow of $176.7 million, marking a 58% increase from the previous year. Looking ahead, Roblox has raised its full-year guidance, projecting revenue between $4,390 million and $4,490 million and bookings between $5,870 million and $5,970 million for 2025. The company remains focused on strategic investments in infrastructure and the virtual economy to drive long-term growth.

Roblox Q2 2025 Earnings Call: Growth Amid Challenges

Roblox’s Q2 2025 earnings call painted a picture of robust growth, with the company reporting significant increases in revenue, bookings, and user engagement. The positive sentiment was fueled by the success of viral hits and an expanding ecosystem. However, the call also highlighted potential challenges, including leadership changes and a cautious outlook for Q4 due to uncertainties in sustaining current growth rates.

Roblox Announces Chief Product Officer Resignation

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.