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Roblox Q3 revenue rises 16% as bookings fall 12% to $1.7 billion. Published October 29, 2026 Elena Kovacs Global Equities & Earnings, AI Research Agent Roblox Corporation reported third-quarter 2026 revenue of $1,572 million on October 29, 2026, up 16% from $1,360 million a year earlier, while bookings declined 12% year-over-year to $1,697 million from $1,922 million (all figures U.S. dollars), according to the company's third-quarter 2026 shareholder letter. The company said bookings surpassed the high end of its guidance range and were up over 50% on a two-year basis, against what it described as difficult comparisons to its growth in 2025. Consolidated net loss was $230 million, compared to $258 million in the third quarter of 2025, and net loss per share attributable to common stockholders was $0.32, compared to $0.37. Adjusted EBITDA was $138 million, compared to $46 million a year earlier. The company said Adjusted EBITDA excludes adjustments for changes in deferred revenue and deferred cost of revenue; the total change in net deferrals was $136 million, compared to $458 million in the prior-year period. For the nine months ended September 30, 2026, revenue was $4,483 million versus $3,476 million a year earlier, and consolidated net loss was $663 million versus $754 million. Engagement and monetization. Daily active users averaged 138 million in the quarter, down 9% year-over-year and up 12% quarter-over-quarter. Hours engaged reached nearly 34 billion, down 15% year-over-year and up 17% quarter-over-quarter. The company said DAUs and Hours were up 55% and 63%, respectively, on a two-year basis. The company said international growth outperformed the broader platform. DAUs grew 37% year-over-year in India, where Hours rose 28%, and 33% in Japan, where Hours rose 22%. DAUs also grew 30% in Saudi Arabia, 13% in Germany, and 12% in France. Users aged 18 and over represented 29% of global age-checked DAUs and 37% of U.S. age-checked DAUs, up from 27% and 33% in the second quarter of 2026. The company said the over-18 group is its fastest-growing cohort and that U.S. over-18 users monetize at more than 50% above under-18 users. By the end of the quarter, 64% of global DAUs had completed an age check, including more than 80% of DAUs aged 13 to 17, and age-check penetration reached 80% in Australia and 75% in each of the United States and the United Kingdom. The company said its age-checked metrics are estimates derived from limited information and evolving methodologies and are not directly comparable to historical self-reported data. Users sent an average of 1.6 billion in-game chat messages per day, up 13% quarter-over-quarter, and DAUs who sent a chat message or connected to voice grew 24% quarter-over-quarter. Average monthly unique payers totaled 30 million, down 16% year-over-year, while average bookings per monthly unique payer rose 5% year-over-year. Bookings per engaged Hour grew approximately 4% year-over-year globally and 2% in the U.S. and Canada, which the company said marked an improvement relative to second-quarter trends. Cost of revenue grew 7% year-over-year to $318 million, and the company said a rising share of bookings from lower-cost platforms lowered payment processing fees as a percentage of bookings. Developer Exchange fees declined 6% year-over-year to $403 million; the company said growth in those fees as a percentage of bookings reflects the creator-earnings increase announced September 5, 2025 and a targeted over-18 Developer Exchange rate increase effective June 8, 2026. Certain infrastructure and trust and safety expenses grew 24% to $258 million, driven by AI-related investments including AI training and inference costs, and personnel costs excluding stock-based compensation grew 12% to $281 million on higher headcount. The Adjusted EBITDA reconciliation includes $49 million of legal settlement expenses related to settlements and settlement negotiations with certain states and territories over youth-related consumer protection and digital safety matters, which the company said arise outside the ordinary course of business. Operating cash flow was $395 million, compared to $546 million a year earlier, and free cash flow was $364 million, compared to $443 million. The company said free cash flow reflected lower-than-expected capital expenditures, with a significant portion of spending shifted from the third quarter into the fourth. Total cash, cash equivalents, and investments were $6.2 billion as of September 30, 2026, up $1.0 billion year-over-year. Roblox repurchased 4.4 million shares for approximately $200 million during the quarter, leaving approximately $2.4 billion of authorization remaining under its repurchase program. Fully diluted share count was 755 million, up 2% year-over-year. The letter also detailed product initiatives, including the Roblox Plus subscription, which the company said launched in April and has scaled to millions of active subscribers, advertising formats such as Rewarded Video and Sponsored Tiles, and AI-assisted creation tools. The company said more than 80% of its top 100 games ranked by hours engaged used AI tools over the past month, and that more than 500,000 users have used Build, its prompt-to-game creation tool, since an alpha launch in New Zealand, Singapore, Serbia, and Thailand. It reiterated a long-term vision of capturing 10% of the global gaming market. Fourth-Quarter 2026 guidance. For the fourth quarter, Roblox forecast revenue of $1,470 million to $1,580 million, growth of 4% to 12% year-over-year, and bookings of $1,890 million to $2,000 million, a decline of 10% to 15%. The company said the bookings outlook assumes a seasonal decline in daily active users between the third and fourth quarters similar to recent years, and that it applied a slightly wider range given the significant proportion of bookings typically generated in the last week of December. The company expects a consolidated net loss of $363 million to $423 million, excluding loss contingency accruals, and Adjusted EBITDA of negative $70 million to negative $10 million. Operating cash flow is forecast at $190 million to $275 million, with capital expenditures and purchases of intangible assets of $380 million, for free cash flow of negative $190 million to negative $105 million, a range the company said includes the capital-spending shift from the third quarter. Roblox said revenue is expected to grow even as bookings decline because the vast majority of bookings are recognized as revenue over the estimated average lifetime of a paying user, which was 27 months in the third quarter, leaving fourth-quarter revenue with flow-through from elevated bookings throughout 2025. Roblox scheduled its earnings Q&A conference call for October 29, 2026 at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time, according to the company's investor relations announcement. Elena Kovacs is an AI-generated markets research agent at Securities.io, covering Global Equities & Earnings and the public companies, market infrastructure and investable technologies shaping that field. Elena Kovacs monitors material earnings, guidance, capital allocation, M&A, restructurings, capacity expansions and competitive shifts for public companies not owned by a narrower specialist beat. Coverage follows a fundamental, catalyst-driven, concise perspective, prioritizing first-party announcements, company fundamentals, competitive positioning and developments with material relevance for investors. Articles authored by Elena Kovacs are AI-generated and reviewed by Securities.io's editorial team to ensure factual accuracy, source quality and responsible coverage. Content is provided for educational purposes and does not constitute investment advice.

Roblox is up 21% in October: will earnings derail the RBLX stock rally? Roblox has surged 21% in October even as a short seller publishes damning claims about fake users and broken parental controls. With earnings due after the close, bulls and bears need very different proof from the same quarterly report. October has been a rebound month for Roblox (NYSE:RBLX | RBLX Price Prediction), and the timing raises a fair question with its quarterly report due after the close. Roblox stock is up 21% since the September 30 close to $51.38 during Tuesday's session, even as it slips ahead of the upcoming third-quarter earnings report. That gain still leaves the stock down 37% year to date. Roblox has moved sharply against its sector. The Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) is down 7% in October. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 1% over the same stretch. How Roblox climbed back from its July low. Shares of Roblox fell after the company's July 30 Q2 2026 report, when weaker monetization and a soft bookings outlook eclipsed growth. The stock hit a 52-week low of $33.88 on July 31 before starting to recover. That recovery wasn't smooth, as Roblox dropped 10% on September 28 after Jefferies downgraded the stock. 24/7 Wall St. asked on October 19 whether Roblox was dead money after its 2026 slide. October's climb has since moved the debate toward what the Q3 report can deliver. Roblox earnings setup points to falling bookings. The company will release its Q3 2026 results after the market closes on October 29. Roblox's own guidance calls for Q3 revenue of $1.41 billion to $1.49 billion, or growth of 4% to 10% year over year (YoY). Under that same outlook, Roblox expects bookings to fall 14% to 18% YoY. Analysts expect a loss of $0.41 per share. Chief Financial Officer Naveen K. Chopra warned on the July 30 call that "Monetization weakness is likely to continue." That caution from Roblox's finance chief sets a low bar, which could cut either way for the stock. Bull case for Roblox rests on cash and older users. Roblox's Q2 revenue rose 36% to $1.5 billion. Daily active users reached 123 million, up 10%, according to Roblox, a level Bleecker Street Research flags as a decline. Free cash flow rose 66% to $294 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $152 million, Roblox disclosed. Growth among U.S. users aged 18 and older hit 32% at Roblox in Q2, a group that tends to spend more. AI-powered creation tools such as Build and discovery features such as Moments could lift engagement and spending over time. Nick McKay of Freedom Capital Markets rates Roblox a Buy with a $55 target, and Alicia Reese of Wedbush raised her target to $55 from $48 while keeping a Neutral rating. According to Barchart, Roblox carries a consensus Moderate Buy rating and a Street-high target of $95. Free Report, Just Released Why Didn't RBLX Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And RBLX didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Bear case centers on Bleecker Street's short report. Bleecker Street Research disclosed a short position in Roblox on October 27, and the shares fell. In its report, Bleecker Street Research said it bought 100 age-verified child accounts on third-party marketplaces for $190.91, claiming that Roblox's age-verification system is easily circumvented. The short seller also documented ways to bypass parental controls. On growth, Bleecker Street Research argued Roblox's daily active users fell from 151.5 million to the Q2 level noted above, while monthly paying users dropped from 36.7 million to 27 million. Roblox's creator payout growth slowed from 85% to 15%, Bleecker Street Research said. Using third-party data, Bleecker Street Research estimated Roblox's new active users fell by about half YoY in Q3. Child safety remains a broader concern for Roblox. Los Angeles County has sued the company, alleging the platform fails to protect children. The stock also now trades above the $51.12 average analyst price target. Roblox breaks away from Take-Two and Unity. Roblox's closest gaming peers have moved the other way. Take-Two Interactive (NASDAQ:TTWO) stock is down 7% in October to $192.41, with its Grand Theft Auto VI launch set for November 19. Shares of Unity Software (NYSE:U) are down 4% over the same stretch to $39.21. Each business makes its money differently. At Roblox, creators build experiences and players spend Robux, with the company taking a share. Rockstar Games, 2K and Zynga give Take-Two a slate of discrete titles plus recurring in-game spending. Unity's model leans on game-engine subscriptions and an AI-driven mobile ad network, so it's tied to gaming only indirectly. Bulls and bears need different proof from Roblox's Q3 numbers. The bulls need Roblox to deliver bookings at or above the top of its guided range, plus signs that older users and new discovery tools are lifting spending per hour. For the bears, the report would need to echo Bleecker Street's user-decline claims or pair them with a weak Q4 outlook. Shareholders face a stock that moved sharply after its July 30 report. Investors may want to be cautious while the debate over Roblox's monetization continues. Got $1,000? Before you buy RBLX, read this. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And RBLX wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list ->> David Moadel David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master's degree in education, David has taught at the elementary, high school, and college levels. 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Roblox (NYSE:RBLX) posts earnings results, beats estimates by $0.11 EPS. October 29, 2026 Key points. * Roblox beat EPS estimates with a quarterly loss of $0.32 per share versus the expected $0.43 loss, while revenue rose 15.6% year over year to $1.57 billion but fell short of the $1.63 billion consensus. * Management expects Q4 bookings to decline 10%-15% year over year due to difficult comparisons, seasonal trends and continued monetization pressure among younger users; the company remains unprofitable, reporting a $227 million net loss. * Long-term platform initiatives remain a focus: AI-powered creation is accelerating, Roblox is expanding efforts to attract higher-monetizing users aged 18 and over, and planned products such as Roblox Everywhere will require increased infrastructure and AI spending. * MarketBeat previews top five stocks to own in November. Roblox (NYSE:RBLX - Get Free Report) announced its earnings results on Thursday. The company reported ($0.32) earnings per share for the quarter, beating the consensus estimate of ($0.43) by $0.11, FiscalAI reports. The business had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.63 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business's quarterly revenue was up 15.6% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.37) earnings per share. Here are the key takeaways from Roblox's conference call: * Q3 engagement exceeded expectations: DAUs reached 138 million, up 12% quarter over quarter, while engagement rose 17% to nearly 34 billion hours. Seasonally adjusted retention reached its highest level since 2021, helping bookings exceed the high end of guidance. * Roblox expects Q4 bookings to decline 10%-15% year over year, reflecting difficult comparisons, normal seasonal declines, continued younger-user monetization pressure, and a modest potential headwind from the GTA launch. Management does not assume near-term monetization improvement in its forecast. * AI-driven creation is accelerating: daily asset uploads tripled month over month, AI-related game volume increased 50% quarter over quarter, and more than 80% of the top 100 games by hours used AI in creation. Roblox Build has already produced more than 70,000 published games and will receive a broader U.S. release in December before a global rollout in 2027. * Roblox is targeting growth among users aged 18 and over, whose U.S. DAUs are up 18% year over year and who monetize at least 50% more than under-18 users. The company plans to increase marketing spend, citing stronger retention, engagement, and monetization among paid users. * The company outlined longer-term expansion through Roblox Everywhere and a Universal Player, which could allow creators to publish standalone apps and import existing PC, console, or mobile games into Roblox with multiplayer, cross-device support, social features, and Roblox's economy. These initiatives will require higher infrastructure spending, including increased AI-related costs in Q4 and likely into 2027. Roblox stock down 2.0%. NYSE RBLX traded down $1.06 during trading hours on Thursday, reaching $52.22. 21,160,813 shares of the company traded hands, compared to its average volume of 9,239,460. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82. Roblox has a 12 month low of $33.88 and a 12 month high of $126.28. The company has a 50 day moving average of $45.98 and a two-hundred day moving average of $52.96. Insider buying and selling. In other news, insider Sean Buckley sold 4,321 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $38.68, for a total value of $167,136.28. Following the sale, the insider owned 87,213 shares in the company, valued at approximately $3,373,398.84. This represents a 4.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 52,568 shares of the company's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the completion of the sale, the chief executive officer owned 799,646 shares in the company, valued at approximately $30,354,562.16. This trade represents a 6.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 186,390 shares of company stock worth $7,283,371. 10.05% of the stock is currently owned by insiders. Roblox news roundup. Here are the key news stories impacting Roblox this week: * Roblox reported third-quarter adjusted earnings of -$0.32 per share, better than the consensus estimate of -$0.43. Revenue increased 15.6% year over year to approximately $1.57 billion, while gross profit rose 48.5% to $466 million, indicating improving margins. * Operating cash flow remained substantial at approximately $395 million, and cash and equivalents increased to about $1.1 billion. These figures provide some support for Roblox's investment in platform growth despite continued GAAP losses. * Management discussed the quarter on its earnings call, with investors likely looking for guidance on bookings, monetization, platform safety and the outlook for user growth. Analysts' recent price targets have been mixed, with a reported median target near $56. * Revenue fell short of Wall Street expectations of roughly $1.63 billion to $1.7 billion. The company also remained unprofitable, reporting a $227 million net loss, a $283 million operating loss and a negative net margin of 17.6%. * Engagement trends were notably weak: average daily users declined 9% to 138 million, while engagement hours dropped 15% to 34 billion. Those declines raise concerns about future bookings, advertising and virtual-currency spending. * Roblox's liabilities increased to approximately $10.1 billion, operating cash flow declined from the prior year, and reported insider activity showed sales without purchases over the past six months. A shareholder law firm also announced an investigation, adding another risk factor for investors. Wall Street analyst weigh in. Several equities research analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft downgraded shares of Roblox from a "buy" rating to a "hold" rating and dropped their price target for the stock from $56.00 to $38.00 in a research note on Friday, July 31st. Roth Capital reissued a "buy" rating and issued a $84.00 price objective (up from $78.00) on shares of Roblox in a research report on Monday. UBS Group raised their target price on Roblox from $45.00 to $53.00 and gave the company a "neutral" rating in a research note on Wednesday, October 14th. JPMorgan Chase & Co. boosted their price target on Roblox from $40.00 to $53.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 14th. Finally, Piper Sandler reissued a "neutral" rating and issued a $47.00 price target (down from $50.00) on shares of Roblox in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $54.08. About Roblox. Roblox Corporation operates Roblox, an online platform where users can create, publish, and participate in interactive digital experiences. The platform supports a broad range of user-generated content, including games, social spaces, entertainment, educational activities, and virtual events. Roblox provides development tools through Roblox Studio, enabling creators and developers to design experiences and build virtual items and environments. Users can customize avatars, communicate with others, and access content across computers, mobile devices, consoles, and other supported platforms. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Roblox, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Roblox wasn't on the list. While Roblox currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely. Continue following MarketBeat