Roblox Corp (RBLX)

Price$43.31Cached quoteAs of 2026-09-05 01:32 UTC

AI: Fair-priced

Price checkThe shares look roughly fair because cash valuation is attractive only if recent weakness reverses.

Using the latest quote and 752 million fully diluted shares, the equity is worth roughly $29 billion. Against about $1.64 billion of trailing free cash flow—cash left after running and investing in the business—that is about 18 times cash flow. Subtracting roughly $5.1 billion of cash and investments net of debt lowers the business-value multiple to about 15 times. That looks attractive for rapid growth, but third-quarter guidance for free cash flow of negative $60 million to positive $5 million makes the trailing figure unusually uncertain. MarketWatch+1

Big pictureGrowth remains strong, but reported losses and heavy employee share pay weaken cash quality.

Revenue rose 36% year over year in the second quarter, while 2025 revenue also grew about 36%. Yet Roblox lost $1.07 billion in 2025 and another $429 million in the first half of 2026. Trailing free cash flow is much stronger at about $1.64 billion, but roughly $1.14 billion of trailing stock compensation paid employees with shares rather than cash. That helps current cash flow while increasing owners’ dilution. The coming quarter’s near-zero cash outlook shows cash generation can swing sharply with spending, creator payouts, and platform changes. SEC+1

Business strengthRoblox has a large cash cushion and promising older users, but dilution still matters.

At June 30, Roblox held $6.1 billion of cash, equivalents, and investments against about $1.0 billion of debt, giving it meaningful downside protection and room to invest. The platform also has a higher-value growth path: U.S. users over 18 monetized more than 50% better than younger users, and that group’s daily users grew 32% year over year. Roblox authorized up to $3 billion of buybacks and spent $380 million on 8.2 million shares by quarter-end, but fully diluted shares still rose 2%. Capital allocation is countering employee share issuance, not eliminating it. SEC+2SEC+2

What could change the storyOlder users could lift spending, but safety changes must stop hurting sign-ups and purchases.

The bear case is visible now: Roblox expects third-quarter bookings, a timelier measure of customer purchases, to fall 14% to 18% year over year after safety and discovery changes reduced monetization, especially among younger U.S. users. The bull case is that safer age-based accounts improve trust while older users and better discovery restore growth. I would want bookings growth back above roughly 15% and free cash flow sustainably above $1.5 billion to call the shares clearly cheap. Continued booking declines into 2027 would weaken that case. SEC+2Reuters+2

AI: News

Weak third-quarter outlookRoblox cut its near-term sales outlook as safety and discovery changes reduced spending.

On July 30, Roblox guided third-quarter bookings to $1.576 billion to $1.653 billion, a 14% to 18% decline from a year earlier and below the $1.77 billion analyst expectation reported by Reuters. Second-quarter bookings had still grown 8%, and daily users grew 10% to 123 million, but spending per hour weakened. Reuters reported a 14% after-hours share decline. The key issue is not the price move itself; it is whether the monetization slowdown proves temporary or resets Roblox’s growth path. Reuters+1

Australian safety undertakingAustralia imposed enforceable child-safety commitments that could add costs and product restrictions.

On August 19, Australia’s eSafety Commissioner secured a court-enforceable undertaking requiring stronger child-account privacy, tighter limits on adult contact with unknown children, better reporting, and an independent audit of age-estimation tools. Roblox has three months to implement the measures, with court action possible for noncompliance. No reliable same-event stock reaction was isolated. The value impact comes through added compliance costs and, more importantly, the possibility that stricter safety design further reduces engagement or spending before trust benefits appear. Reuters

First share buybackRoblox launched its first buyback to offset employee share issuance and signal balance-sheet confidence.

On May 19, Roblox authorized up to $3 billion of share repurchases and said it intended to buy back up to $1 billion during the following twelve months. Shares rose about 5% after hours in one reported reaction. By June 30, Roblox had repurchased 8.2 million shares for roughly $380 million. The program matters because employee share awards have steadily raised the share count; buybacks can protect each remaining owner’s percentage, although the company is still issuing enough equity that dilution has not disappeared. SEC+2Investing.com+2

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Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$4.89B	$3.60B	$2.80B	$2.23B	$1.92B	$923.9M	$508.4M
Gross profit	$3.82B	$2.80B	$2.15B	$1.68B	$1.42B	$684.0M	$386.0M
Gross margin	78.07%	77.76%	76.81%	75.39%	74.11%	74.03%	75.93%
Research & development	$1.57B	$1.44B	$1.25B	$873.5M	$533.2M	$201.4M	$107.1M
Operating expenses	$6.12B	$4.67B	$4.06B	$3.15B	$2.41B	$1.19B	$584.8M
Operating income	−$1.23B	−$1.06B	−$1.26B	−$923.8M	−$495.1M	−$266.1M	−$76.4M
Operating margin	−25.20%	−29.52%	−44.98%	−41.52%	−25.80%	−28.81%	−15.04%
EBITDA	−$1.01B	−$836.9M	−$1.05B	−$793.7M	−$419.5M	−$222.3M	−$48.8M
EBITDA margin	−20.58%	−23.23%	−37.54%	−35.67%	−21.86%	−24.06%	−9.59%
Net income	−$1.07B	−$935.4M	−$1.15B	−$924.4M	−$491.7M	−$253.3M	−$71.0M
Net profit margin	−21.78%	−25.97%	−41.15%	−41.54%	−25.62%	−27.41%	−13.96%
Basic EPSper basic share	-$1.54	-$1.44	-$1.87	-$1.55	-$0.97	-$1.39	-$0.44
Diluted EPSper diluted share	-$1.54	-$1.44	-$1.87	-$1.55	-$0.97	-$1.39	-$0.44

Review official source filings ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys14$2.2K disclosed value

Sells (SEC code S)583$1.20B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 8, 2026Form 4 · 10b5-1	Reinstra MarkChief Legal Off. & Corp. Sec.	SellClass A Common Stock	6.0K	$41.71	$249.3K	426.8K
Jun 1, 2026Form 4 · 10b5-1	Baszucki GregoryDirector	SellClass A Common Stock · indirect	3.1K	$47.14	$147.7K	8.97M
Jun 1, 2026Form 4 · 10b5-1	Baszucki GregoryDirector	SellClass A Common Stock · indirect	5.2K	$46.32	$240.9K	8.97M
Jun 1, 2026Form 4 · 10b5-1	Baszucki GregoryDirector	SellClass A Common Stock · indirect	3.1K	$47.14	$147.7K	1.29M
Jun 1, 2026Form 4 · 10b5-1	Baszucki GregoryDirector	SellClass A Common Stock · indirect	5.2K	$46.32	$240.9K	1.29M

Review ownership filings at SEC.gov ↗

Community posts

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@tickerstat19 hours ago
Roblox expands distribution and introduces creator wallet plans
Roblox ($RBLX) unveiled plans to let creators distribute games as standalone applications across mobile, PC and consoles, alongside browser-based play without an installation. It also announced a creator wallet designed to support real-curr ...
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Roblox Corp (RBLX)

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Roblox expands distribution and introduces creator wallet plans