RBLX

- Roblox is scheduled to report its September 2026 quarter on 29 October, with analysts expecting a quarterly loss of $0.41 per share on projected revenue of $1.63b, which would represent a year over year decline in both metrics. - Despite those forecasts, recent upward revisions to earnings estimates and a positive Earnings ESP of 8.54% highlight investor focus on how efficiently Roblox converts its large engaged user base into monetization, rather than on headline revenue alone. - We will now look at how Roblox's investment narrative could be affected by the upbeat Earnings ESP ahead of its next quarterly report. Compare Roblox's setup ahead of earnings with hand picked opportunities on our screener of 20 high quality undiscovered gems that analysts think the market has yet to fully price in. To own Roblox, you need to believe the platform can turn its large, global user base and creator ecosystem into steadily improving monetization while managing heavy investment and creator payouts. The current setup ahead of the September 2026 quarter keeps that question front and center, since the market already expects a quarterly loss and softer revenue. The key short term catalyst is whether bookings, engagement from older users, and newer monetization formats like digital goods and ads show progress toward better unit economics. The main risk is that higher creator payouts, infrastructure spending, and reliance on viral experiences continue to weigh on profitability. The latest earnings expectations do not materially change that trade off. The recent focus on Roblox's Earnings ESP ties directly back to execution on its growth projects. International expansion, creator tools, and a broader digital economy on the platform require sustained spending. Any upside surprise on margins or per user monetization would suggest these bets are starting to scale more efficiently, even if headline revenue growth looks modest this quarter. If reported results still show losses and heavy capital needs with limited improvement in profitability metrics, that would keep existing concerns around volatility, insider selling, and rich P/S multiples alive. For you, the question is whether the expected revenue growth and potential value gap compensate for the risk that Roblox remains unprofitable for several more years while pursuing a larger entertainment market. Roblox's narrative projects US$10.2b revenue and US$1.2b earnings by 2029. That profile assumes 21.3% yearly revenue growth and an earnings swing of about US$2.2b from a loss of US$1.0b today to the forecast consensus earnings level. Uncover why Roblox's fair value indicates an 8% potential downside to its current price that leaves little room for error. One optimistic twist on Roblox focuses on subscriptions. Bullish analysts think features like Roblox Reality could help shift part of the business toward recurring paid tiers. They were penciling in revenue growth of about 28.4% a year and earnings of roughly US$1.4b by 2029. Those projections were set before this earnings update, so you may want to see how such forecasts evolve once the new numbers are out. Explore 5 other Roblox fair value estimates, including one that suggests as much as 35% potential upside from the current price. Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so consider trusting your own judgment. - A great starting point for your Roblox research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. - See our latest analysis for Roblox. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, which makes it easy to evaluate Roblox's overall financial health at a glance. If the setup around Roblox has you thinking about portfolio balance, it can help to line it up against other opportunities that share some of the qualities you care about most. The Simply Wall St Screener lets you filter by fundamentals and risk profile so you can compare potential ideas side by side. - For investors who want quality at a reasonable entry point, review companies on our list of 30 high quality undervalued stocks that pair stronger fundamentals with prices the market may not fully reflect. - If income is a priority, scan through the 6 dividend fortresses to spot businesses with higher yields that might complement a growth focused stock like Roblox. - For those who care most about resilience, check the 30 resilient stocks with low risk scores and see which companies score better on financial strength and risk metrics. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RBLX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Roblox (RBLX) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This online gaming platform is expected to post quarterly loss of $0.41 per share in its upcoming report, which represents a year-over-year change of -10.8%. Revenues are expected to be $1.63 billion, down 15.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.11% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Roblox, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +8.54%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Roblox will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Roblox would post a loss of$0.33 per share when it actually produced a loss of -$0.26, delivering a surprise of +21.21%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Roblox appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Churchill Downs (CHDN), another stock in the Zacks Gaming industry, is expected to report earnings per share of $1.28 for the quarter ended September 2026. This estimate points to a year-over-year change of +17.4%. Revenues for the quarter are expected to be $696.82 million, up 2% from the year-ago quarter. The consensus EPS estimate for Churchill Downs has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.31%. When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Churchill Downs will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Roblox Corporation (RBLX) : Free Stock Analysis Report Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Roblox recently saw stronger-than-expected third-quarter engagement, driven by the viral success of Steal an Egg, prompting Wedbush to raise its estimates while management prepares to report Q3 2026 results after market close on October 29. - This rebound in activity follows earlier headwinds from tighter safety measures that weighed on user trends, highlighting how quickly fresh viral content can influence perceptions of Roblox's long-term platform strength. - Next, we'll explore how this renewed engagement momentum, particularly around Steal an Egg, could reshape Roblox's longer-term investment narrative. Invest in the nuclear renaissance through our list of 16 elite nuclear energy infrastructure plays powering the global AI revolution. To own Roblox, you have to believe its user‑generated platform can keep attracting and monetizing players even as safety rules tighten and competition stays intense. The Steal an Egg‑driven engagement surprise may support the near term catalyst around Q3 2026 guidance, but the biggest near term risk remains whether viral hits can arrive consistently enough to offset the earlier drag from stricter controls and justify continued heavy investment. Among recent announcements, the global rollout of Roblox Kids and Roblox Select accounts is especially relevant. Those safety and age‑based controls appeared to pressure engagement and bookings earlier in 2026, and the latest rebound around Steal an Egg tests whether Roblox can balance stricter protections with enough fresh content to sustain user activity, creator economics, and the Q3 engagement narrative investors are now focused on. Yet behind the excitement around Steal an Egg, investors should be aware that Roblox's dependence on a few viral hits... Read the full narrative on Roblox (it's free!) Roblox's narrative projects $10.1 billion revenue and $1.2 billion earnings by 2029. This requires 21.3% yearly revenue growth and a $2.2 billion earnings increase from -$1.0 billion. Uncover how Roblox's forecasts yield a $48.32 fair value, a 6% upside to its current price. Some of the lowest estimate analysts were already cautious, assuming about 15 percent annual revenue growth and no profits within three years, so this engagement surprise could eventually challenge that view. Explore 6 other fair value estimates on Roblox - why the stock might be worth less than half the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. - A great starting point for your Roblox research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. - Our free Roblox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Roblox's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: - AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. - Capitalize on the AI infrastructure supercycle with our selection of the 92 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. - Uncover the next big thing with 10 elite penny stocks that balance risk and reward. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RBLX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- Jefferies said the stock's roughly 30% rally since second-quarter results reflects an overly optimistic bookings outlook. - The firm expects Roblox's recovery in U.S. and Canada users and bookings to be "longer and more costly" than the market expects. - It added that Roblox's new discovery algorithm could limit short-term user growth by favoring games with stronger long-term retention. Roblox (RBLX) stock fell in early morning trade on Monday after Jefferies downgraded the shares, stating that the roughly 30% rally since the company's second-quarter results had priced in too much improvement in bookings. Jefferies downgraded Roblox to 'Underperform' from 'Hold' while keeping its price target at $38, according to a note to investors cited by TheFly. The target implies about 18% downside from Friday's close. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox RBLX stock fell nearly 5% in premarket trading. On Stocktwits, retail sentiment around the company remained in 'bearish' territory over the past day. Jefferies said Roblox's 30% rise since its second-quarter results "reflects an overly optimistic view" of bookings over the next 12 months. The firm expects the recovery in users and bookings in the U.S. and Canada to be "longer and more costly" than the market expects. Jefferies also flagged Roblox's new discovery algorithm, which favors games with stronger long-term retention. The firm expects the algorithm change to limit short-term user growth over the next few quarters, even though it could improve engagement and the quality of the games surfaced to users over time. Jefferies remains positive on Roblox's efforts to expand into new game genres and attract more users aged 18 and older. Daily users in that demographic rose 32% in the second quarter. In the second quarter (Q2), Roblox reported bookings of about $1.6 billion, up 8% from a year earlier and at the low end of its guidance. That compared with 43% growth in the first quarter. Revenue rose 36% to about $1.5 billion, while daily active users increased 10% to 123 million. Free cash flow climbed 66% to $294 million, although the company reported a net loss of $185 million. Management attributed the weaker bookings growth in part to lower spending per hour among younger users in the U.S. and Canada. Those players had moved away from the viral games that drove unusually high spending in 2025. The discovery algorithm change added another layer of uncertainty. Roblox guided for third-quarter bookings to decline 14% to 18% and withdrew its full-year guidance. Last week, a Los Angeles judge allowed Los Angeles County's lawsuit against Roblox to proceed after rejecting the company's attempts to have the case dismissed. The county alleges that Roblox failed to provide adequate safeguards around age verification, moderation and interactions between children and adults, exposing young users to sexual exploitation and other harmful content. The Los Angeles case is also part of a broader wave of legal scrutiny. Other government entities, including Texas, have pursued similar claims, while an Ohio securities lawsuit alleges that Roblox misled investors about its child-safety protections. Competition is another consideration, with Meta's (META) new AI creation tools posing a potential challenge to Roblox's position in user-generated content. Roblox's third-quarter (Q3) report, scheduled for Wednesday, is the next test of whether bookings are recovering. Wall Street expects the company to report a loss per share of around $0.42 on $1.63 billion in revenue. Read also: MAG 7 Voices: Jensen Huang, Elon Musk, Mark Zuckerberg Shaped A Week Of AI Debate For updates and corrections, email newsroom[at]stocktwits[dot]com. Prabhjote Gill has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - Anthropic Introduces Claude Sonnet 5.5, Says It's Faster And Cheaper For Most Work - Anthropic Introduces Claude Sonnet 5.5, Says It's Faster And Cheaper For Most Work - Tesla Pushes Roadster Event To Oct. 15 After Storm Forecast, Says It 'Can Only Be Held Outdoors'

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Gross revenue remained flat at approximately $3 million due to macro factors including World Cup spending, tariff uncertainty, and evolving Roblox brand policies. Net revenue increased 16% sequentially to $1.24 million, reflecting a strategic shift toward higher-quality revenue streams and improved gross margins of 41%. Operational efficiency improved through a 30% increase in implementation team utilization for billable client activity compared to the first quarter. The Misfits Ads acquisition was integrated without increasing the overall cost base, successfully adding programmatic capabilities and turnkey media solutions. Commercial momentum is evidenced by weighted pipeline per seller increasing to $2.8 million from $1.78 million at the end of the first quarter. Strategic positioning shifted from selling specific products to offering cross-channel audience optimization across mobile, CTV, Roblox, and web platforms. Financial foundation was strengthened by eliminating all outstanding preferred stock and maintaining a cash position of $6.7 million. Management reaffirmed the target of achieving adjusted EBITDA profitability in the fourth quarter of 2026. Future growth is dependent on converting the expanded commercial pipeline and leveraging the upgraded sales team under new leadership. The company anticipates that existing liquidity is sufficient to fund operations for the foreseeable future without needing additional capital raises. Strategic focus remains on maintaining a flat cost structure while scaling revenue through higher-margin programmatic and managed services. Management intends to explore digital asset sector opportunities only when they present meaningful value for shareholders through a disciplined approach. Completed the integration of Misfits Ads assets, resulting in a total company headcount that remains below pre-acquisition levels. Successfully simplified the capital structure by removing the final layers of preferred stock, following the elimination of debt in the prior year. Identified geopolitical events, such as the Iran war, as specific macro headwinds impacting broader advertising budgets during the period. Launched a youth and family marketplace to provide advertisers with a single point of access to kids-safe media within gaming channels. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the increase to new sales leadership opening opportunities, a broader product set, and the attractive pipeline inherited from the Misfits transaction. The path relies on converting the high volume of opportunities in the pipeline while maintaining strict cost discipline and utilizing the upgraded infrastructure. Management emphasized that the current cost structure is sufficient to support the revenue growth needed for breakeven. Programmatic solutions offer more 'predictable' revenue than traditional RFPs because inventory can be purchased seamlessly on a daily basis. Targeted inventory tends to become a 'staple' for clients once performance is proven, leading to more consistent budget allocations. The current GAAP OpEx of approximately $5 million is considered close to the baseline required to support the business. Further efficiency may be found by shifting more internal resources from overhead into billable cost of goods as revenue volume increases.

Roblox Corporation (RBLX) delivered a disappointing earnings report this week, triggering a sharp sell-off as investors questioned the company's ability to reignite its once-rapid growth. One of the biggest beneficiaries of the pandemic-era gaming boom, this platform is now facing mounting skepticism over whether it can sustain growth in a more challenging environment. The pressure intensified after Roblox reported its Q2 FY2026 results on Thursday, July 30. Shares slipped 2.9% on the day of the earnings release before plunging another 26.9% in the next trading session, marking the stock's steepest single-day decline on record. Notably, the sell-off came despite the company posting EPS that beat Wall Street's expectations. General Motors vs. Ford: 1 Auto Giant Is Winning the EV Race Jeff Bezos Says He’s Selling $1 Billion In Amazon Stock Every Year to Fund Blue Origin — ‘It’s The Most Important Work I’m Doing’ 1 Japanese Company Just Waved a Red Flag for Micron Stock. How to Play It Here. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Instead, investors focused on bookings, Roblox's preferred measure of platform spending. Bookings increased 8% year-over-year (YOY) in Q2, a sharp slowdown from the 70% growth reported in Q3 FY2025. The result also came in at the lower end of management's guidance, reinforcing concerns that platform spending is losing momentum. Roblox further unsettled investors by withdrawing its full-year FY2026 guidance, citing increased business variability and ongoing platform updates. Without updated guidance, investors have less visibility into the company’s near-term growth trajectory, adding another layer of uncertainty. Founded in 2004 and headquartered in San Mateo, California, Roblox is a global immersive platform centered on communication and shared digital experiences. With a market cap of $24.6 billion, the company's ecosystem includes the Roblox Client, where users access millions of experiences; Roblox Studio, a free development platform that enables creators to build and publish content; and Roblox Cloud, the infrastructure that powers the platform behind the scenes. Investor sentiment toward the stock has remained weak as slowing growth and broader market pressures continue to weigh on shares. Roblox’s shares have fallen 71.28% over the past 52 weeks and are down 53.7% year-to-date (YTD). The weakness has persisted more recently as well, with the stock losing another 32.2% over the last month, primarily due to its latest earnings release. RBLX stock is currently trading at 3.79 times sales, well above the industry average. Even after its steep decline, the stock continues to command a premium valuation compared with many of its peers, suggesting investors are still assigning meaningful long-term value to the business. Roblox reported mixed Q2 FY2026 results on July 30. Revenue climbed 35.9% YOY to $1.47 billion but missed Wall Street's forecast of $1.60 billion. Loss per share came in at $0.26, comfortably ahead of analysts' expectation for a loss of $0.34 per share. User engagement remained resilient despite tough YOY comparisons. Daily active users increased 10% to 123 million, while hours engaged rose 5% to 29 billion. However, stronger user activity did not translate into higher spending. Bookings rose just 8% YOY, finishing at the lower end of management's guidance range. Executives said monetization per hour weakened, particularly among younger users in the United States and Canada. They attributed the shift to players spending more time in newer and evergreen experiences rather than the highly monetized viral games that drove stronger spending in 2025. One bright spot was the company's cash generation. Operating cash flow surged to $318 million from $199 million a year ago, while free cash flow increased to $294 million from $177 million, highlighting Roblox's ability to generate cash despite slowing top-line momentum. Looking ahead, management expects Q3 FY2026 revenue to grow between 4% and 10% YOY. However, bookings are projected to decline 14% to 18% from the prior year, marking Roblox's first forecast for negative bookings growth. Additionally, the company expects operating cash flow to range between $110 million and $175 million, while free cash flow is projected to come in between negative $60 million and $5 million, reflecting previously disclosed back-half-loaded capital expenditures. Meanwhile, analysts expect Roblox to report a Q3 FY2026 loss of $0.36 per share, up one cent from the same period last year. For the full fiscal year, Wall Street forecasts the company's loss per share will improve 11.69% to -$1.36 in FY2026, followed by another 15.44% improvement to -$1.15 in FY2027. While Wall Street has become more cautious following the latest results, analysts have not abandoned the long-term investment case. Roblox currently holds an overall "Moderate Buy" rating. Among the 28 analysts covering the stock, 10 rate it "Strong Buy," one recommends "Moderate Buy," 15 suggest "Hold," and two maintain "Strong Sell" ratings. Price targets indicate many analysts still believe the recent sell-off has created a long-term opportunity. The average price target of $52.96 implies potential upside of 42.6% from current levels. The Street-High target of $95 points to an even larger gain of 155.8%, underscoring the view that Roblox could deliver substantial upside if it successfully restores growth and improves monetization. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Interested in Roblox Corporation? Here are five stocks we like better. Roblox’s Q2 revenue grew 36% to $1.5 billion, while bookings rose 8% to $1.6 billion, near the low end of guidance. Daily active users increased 10% to 123 million, and free cash flow jumped 66% to $294 million. Bookings were pressured by younger users shifting to lower-monetizing games and discovery changes that favor long-term retention over near-term spending. Management expects retention gains to eventually offset the monetization decline, but gave no specific timeline. Roblox forecast Q3 bookings to decline 14%–18% year over year to $1.58 billion–$1.65 billion, citing difficult comparisons and continued monetization weakness. The company is also investing in safety, AI, adult-user growth and new products such as Build and Moments. Why These Three Big Buybacks Are Sending Very Different Signals to Investors Roblox (NYSE:RBLX) reported second-quarter 2026 revenue growth of 36% to $1.5 billion, while bookings rose 8% to $1.6 billion, landing at the low end of the company’s guidance range. Management said bookings fell short of its internal expectations primarily because younger users shifted toward games with lower hourly monetization and because changes to its recommendation system prioritized long-term retention over near-term spending. Daily active users increased 10% year over year to 123 million, while engagement hours rose 5% to 29 billion. Operating cash flow grew 60% to $318 million and free cash flow increased 66% to $294 million. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now MarketBeat Week in Review – 05/04 - 05/08 “While bookings growth fell within our guidance range, it was below our internal goal,” Founder, President and CEO David Baszucki said. The company remains focused on its long-term objective of capturing 10% of the global gaming market and a greater share of the U.S. gaming market, he said. Chief Financial Officer Naveen Chopra said monetization, measured by bookings per hour, was below the company’s forecast, particularly among users under age 13. He attributed the shortfall to a greater-than-expected move away from high-monetizing viral games from 2025 toward a mix of newer and evergreen experiences with lower monetization per hour. → Microsoft Just Flipped the AI Spending Narrative Overnight Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook The effect was compounded by Roblox’s revised discovery algorithms, which are designed to recommend games based more directly on expected long-term retention. The changes provided more impressions to highly retentive experiences at the expense of games that may generate stronger near-term monetization, according to management. Chopra said internal testing indicates that better retention should eventually offset the initial bookings impact. In tests, the company has seen a relatively immediate improvement in retention and engagement hours, alongside an immediate reduction in dollars per hour. Roblox expects the benefits to exceed the monetization decline over time, though Chopra declined to provide a specific timeline. → Carrier Earnings Could Send the Stock to a New All-Time High Baszucki said the company is aiming to encourage more “evergreen-type games” that keep players engaged over longer periods rather than experiences emphasizing short-term monetization. Roblox is also using age-check data to improve recommendation targeting by region and age cohort, which management believes could help mitigate the monetization pressure. Another, less significant contributor to the bookings shortfall was Roblox’s decision to disable sales of cross-experience game passes, Chopra said. For the third quarter, Roblox forecast bookings of $1.58 billion to $1.65 billion, representing a year-over-year decline of 14% to 18% because of difficult comparisons. The company expects daily active user trends to benefit from seasonal factors, the reinstatement of Roblox in Russia, and its discovery changes, but said monetization weakness is likely to continue. Roblox did not provide revised full-year guidance, citing greater variability in potential outcomes and ongoing platform updates. Chopra said the company is navigating a normalization period following strong growth last year while simultaneously making changes to safety, discovery and product offerings. International user growth remained strong during the quarter. Daily active users in Japan rose 67% year over year and increased 64% in India. Hours engaged in Japan and India increased 61% and 59%, respectively. Roblox was also unblocked in Russia late in the quarter, allowing users there to return to the platform. From a cost perspective, Chopra said reduced bookings will create fixed-cost deleveraging, while investments in artificial intelligence-powered initiatives will increase infrastructure spending. He said about half of expected year-over-year margin compression in the third quarter reflects fixed-cost deleveraging, with the other half tied to AI investments, including cloud GPU capacity. Roblox continued expanding its age-checking program during the quarter. Baszucki said age-check penetration reached 57% globally, including nearly 80% in Australia and roughly 70% in the U.S. and U.K. Among U.S. users under age 18, age-check penetration reached 75%. The company has limited chat access to users who have completed age checks and introduced age-banded communications. It also rolled out Roblox Kids and Roblox Select, age-based content experiences, in June. Roblox does not allow image sharing in chat, Baszucki said. Management views its safety investments as supportive of long-term growth, particularly as it seeks to expand among users 18 and older. Baszucki said users 18 and above account for nearly one-third of Roblox’s age-checked U.S. daily active users, while U.S. users ages 18 to 34 are growing daily active users and hours at approximately 40% year over year. The company said it is pursuing adult growth by expanding the types of games it supports, including 2D games, strategy titles and other formats beyond its historical emphasis on 3D experiences. Roblox is also working on Roblox Reality, an effort intended to support photorealistic multiplayer gaming, and plans to initially offer access to its enhanced “photo reality” mode through a subscription. Roblox recently announced Build, an AI-enabled creation product designed to let users describe and develop game experiences conversationally before moving projects into Roblox Studio. Build is already live in New Zealand, where Baszucki said the company is seeing more people using Build each day than Roblox Studio. The company also began testing its Moments video feature for users age 16 and older in Canada, New Zealand and Singapore. Moments will include game captures and short-form influencer videos, with eventual plans to include creator viewing and live gameplay features. Baszucki said early tests showed substantial gains in Moments user retention. In the third quarter, Roblox plans to deploy in-experience friend chat, bringing real-time text messaging into Roblox games. Baszucki said the company’s longer-term communications roadmap includes options for video chat with friends and streaming through Roblox avatars. Chopra said Roblox’s capital-allocation priority remains investing in organic growth through research and development, staffing, infrastructure and AI initiatives. The company also has capacity for share repurchases and potential acquisitions, which historically have focused largely on technical talent. 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. 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]. The article "Roblox Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

When you buy through links on our articles, Future and its syndication partners may earn a commission. Stocks were volatile Friday as market participants weighed mixed reactions to a pair of Big Tech earnings reports and surging Treasury yields. The main equity indexes finished the session higher, though, and snapped their weekly losing streaks. At the close, the Dow Jones Industrial Average was up 0.5% at 52,485, the broader S&P 500 was 0.7% higher at 7,489, and the tech-heavy Nasdaq Composite had gained 1.0% to 25,373. But stocks' gains were contained as borrowing costs continued to climb. The 2-year Treasury yield jumped 4.1 basis points to 4.27%, while yields on the 10-year Treasury (+4.9 basis points to 4.712%) and 30-year bond (+4.6 basis points to 5.253%) hit their highest levels since 2007. Today's rise in Treasury yields came after Cleveland Federal Reserve President Beth Hammack, who voted for a quarter-point rate hike at the July Fed meeting, said in a statement that "now is the time" for the central bank to act to bring inflation down. "The longer that high inflation persists, the more challenging and costly it can be to bring it back down." Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day. Minneapolis Fed President Neel Kashkari, who also dissented in this week's Fed decision to hold interest rates steady in favor of a quarter-percentage-point hike, issued his own statement, saying that he'd prefer to raise rates now than to allow high inflation to become entrenched. "The fixed-income complex is moving further away from the central bank's current midpoint of 3.63% as bond vigilantes protest [Fed] Chair Kevin Warsh's overly patient posture and dial up inflation expectations, amid a monetary policy institution that isn't following through on its hawkish rhetoric at this juncture," explains José Torres, senior economist at Interactive Brokers. In single-stock news, Wall Street was once again tuned into earnings from a pair of Magnificent 7 stocks. Amazon (AMZN) emerged as a clear winner on Friday, surging 15.3% after the e-commerce and cloud giant reported a second-quarter beat on strong revenue growth in its cloud segment. Track all markets on TradingView Amazon also gave soft third-quarter revenue guidance due to Prime Day occurring in June this year, and lifted its full-year capital expenditures budget to $220 billion from $200 billion on higher costs for memory chips. Bill Birmingham, managing director at REX Financial, REX Shares' parent company, says Amazon's quarter was "exceptional," with evidence that the company's custom silicon and artificial intelligence (AI) commercialization are gaining traction noteworthy. And while it's worth keeping an eye on the lighter revenue guidance and higher spending levels, Birmingham said the print "provides real evidence that AI capex is being monetized." Apple (AAPL), on the other hand, slumped 7.4%, as weak current-quarter revenue guidance overshadowed higher-than-expected fiscal third-quarter earnings and revenue. Track all markets on TradingView "We paid more per memory in the March quarter than the December quarter," said Tim Cook on the earnings call, his last as CEO of Apple. "And then as I alluded to last quarter, we expected to pay significantly more in the June quarter than the March quarter, and that is what happened. It was partially offset by the benefit of carry-in inventory." Cook added that the company expects to pay even more for memory costs in its September quarter. Argus Research analyst Jim Kelleher reiterated his Buy rating and $375 price target on Apple after earnings, representing implied upside of more than 20% to current levels. "As we see it, Apple's perpetually refreshed roster of highly desirable products provides a unique advantage over industry rivals," says Kelleher. And dips should be bought on this high-quality stock to "establish or dollar-average into positions in AAPL," he adds. While Apple was the worst Dow Jones stock today, Roblox (RBLX) was one of the worst stocks period. Shares plunged 26.9% — their biggest one-day decline ever — after the video-game company reported a second-quarter bookings miss and forecast lower-than-expected third-quarter bookings. Track all markets on TradingView Roblox also said it expects Q3 revenue to come in well below what Wall Street is expecting and did not offer a full-year forecast. This doesn't seem to worry Oppenheimer analyst Martin Yang, who maintained an Outperform (Buy) rating on the communication services stock. "Retention remains stable and content is diversifying," he says, though cautioning that it's still uncertain as to when monetization will catch up to retention. Yang isn't the only one holding out hope for RBLX. Of the 34 analysts covering Roblox who are tracked by S&P Global Market Intelligence, 19 say it's a Buy, 13 have it at Hold and two rate it a Sell. This works out to a consensus Buy recommendation. Are Higher Rates on the Horizon? Here's How to Prepare Your Portfolio Navigating the New Fed: 5 Conflicts Kevin Warsh Has to Tackle Now Think You Know About Dividend Stocks? Take Our Short Quiz