| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | — | 17.8x | Around median | |
Growth | 88 | 41.3% | 7.1% | Top tier | |
Quality | 29 | -57.3% | 4.5% | Bottom tier | |
Safety | 40 | — | 2.6x | Around median | |
Capital Return | 46 | — | 2.12% | Around median | |
Momentum | 7 | -72.5% | 2.9% | Bottom tier | |
Sentiment | 42 | 20 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Roblox operates a digital platform for interactive content created by users and developers, combining experience discovery, a game engine, an economy, creation tools, cloud infrastructure, and safety systems. The financial business depends on user spending reflected in bookings, while the company seeks to expand monetization sources through subscriptions and advertising; it also plans to tie some higher-cost capabilities, including the ultra-high-fidelity Morpheus mode, to a paid subscription. Management targets Roblox reaching 10% of the global gaming market and estimates that the platform already captures 20% of gaming revenue generated by users under 18 years old in the United States.
In Q2 FY2026, revenue rose 36% year over year to $1.5 billion, while bookings increased only 8% to $1.6 billion and came in at the low end of the company's guidance range. Gross profit according to EDGAR data was approximately $1.2 billion, equivalent to a gross margin of nearly 80%, but the company recorded a net loss of $183 million and a loss per share of $0.26; the loss per share was better than expectations ranging from $0.30 to $0.33. In FY2025, revenue totaled $4.9 billion and gross profit was $3.8 billion, versus a net loss of $1.1 billion.
Daily active users reached 123 million in Q2 FY2026, up 10%, while engagement hours rose 5% to 29 billion hours. The operating mix reflects strong international expansion, with daily active users growing 67% in Japan and 64% in India, while hours increased 60% and 160%, respectively. Content has become less concentrated; the share of the top ten games declined from about 30% of engagement hours three years ago to approximately 20%, while users aged 18 years and older represent about one-third of U.S. daily active users who completed age verification.
The average analyst price target is $49.47, within a wide range of $30 to $95, and the average is approximately 65% below the 52-week range high of $142 and above its low of $33.88. A Neutral consensus and some analysts' downgrades to Sell reflect a reassessment driven by expectations that Q3 FY2026 bookings will decline between 14% and 18% and the withdrawal of full-year guidance. No meaningful price-to-earnings multiple is available given the $1 billion net loss recorded during the presented twelve-month period, so the valuation depends on Roblox's ability to convert user growth and free cash flow into sustainable profitability.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
The loss per share was not the main problem, as it reached $0.26 and was better than market expectations of between $0.30 and $0.33, while revenue came in at $1.5 billion. The pressure came from bookings of $1.6 billion reaching the low end of guidance due to weak bookings per hour, particularly among users under 13 years old. The company then forecast a Q3 FY2026 bookings decline of between 14% and 18% and withdrew its full-year guidance, followed by a one-day decline ranging from 25% to 29% on July 31, 2026 and August 1, 2026.
Yes, daily active users reached 123 million in Q2 FY2026, an annual increase of 10%, while engagement hours rose 5% to 29 billion hours. Daily active users grew 67% in Japan and 64% in India, while hours increased 60% and 160%, respectively. Users and hours for the U.S. 18-to-34 age group are also growing by approximately 40% annually, but these gains did not prevent weak monetization among younger age groups.
The algorithm gives greater weight to long-term retention and reduces the visibility of games focused on rapid monetization. Roblox's tests showed rapid improvement in retention and hours, but they also showed an immediate decline in dollars generated per hour, and the impact was greater than expected in Q2 FY2026. Management believes the test curves eventually cross so that retention gains exceed the initial bookings loss, but it did not specify a date for that point.
Automated analysis for informational purposes only — not investment advice.
The company launched Build in New Zealand as a conversational interface powered by internal artificial intelligence models for creating playable games, and said its daily user count there exceeded that of Roblox Studio. It is also testing Moments for the 16-years-and-older age group in Canada, New Zealand, and Singapore, and is working to integrate video, game discovery, and one-tap game launches. The plan also includes Reality and Morpheus for visual realism, support for two-dimensional games, and friends chat within experiences during Q3 FY2026.
The Q2 FY2026 net loss according to EDGAR was approximately $183 million, while the FY2025 net loss reached $1.1 billion. By contrast, operating cash flow in Q2 FY2026 rose 60% to $318 million, and free cash flow increased 66% to $294 million. The company plans to prioritize organic investment in research and development, people, and infrastructure, while using share repurchases primarily to offset dilution resulting from employee grants.
AgeCheck adoption in Q2 FY2026 reached approximately 57% globally, reached 70% in the United States and the United Kingdom, and approached 80% in Australia. The company restricted chat to those who completed age verification, implemented communication segmented by age groups, and does not allow image sharing within chat. Nevertheless, since July 30, 2026, the European Commission has been considering listing Roblox among the very large platforms subject to the Digital Services Act, which could increase content-monitoring obligations and compliance costs.
