The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 46 | — | 20.8x | Around median | |
Growth | 79 | 38.1% | 6.1% | Top tier | |
Quality | 22 | -357.7% | 6.6% | Bottom tier | |
Safety | 39 | 2.0x | 0.7x | Bottom tier | |
Capital Return | 48 | — | 2.02% | Around median | |
Momentum | 4 | -57.9% | 4.1% | Bottom tier | |
Sentiment | 45 | 20 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Roblox Corporation is a leading global platform in the field of gaming and 3D interactive content, enabling millions of users to create and share their own experiences and play with others in integrated virtual worlds. The company generates its revenue primarily through the sale of its virtual currency Robux, which players use to purchase cosmetic items and special features within games, in addition to digital advertising and premium membership subscriptions, and pays a portion of these revenues to developers through the DevEx system dedicated to content creators.
During the first quarter of fiscal year 2026, Roblox Corporation achieved strong financial results, with revenue reaching $1.4 billion, a growth of 39% compared to the previous year, while total bookings reached $1.7 billion, a growth of 43% year-over-year. However, the company recorded a net loss of $246.0 million, with earnings per share of -$0.35, compared to a net loss of $1.1 billion in the fourth quarter of 2025. On the other hand, operating cash flow jumped to $629 million, while free cash flow reached $596 million, a massive increase of 4,240% year-over-year.
Operationally, Daily Active Users (DAUs) increased by 35% to reach 132 million users, and engagement hours rose by 43% to reach 31 billion hours of engagement. Additionally, monthly unique payers increased by 52% to reach 31 million payers, driven by strong growth in international markets such as Japan and India, where engagement hours in Japan grew by 101% and in India by 91% year-over-year.
Roblox Corporation shares are currently trading within a 52-week range of $40.15 to $150.59, showing sharp volatility in market sentiment due to recent operational changes. Analyst consensus points to a general Buy recommendation with an average price target of $85.12, which lies between a low limit of $45 and a high limit of $141. Based on these data, the stock is currently trading below the analysts' average price target, reflecting a future growth opportunity if the company succeeds in overcoming short-term operational hurdles associated with new safety measures and regains its user growth momentum.
Figures in the text are as of 2026-06-22; the live price is shown at the top of the page.
The main reason for lowering the guidance is the operational hurdles resulting from the global implementation of the Age Check system for chat access in January 2026. This measure led to decreased engagement among unverified users and a decline in app store ratings, which negatively impacted organic new registration rates. As a result, the company now expects revenue growth of 20% to 25% and bookings growth of 8% to 12% for the full year.
Roblox Corporation announced a significant increase in the DevEx developer payout rate in the United States for users verified to be over 18 years old, with the rate rising from 26.6% to 37.8% starting June 8, 2026. The company requires these games to use the R15+ avatar framework and be classified as Novel Games. Through this step, management hopes to incentivize studios to create high-quality content suitable for older age groups, who spend at a rate 50% higher compared to younger users.
The Roblox Reality Project is an innovative, patent-pending technical architecture announced by the company on its blog in June 2026 to develop highly realistic, multiplayer games. The project integrates cloud simulation and high-resolution rendering technologies with a proprietary real-time video super upsampler AI model operating at 2K resolution and 60 Hz. The company plans to charge fees or subscriptions for using this service to offset cloud computing and inference costs in its own data centers.
Automated analysis for informational purposes only — not investment advice.
Roblox Corporation faced a series of class-action lawsuits in mid-June 2026, specifically on June 12, 16, 18, and 19, accusing it of misleading investors regarding its operational performance. These lawsuits came after the company experienced a sharp loss in its market value of approximately $6.7 billion due to declining user engagement data and the impacts of new safety policies. This negative legal news caused increased selling pressure on the stock, leading to an 8% drop in a subsequent trading session.
The number of daily active users in Europe and the United States decreased from about 60 million users in the third quarter of 2025 to 51 million users in the first quarter of 2026. A significant portion of this decline is attributed to the platform ban in Russia, which caused a loss of about 4 million daily active users, before the ban was regulatorily lifted on June 10, 2026. Management expects to sequentially regain daily active user growth momentum starting from the third quarter of 2026, coinciding with seasonal holidays and the implementation of improvements to chat features.