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1. Company Snapshot

1.a. Company Description

Roblox Corporation develops and operates an online entertainment platform.The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform.It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific, and internationally.


The company was incorporated in 2004 and is headquartered in San Mateo, California.

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1.b. Last Insights on RBLX

Breaking News: Roblox Corporation reported strong Q4 earnings, with revenue of $1.4 billion, up 43% year-over-year, beating Wall Street expectations. Daily active users rose to over 144 million, driving the stock's post-earnings surge. Bookings, users, and engagement all saw significant growth, topping expectations. The company's shares jumped 8.4% in premarket trading following the earnings release. Diane King Hall attributes the stock's surge to the strong user metrics. No analyst recommendations are available.

1.c. Company Highlights

2. Roblox Corporation's Q4 Earnings: A Strong Performance

Roblox Corporation delivered a robust Q4 performance, with revenue reaching $1.4 billion, up 43% year-over-year, and bookings at $2.2 billion, a 63% increase from the previous year. The company's actual EPS loss was $0.45, narrower than the estimated loss of $0.4671. The strong growth was driven by a 55% year-over-year increase in bookings and a significant rise in concurrent users, with 45 million concurrents recorded in August 2025.

Publication Date: Feb -06

📋 Highlights
  • Revenue and Bookings Growth:: 36% YoY revenue growth to $1.4 billion in Q4, with bookings surging 63% YoY to $2.2 billion.
  • Concurrency Records:: 45 million concurrent users in August 2025, and Steel of Brain Rot peaked at 25.4 million concurrent players.
  • Regional Expansion:: APAC revenue grew 96% YoY, while Indonesia saw over 700% YoY growth, outpacing US/Canada's 41% growth.
  • Age Demographic Shift:: 18+ user base grew 50% YoY, with age verification enabling 8+ vertical expansion and no engagement drop post-check.
  • 2026 Guidance:: Bookings growth forecasted at 22–26%, targeting 10% of the global gaming content market (currently at 3.4%).

Financial Performance and Guidance

The company's guidance for 2026 expects bookings growth of 22% to 26%, with margins expected to be relatively flat or slightly decline year-over-year. Analysts estimate next year's revenue growth at 21.1%. The company's performance was driven by strong growth across all regions, with the US and Canada growing 41% year-over-year, APAC growing 96%, and Indonesia growing over 700%.

Operational Highlights and Future Plans

Roblox Corporation is introducing novel game expansion to cater to older audiences and has implemented age-checking for users participating in communication on the platform. The company is optimistic about the opportunity to target the 18+ age group, having seen significant growth in this demographic. As David Baszucki mentioned, "We're age-checking all users who participate in communication on our platform, and we have been able to find a bigger growth opportunity in the 18 demographic than previously assumed."

Valuation and Growth Prospects

With a P/S Ratio of 9.52 and an EV/EBITDA of -60.52, the market is pricing in significant growth expectations for Roblox Corporation. The company's ROE is -299.67%, and ROIC is -26.53%, indicating that it is still in a growth phase, investing heavily in its business. As the company continues to expand its user base and increase its revenue, its valuation multiples will be closely watched to assess whether its growth prospects are being met.

3. NewsRoom

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Roblox earnings: CEO talks gaming, AI, and user growth

Feb -06

Source: youtube.com

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Roblox (RBLX) Reports Strong Q4 Results with Impressive Engagement Growth

Feb -06

Source: gurufocus.com

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Roblox Leans Into 'Gold Standard' Safety Features

Feb -06

Source: youtube.com

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Roblox Stock Bounces Off Q4 Losses with Key User Metrics

Feb -06

Source: schaeffersresearch.com

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Roblox (RBLX) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -06

Source: zacks.com

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Friday's Earnings Movers: RBLX Rallies, MOH "Shockingly Weak," AFRM Beats

Feb -06

Source: youtube.com

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Stock Market Today: Futures Point Higher After Indexes Dive; Nasdaq, S&P 500 Poised for Weekly Losses; Bitcoin Sinks Near $60,000 Before Rebounding

Feb -06

Source: investopedia.com

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Roblox surges on strong bookings, user growth

Feb -06

Source: proactiveinvestors.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (47.20%)

6. Segments

Internet Information Providers

Expected Growth: 47.2%

Roblox's user-generated content and social features drive growth in the internet information providers segment, with a large user base and increasing monetization opportunities.

7. Detailed Products

Roblox Platform

A user-generated game platform that allows users to create and play a wide variety of games in a virtual world.

Robux

A virtual currency used to purchase in-game items, accessories, and perks.

Premium Subscription

A monthly subscription service that offers exclusive benefits, such as bonus Robux, access to premium items, and enhanced customization options.

Advertising

A platform that allows brands to reach a large and engaged user base through targeted advertisements.

Roblox Studio

A game development tool that allows users to create and publish games on the Roblox platform.

8. Roblox Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Roblox's unique user-generated game platform and large user base make it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative gaming platforms, Roblox's strong brand loyalty and user engagement mitigate this power.

Bargaining Power Of Suppliers

Roblox has a large pool of developers and creators, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

While there are barriers to entry in the gaming industry, new entrants can still emerge, but Roblox's established brand and user base provide a competitive advantage.

Intensity Of Rivalry

The online gaming industry is highly competitive, with many established players, making rivalry intense.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.60%
Debt Cost 3.95%
Equity Weight 6.40%
Equity Cost 12.07%
WACC 4.47%
Leverage 1463.22%

11. Quality Control: Roblox Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Roblox

A-Score: 4.4/10

Value: 4.3

Growth: 5.2

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Perficient

A-Score: 4.1/10

Value: 3.2

Growth: 7.2

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Zebra Technologies

A-Score: 3.7/10

Value: 3.4

Growth: 5.2

Quality: 6.6

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Silicon Labs

A-Score: 3.4/10

Value: 4.6

Growth: 1.9

Quality: 2.8

Yield: 0.0

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Remitly Global

A-Score: 3.2/10

Value: 3.2

Growth: 6.0

Quality: 6.2

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Allegro MicroSystems

A-Score: 3.1/10

Value: 2.4

Growth: 1.6

Quality: 3.9

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.42$

Current Price

66.42$

Potential

-0.00%

Expected Cash-Flows