Roblox Corporation

ticker: RBLX step: 01 generated: 2026-05-13 source: quick-research

Roblox Corporation (RBLX) — Business Overview

Business Description

Roblox is the world's largest user-generated 3D virtual experience platform, hosting millions of developer-created games and social spaces. With 380M+ monthly active users and 151.5M daily active users (Q3 2025), Roblox surpasses PlayStation Network and Xbox Live combined in scale. The platform is particularly dominant among users under 17, though the fastest-growing cohort is now users 13+ (growing from 40M to 101M in two years). FY2025 revenue was $4.891B (+36% YoY); FY2024 FCF reached $641M (+367% YoY), a landmark transition from cash-burning growth to self-funding platform.

Revenue Model

Robux virtual currency (97% of bookings): users purchase Robux to buy virtual items, game passes, avatar accessories, and premium experiences. GAAP revenue is deferred over the period of expected user engagement, making bookings the leading indicator ($4.37B in FY2024). Three additional revenue vectors: (1) Premium subscriptions ($5/month for Robux allowance + benefits); (2) Advertising — target $1B+ by 2026 via Google AdMob integration and brand partnerships; (3) IP Licensing — creators build experiences using Netflix, Lionsgate, Sega, Kodansha IP through the Roblox License Manager.

Products & Services

• Roblox Platform — 3D creation and experience engine; runs on iOS, Android, PC, Xbox, Meta Quest VR
• Roblox Studio — free game/experience creation tool; millions of developer accounts; enables the UGC flywheel
• Roblox Avatar & Marketplace — virtual goods economy; top creators earn millions in Robux
• Roblox Advertising — in-experience immersive ads (video, portals, billboards); Google AdMob partnership for video ad formats
• License Manager — IP franchise integration system (Netflix, Lionsgate, Sega, Kodansha as launch partners)
• Creator Economy — developers earned $1B+ in the year ending March 2025 (+31% YoY); exchange rates raised 8.5% in FY2025

Customer Base & Go-to-Market

380M+ MAUs (mostly ages 9–24 globally); 151.5M DAUs (Q3 2025). User-generated content creates a near-zero content cost platform — 10M+ experiences built by the creator community. International users are a large audience but monetize at lower rates than North American users — international ARPU expansion is a multi-year opportunity. Users 13+ (older, higher ARPU, advertiser-friendly) have tripled from 40M to 101M. Creator royalties (~30% of revenue) are the platform's largest cost.

Competitive Position

Roblox competes with Minecraft, Fortnite (Epic Games), TikTok, and YouTube Kids for user time — and with Unity/Unreal for developer mindshare. Differentiation: the UGC creation + social gaming flywheel is 15+ years deep with network effects that no competitor has replicated at this scale among young users. The platform's TAM is expanding beyond gaming into education, entertainment, brand experiences, and virtual events — concerts, film launches, interactive advertising. No competitor has the same combination of creation tools + social graph + virtual economy targeting the 13–24 demographic.

Key Facts

• Founded: 2004
• Headquarters: San Mateo, California
• Employees: ~4,500
• Exchange: NYSE
• Sector / Industry: Communication Services / Interactive Media & Entertainment
• Market Cap: ~$35–45B (at ~$50–65/share)

ticker: RBLX step: 04 generated: 2026-05-13 source: quick-research

Roblox Corporation (RBLX) — Financial Snapshot

Note: GAAP revenue is deferred; bookings (recognized immediately at purchase) are the primary operating KPI.

Income Statement Summary

FY2025: Revenue $4.891B (+36% YoY). Q3 2025: DAUs 151.5M; users 13+ exceeded 101M (+153% vs Q3 2023). Q1 2026: Stock dropped 20%+ as company cut full-year bookings guidance — new age-verification policies created user friction. Creator payouts raised 8.5% (+$95M/year) in FY2025, weighing on margins. Advertising heading toward $1B target by 2026.

Cash Flow & Balance Sheet (FY2024)

The FY2024 FCF inflection (+367% to $641M) is the most significant financial milestone since IPO — Roblox is transitioning from cash-burning growth to self-funding platform. GAAP losses persist from SBC (~30% of revenue) and infrastructure costs. Analyst projections: FCF grows from $640M (2024) to $3.28B (2029) as monetization (advertising, international) scales.

Key Ratios (approximate)

• P/E: N/A (GAAP losses) | EV/Sales: ~7–9x | FCF Yield: ~1.5–2%
• Bookings Growth (TTM): ~24% | Non-GAAP FCF Margin: ~18%

Growth Profile

Roblox's revenue grew from $2.23B (FY2022) to $4.89B (FY2025) — 119% in 3 years — but growth is lumpy due to Robux deferral accounting. The key growth levers: (1) DAU expansion (151M+, growing rapidly); (2) ARPDAU improvement via advertising monetization ($210M in sponsored events Q1 2025 alone); (3) older-user growth (13+ tripled); (4) international ARPU catch-up to North American rates. Q1 2026 guidance cut from age-verification friction is the near-term headwind; analysts expect $12.7B revenue by 2029 if advertising scales.

Forward Estimates

• FY2026: Revenue ~$5.5–6B+ (guidance cut after Q1 2026 concerns); bookings ~$5B
• Advertising revenue: targeting $1B by 2026 — Google AdMob integration is key enabler
• FCF: tracking toward $1B+ in FY2026; $3.28B by FY2029 (analyst projection)
• Analyst consensus PT: ~$116 (25 Buy ratings); implied significant upside from current levels
• Long-term: Revenue forecast to reach $12.7B by 2029 as international monetization and advertising scale