Roblox Corporation (RBLX) Earnings & Analysis

Latest quarter

Roblox’s Q2 FY2026 revenue missed the consensus, while its adjusted loss per share of −$0.26 was narrower than the consensus estimate of −$0.33. The company reported revenue of $1.5 billion, up 35.9% from $1.1 billion a year earlier. Its diluted loss per share narrowed to −$0.26 from −$0.41.

Roblox’s filing attributed the revenue increase primarily to higher amortization of previously deferred revenue and more revenue recognized from current-period bookings. The filing said bookings grew primarily because the average number of daily unique paying users increased to approximately 1.6 million from approximately 1.5 million a year earlier.

Gross margin rose to 80.1% from 78.2%, while operating margin improved to −15.6% from −29.8%. Roblox reported free cash flow of $294.0 million, compared with $176.0 million a year earlier. The filing said infrastructure and trust and safety expenses rose as data center, infrastructure and hosting costs increased.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

In its filing, Roblox said it plans to increase research and development expenses for the foreseeable future, primarily by adding employees to develop platform features and functionality. The company also said it expects to continue investing in AI and automation for safety moderation and customer support.

Guidance

Roblox expects daily active users to increase sequentially in Q3 FY2026, helped by seasonality and recent changes to its discovery algorithm. The company expects the monetization softness observed in Q2 to persist in Q3.