10-Q · April 30, 2026
Roblox Corporation reported Q1 2026 revenue of $1.44 billion, surpassing last year by 39%, though it fell short of estimates by 7.8%. EPS of -$0.35 exceeded expectations of -$0.41, driven by improved cash flow and a…
Earnings analysis · 10-Q
RBLX earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Roblox produced strong sequential revenue growth to $1.697 billion, but diluted EPS worsened to $(0.32) from $(0.26) in Q2 2026, and the supplied filing does not provide current-quarter gross margin, operating margin,…
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Roblox produced strong sequential revenue growth to $1.697 billion, but diluted EPS worsened to $(0.32) from $(0.26) in Q2 2026, and the supplied filing does not provide current-quarter gross margin, operating margin, operating cash flow, or free-cash-flow figures. The filing highlights increasing regulatory obligations, mobile-platform dependence, international exposure, fraud risk, and the adverse growth impact from mandatory age checks. Persistent losses, including a $5.717 billion accumulated deficit, and continued investment requirements support a bearish trend assessment despite revenue growth and ongoing share repurchases.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.32
What stood out
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Revenue accelerated sequentially
Q3 revenue was $1.697 billion, up from $1.47 billion in Q2 2026, an increase of approximately 15.4%.
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EPS loss widened sequentially
Diluted EPS was $(0.32), compared with $(0.26) in Q2 2026, reflecting a $0.06 sequential deterioration in per-share loss.
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Financial controls remained effective
Management reported that disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2026, with no material changes in internal control over financial reporting during the quarter.
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Investment portfolio remains liquid
The company’s investment portfolio is primarily composed of debt securities, and a hypothetical 100-basis-point increase in interest rates would have reduced their fair value by approximately $62 million as of September 30, 2026.
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Share repurchases continued
Roblox repurchased 4.36 million Class A shares in September 2026 at an average price of $45.87 per share, leaving $2.42 billion available under the repurchase program.
What to watch
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High mobile distribution concentration
For the three months ended September 30, 2026, 24% of revenue came through the Apple App Store and 15% through Google Play. Platform providers can charge up to 30% of user payments and may change their fee structures or access terms.
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Regulatory compliance burden increased
Roblox was designated a Category 1 and 2B Service under the U.K. Online Safety Act on July 10, 2026; noncompliance can result in fines of up to £18 million or 10% of prior-year global revenue. The company was also designated an EU Very Large Online Platform on August 31, 2026, with additional obligations beginning January 1, 2027.
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Fraud and chargeback exposure
Total chargebacks and refunds were approximately 2.1% of bookings for the three months ended September 30, 2026, some of which may have been related to fraud. A higher rate could lead to card-network fines, additional authentication requirements, or loss of payment methods.
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Persistent losses and deficit
Roblox had an accumulated deficit of $5.717 billion as of September 30, 2026 and incurred net losses attributable to common stockholders of $1.065 billion for 2025. Management expects costs and investments to continue increasing, leaving profitability uncertain.
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International monetization risk
Approximately 83% of DAUs and 43% of revenue came from outside the U.S. and Canada in Q3 2026. International expansion exposes Roblox to weaker discretionary spending, currency movements, local regulation, and possible platform restrictions.
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Safety changes pressure growth
The filing states that mandatory age-check systems implemented in January 2026 across all chat-enabled regions led to an unexpected decline in the rate of growth. Further safety, age-check, and account-type changes could negatively affect bookings, revenue, or engagement.
Management's outlook
The supplied 10-Q excerpt does not include quantitative revenue, bookings, EPS, or free-cash-flow guidance. Prior outlook information was disclosed in the October 29, 2026 earnings release/8-K rather than the supplied 10-Q text.
Earlier filings 4
10-K · February 11, 2026
Roblox reports continued top-line and engagement expansion in 2025 with 127 million average DAUs and 123.9 billion hours engaged (2.7 hours per DAU/day). Aggregate 2025 revenues (sum of quarterly results) were about…
10-K · February 18, 2025
Roblox emphasizes growth driven by two network effects — user-generated content and social connections — and reports large scale engagement (82.9 million average DAUs and 73.5 billion hours engaged in 2024). The company…
10-Q · October 31, 2024
Roblox reported Q3 revenue of $918,953 (thousands), up 28.8% year-over-year from $713,225, with gross margin roughly stable at ~77.7% and operating loss narrowing versus the prior year. EPS improved to $(0.37) from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.