Roblox Corporation (RBLX) Q4 2025 Financial Results Summary
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Roblox Corporation (RBLX) Q4 2025 Financial Results Summary
Roblox Corporation released its Fourth Quarter 2025 financial results on February 5, 2026, providing insightful data on its performance and growth strategies.
Key Highlights
- Financial Performance
- Revenue: Increased by 43% year-over-year to $1.4 billion in Q4 2025.
- Bookings: Grew by 63% year-over-year to $2.2 billion.
- Operating Cash Flow: Reached $607 million, a 229% increase compared to $184 million in Q4 2024.
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Free Cash Flow: Amounted to $307 million, up 155% from $121 million a year ago.
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User Growth & Engagement
- Daily Active Users (DAUs): Grew 69% year-over-year to 144 million.
- DAUs in international markets rose by 79%, while those in the U.S. and Canada grew by 32%.
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Hours Engaged: Increased by 88% year-over-year to 35 billion hours.
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Long-term Goals:
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Market Share: Roblox seeks to capture 10% of the global gaming content market and increase penetration in the U.S. market from 3.4%.
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Age Check Implementation:
- Introduced mandatory age-checks globally.
- As of January 31, 2026: 45% of DAUs have completed age-checks.
- Of those:
- 35% are under 13 years old (U13)
- 38% are between 13 and 17 years old
- 27% are over 18 years old (O18)
Financial Components
- Consolidated Net Loss: Q4 2025 reported a net loss of $318 million, compared to a net loss of $221 million in Q4 2024.
- Adjusted EBITDA: Just above break-even at $2.7 million, decreased from $65.6 million the previous year.
Cost Components
- Cost of Revenue: Grew by 44% year-over-year, totaling $315 million; as a percentage of revenue, it was 22.3%.
- Developer Exchange (DevEx) Fees: Increased by 70% year-over-year to $477 million.
- Infrastructure and Trust & Safety Expenses: Grew by 65% year-over-year to $329 million.
- Personnel Costs (excluding stock-based compensation): Up by 25% year-over-year, totaling $250 million.
Investments & Dividends
- Roblox did not declare a quarterly dividend but demonstrated strong engagement with users by innovating heavily in AI technology and enhancing its platform features.
Growth Strategies
- Novel Game Expansion: Focused on engaging older demographics with new game styles and genres to increase DAUs.
- Investment in AI: Plans to integrate extensive AI technologies into user experience and game development, improving engagement significantly.
- Safety & Civility: Continued commitment to creating a safe online environment through technology and community engagement.
Looking Ahead
- Fiscal Year 2026 Guidance:
- Revenue Growth Forecast: Projected between 23% to 29%.
- Bookings Growth Forecast: Expected between 22% to 26%.
In conclusion, Roblox Corporation’s Q4 2025 results indicate strong growth in both user engagement and financial metrics, despite a reported net loss. The company is actively leveraging technological advancements and strategic market focus to aim for significant expansion in the gaming content market.
Here are the extracted tables in HTML format:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands)
| Three Months Ended December 31 | 2025 | 2024 | Twelve Months Ended December 31 | 2025 | 2024 |
|---|---|---|---|---|---|
| Revenue(1) | 1,415,021 | 988,183 | Revenue(1) | 4,890,551 | 3,601,979 |
| Cost and expenses: | Cost and expenses: | ||||
| Cost of revenue(1)(2) | 315,005 | 218,741 | Cost of revenue(1)(2) | 1,072,299 | 801,162 |
| Developer exchange fees | 477,240 | 280,610 | Developer exchange fees | 1,503,106 | 922,821 |
| Infrastructure and trust & safety | 329,278 | 222,822 | Infrastructure and trust & safety | 1,153,454 | 915,418 |
| Research and development | 409,845 | 355,034 | Research and development | 1,567,747 | 1,444,207 |
| General and administrative | 163,826 | 105,323 | General and administrative | 580,114 | 407,507 |
| Sales and marketing | 78,465 | 49,765 | Sales and marketing | 246,173 | 174,181 |
| Total cost and expenses | 1,773,659 | 1,232,295 | Total cost and expenses | 6,122,893 | 4,665,296 |
| Loss from operations | (358,638) | (244,112) | Loss from operations | (1,232,342) | (1,063,317) |
| Interest income | 54,354 | 46,260 | Interest income | 201,610 | 179,531 |
| Interest expense | (10,413) | (10,331) | Interest expense | (41,457) | (41,184) |
| Other income/(expense), net | (2,456) | (10,221) | Other income/(expense), net | 4,164 | (11,530) |
| Loss before income taxes | (317,153) | (218,404) | Loss before income taxes | (1,068,025) | (936,500) |
| Provision for/(benefit from) income taxes | 954 | 2,648 | Provision for/(benefit from) income taxes | 3,593 | 4,114 |
| Consolidated net loss | (318,107) | (221,052) | Consolidated net loss | (1,071,618) | (940,614) |
| Net loss attributable to noncontrolling interest | (2,107) | (1,479) | Net loss attributable to noncontrolling interest | (6,561) | (5,230) |
| Net loss attributable to common stockholders | (316,000) | (219,573) | Net loss attributable to common stockholders | (1,065,057) | (935,384) |
| Net loss per share attributable to common stockholders, basic and diluted | (0.45) | (0.33) | Net loss per share attributable to common stockholders, basic and diluted | (1.54) | (1.44) |
| Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted | 704,767 | 660,900 | Weighted-average shares used in computing net loss per share attributable to common stockholders – basic and diluted | 689,612 | 647,482 |
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
| As of | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | 1,205,319 | 711,683 |
| Short-term investments | 1,849,823 | 1,697,862 |
| Accounts receivable—net of allowances | 900,646 | 614,838 |
| Prepaid expenses and other current assets | 109,294 | 75,415 |
| Deferred cost of revenue, current portion | 832,941 | 628,232 |
| Total current assets | 4,898,023 | 3,728,030 |
| Long-term investments | 2,492,593 | 1,610,215 |
| Property and equipment—net | 884,776 | 659,589 |
| Operating lease right-of-use assets | 651,055 | 665,885 |
| Deferred cost of revenue, long-term | 448,169 | 321,824 |
| Intangible assets, net | 18,234 | 34,153 |
| Goodwill | 142,624 | 141,688 |
| Other assets | 21,644 | 13,619 |
| Total assets | 9,557,118 | 7,175,003 |
| Liabilities and Stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | 64,948 | 42,885 |
| Accrued expenses and other current liabilities | 396,451 | 275,754 |
| Developer exchange liability | 496,020 | 339,600 |
| Deferred revenue—current portion | 4,168,971 | 3,004,969 |
| Total current liabilities | 5,126,390 | 3,663,208 |
| Deferred revenue—net of current portion | 2,336,959 | 1,567,007 |
| Operating lease liabilities | 643,356 | 670,051 |
| Long-term debt, net | 993,098 | 1,006,371 |
| Other long-term liabilities | 82,335 | 59,712 |
| Total liabilities | 9,182,138 | 6,966,349 |
| Stockholders’ equity: | ||
| Common stock | 64 | 62 |
| Additional paid-in capital | 5,438,559 | 4,220,916 |
| Accumulated other comprehensive income/(loss) | 16,555 | (3,895) |
| Accumulated deficit | (5,060,694) | (3,995,637) |
| Total Roblox Corporation stockholders’ equity | 394,484 | 221,446 |
| Noncontrolling interest | (19,504) | (12,792) |
| Total stockholders’ equity | 374,980 | 208,654 |
| Total liabilities and stockholders’ equity | 9,557,118 | 7,175,003 |