Roblox (RBLX) investor relations material

Executive summary

• Revenue grew 36% year-over-year to $1.5B, with bookings up 8% to $1.6B and DAUs reaching 123M, driven by strong international growth, especially in Japan and India.

• Net loss narrowed to $183M–$185M from $278M–$280M year-over-year, while adjusted EBITDA rose to $152M from $18M, reflecting improved operational efficiency.

• Strategic focus on long-term retention over short-term monetization, with discovery algorithms prioritizing engagement quality.

• Major investments in AI, content diversification, and safety infrastructure to support future growth.

• The company repurchased 8.2 million shares for $380M in Q2 2026; $2.6B remains under the buyback program.

Financial highlights

• Revenue: $1.5B (+36% YoY); bookings: $1.6B (+8% YoY); DAUs: 123M.

• Net loss: $183M–$185M (down from $278M–$280M YoY); adjusted EBITDA: $152M (up from $18M YoY).

• Free cash flow: $294M (+66% YoY); net cash from operations: $318M (+60% YoY).

• Monetization per hour and ABPDAU declined, especially among under-13 users, due to a shift from viral to evergreen content.

• Average monthly unique payers: 27M (+15% YoY); average bookings per monthly unique payer: $19.25.

Outlook and guidance

• Q3 bookings forecasted at $1.58B–$1.65B, representing a 14–18% year-over-year decline due to continued monetization weakness.

• Q3 2026 revenue guidance: $1.41B–$1.49B (4–10% YoY growth); net loss expected between $307M–$348M; adjusted EBITDA: $41M–$46M.

• Free cash flow for Q3 2026 projected between $(60)M and $5M.

• No revised full-year guidance provided due to high variability and ongoing platform changes.

• Long-term growth conviction remains, targeting over 20% annual growth and 10%+ share of the global gaming market.