Roblox Revenue Rises 16% to $1.57 Billion in Q3 2026 as AI Adoption Surges Among Creators

Roblox reported its first annual decline in daily active users, down 9% to 138 million. Hours played and spending also fell, while revenue rose 16% to $1.57 billion. The company attributes the drop to safety measures and a shift towards older players. Investors reacted negatively, with the share price dropping 16%.

Roblox (RBLX) stock dropped 18.1% after reporting 9% fewer daily users in Q3, with revenue of $1.57B missing estimates. Management forecasts a 10-15% decline in holiday bookings. The drop was larger than peers' declines, with the stock now down 67.9% from its 2025 close.

DA Davidson cut its price target on Roblox (RBLX) to $48 from $50, citing Q3 2026 results that beat expectations but included weaker guidance. RBLX shares are down 21% in a week and 62% over a year. Other analysts have mixed reactions, with some raising and others lowering targets. The stock trades at $43.22, below the new target.

Roblox reported $1.572B in Q3 2026 revenue, up 16% YoY, despite a 15% drop in user hours and 9% fewer daily active users. Bookings fell 12% to $1.697B. Paying users decreased 16%, but spending per user rose 5%. The company remains unprofitable, with a $230M quarterly loss. Roblox attributes revenue growth to deferred revenue recognition and subscriber behavior.

Roblox outlined plans to expand its platform with initiatives like Roblox Everywhere and Universal Player, aiming to capture 10% of the global gaming market. The company reported 138 million daily active users and $1.6 billion in quarterly revenue, up 16% year over year. Bookings fell 12% to $1.7 billion, with a net loss of $230 million.

Roblox (RBLX) reported Q3 bookings of $1.70B, beating estimates but down 12% YoY. Q4 guidance expects bookings down 10-15% YoY, a small EBITDA loss, and a 9% decline in daily active users. Paying users fell 16%, raising monetization concerns. The stock dropped 18% post-earnings, despite Q3 beating expectations.