Less playtime, more revenue: Roblox’s $1.6 billion paradox

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 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.

Roblox reported Q3 2026 revenue of $1.57B, up 16% YoY, despite declines in users and engagement. Bookings fell 12% to $1.70B, while net loss narrowed to $230M. AI adoption surged among creators, with 80% of top games using AI tools. Roblox expects Q4 revenue between $1.47B and $1.58B.