Roblox shows strong 39% revenue growth and consistent earnings beats in three of the last four quarters, but its business quality score of 1.7 out of 10 — driven by zero net margins, a weak Piotroski F-Score of 3 out of 9, and no demonstrated competitive moat — means the growth story has not yet translated into durable fundamentals.
Thesis pillars
- Revenue Growth Without Profitability→Stable
- Earnings Beat Consistency↑Improving
- Analyst Upside Valuation Gap→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 11, 2026
Roblox Corporation (RBLX) Stock Analysis
Momentum Cont setup
Communication Services · Electronic Gaming & Multimedia
Sell if holding. Engine safety override at $53.28: Quality below floor (1.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Elevated put/call ratio: 1.80; Below-average business quality.
Roblox operates an immersive gaming and creation platform with 127 million average daily active users across 180+ countries in 2025, spanning mobile, desktop, console, and VR. Revenue flows primarily from Robux virtual currency purchases—29% through the Apple App Store and 15%... Read more
Sell if holding. Engine safety override at $53.28: Quality below floor (1.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Elevated put/call ratio: 1.80; Below-average business quality. Chart setup: Trend continuation, RSI 70, MACD bullish. Score 5.1/10, moderate confidence.
Passes 5/9 gates (positive momentum, clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: speculative.
About Roblox Corporation
About Roblox Corporation
Roblox counted 127 million average daily active users during the year ended December 31, 2025 across mobile, desktop, console, and select VR hardware in more than 180 countries, generating 123.9 billion hours of platform engagement at an average of 2.7 hours per DAU per day. The platform hosted over 14 million active experiences during the year. The company disclosed that 29% of revenue was attributable to Robux sales through the Apple App Store and 15% through the Google Play Store, making these two storefronts collectively responsible for 44% of revenue.
Roblox generates revenue when users purchase Robux, which is then spent on in-experience items, avatar accessories, and creator content. For mobile transactions through Apple and Google, the company is obligated to pay up to 30% of proceeds to each platform; similar fees apply to console providers including Microsoft Xbox and Sony PlayStation. Creators monetize through in-experience purchases, the Creator Rewards Program (launched July 2025, replacing the prior Engagement-Based Payouts program), advertisements, and IP licensing via the self-serve License Manager introduced in late 2025. During 2025, over 23,500 creators participated in the Developer Exchange Program and received fiat currency payments; beginning September 5, 2025, the company raised fiat payout rates by 8.5%. Roblox does not directly process payments, relying on Stripe, Xsolla, and Tipalti for creator disbursements.
Show full overview
Roblox faces layered regulatory exposure across multiple jurisdictions that may weigh on bookings from younger demographics: the Netherlands announced a Digital Services Act investigation into Roblox in January 2026, with potential fines up to 6% of annual global revenues; the UK Online Safety Act subjects the company to fines of up to £18 million or 10% of prior-year global revenues for non-compliance; and Brazil's Digital Statute for Children and Adolescents took effect in March 2026. Domestically, Texas, Utah, and Louisiana enacted parental-consent restrictions for minors in March 2025 that the 10-K says may adversely impact revenue and bookings in those states.
See also: Communication Services · Electronic Gaming & Multimedia
From Roblox Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-10-29Recent Developments — Roblox Corporation
Latest news
- NEWS Amazon, Eli Lilly On Deck Thursday As AWS Growth, Drug Demand Face Test — benzinga Oct 28, 2026 neutral
- NEWS Coca-Cola To Rally Around 13%? Here Are 10 Top Analyst Forecasts For Wednesday — benzinga Oct 28, 2026 neutral
- NEWS BTIG Maintains Sell on Roblox, Raises Price Target to $42 — benzinga Oct 28, 2026 positive
- NEWS Findmykids Data Highlights Roblox Usage Among US Children — fiscal.ai Oct 27, 2026 neutral
- NEWS Wedbush Securities Issues Q3 Performance Estimates for Roblox — fiscal.ai Oct 23, 2026 neutral
Generated 2026-10-29T11:14:35Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMcounterpartyApple App Store29%10-K Item 1A: '29% of our revenue was attributable to Robux sales through the Apple App Store and 15% of our revenue was attributable to Robux sales through the Google Play Store'
- LOWcounterpartyGoogle Play Store15%10-K Item 1A: '29% of our revenue was attributable to Robux sales through the Apple App Store and 15% of our revenue was attributable to Robux sales through the Google Play Store'
Material Events(8-K, last 90d)
- 2026-03-20Item 5.02LOWRoblox board expanded and elected Dennis Durkin (age 55, former Activision Blizzard CFO until May 2021) as Class II director effective March 19, 2026. Appointed to Audit and Leadership Development/Compensation Committees. No departures disclosed.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Hyper-growth tech sacrificing current profitability for scale. Floor tripped because model treats negative margins uniformly; the growth dimension tells the other half of the story.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $53.28: Quality below floor (1.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Elevated put/call ratio: 1.80; Below-average business quality. Chart setup: Trend continuation, RSI 70, MACD bullish. Prior stop was $49.55. Score 5.1/10, moderate confidence.
Analyst target $46.11 reached (−13.5% from $53.28); no take-profit level is published. Prior stop was $49.55. Stop-loss: $49.55.
Target reached (-13.5% upside); Quality below floor (1.7 < 4.0).
Roblox Corporation trades at a P/E of N/A (forward -42.6). TrendMatrix value score: 4.1/10. Verdict: Sell.
44 analysts cover RBLX with a consensus score of 3.5/5. Average price target: $50.
What does Roblox Corporation do?Roblox operates an immersive gaming and creation platform with 127 million average daily active users across 180+...
Roblox operates an immersive gaming and creation platform with 127 million average daily active users across 180+ countries in 2025, spanning mobile, desktop, console, and VR. Revenue flows primarily from Robux virtual currency purchases—29% through the Apple App Store and 15% through the Google Play Store—with creators earning a share via the Developer Exchange Program.