Roblox (RBLX) Stock Explodes 22% as Platform Crushes Earnings

TLDR

• Roblox stock jumped 22% to $74 after Q4 bookings soared 63% to $2.2 billion, crushing the $2.09 billion analyst estimate
• Daily active users grew 69% to 144 million while hours engaged surged 88% to 35.2 billion, both beating expectations
• The company posted a Q4 net loss of $318 million but free cash flow doubled estimates at $307 million
• Q1 2026 bookings guidance of $1.69-$1.74 billion tops Wall Street’s $1.68 billion forecast
• Mandatory age verification completed in January revealed 73% of users are under 18, creating short-term headwinds

Roblox shares exploded 22% to $74 in after-hours trading Thursday after the gaming platform demolished fourth-quarter expectations. The stock had closed down 4% at $60.54 during regular trading.

The company reported Q4 bookings of $2.2 billion, up 63% year-over-year. That crushed analyst estimates of $2.09 billion.

Daily active users hit 144 million, a 69% increase from last year. Wall Street expected 138 million.

Roblox Corporation, RBLX

Hours engaged on the platform jumped 88% to 35.2 billion. Analysts projected 32.4 billion hours.

Free cash flow reached $307 million for the quarter. That more than doubled the $136 million analysts anticipated.

The U.S. and Canada accounted for $1.2 billion in bookings and 24 million daily users. The region also contributed 6.3 billion hours engaged.

Roblox posted a net loss of $318 million on revenue of $1.42 billion, up 43%. Analysts expected a loss of $323 million.

Strong Full-Year Results

For full-year 2025, bookings climbed 55% to $6.8 billion, beating the $6.6 billion estimate. Revenue rose 36% to $4.9 billion with a net loss of $1.07 billion.

CEO David Baszucki called 2025 a banner year. He said the top 1,000 creators earned an average of $1.3 million.

“Roblox’s success is rooted in the boundless creativity of our creator community,” Baszucki stated. He added the company aims to connect one billion users and capture 10% of the global gaming market.

First-quarter 2026 bookings are expected between $1.69 billion and $1.74 billion. That represents growth of 40% to 44% year-over-year and beats the $1.68 billion analyst consensus.

The company projects Q1 free cash flow of $560 million to $584 million, up 31% to 37%. Analysts forecast $348 million.

Age Verification Creates Headwinds

Roblox completed a global rollout of mandatory age verification in January. The company started the process late in Q4 in Australia, New Zealand and the Netherlands.

The age check revealed 73% of daily users are under 18. Specifically, 38% are between 13 and 17, while 35% are under 13.

Management said the verification created a mid-single-digit headwind to engagement growth. It also caused a low-single-digit headwind to bookings growth.

However, the company views accurate age data as a long-term opportunity. “Accurate age data unlocks a long-term opportunity to tailor features and content, increasing safety and civility, which in turn drives organic engagement growth,” Roblox stated.

The company disclosed 60% of daily users in the initial markets completed age verification. Globally, 45% of daily users had verified their age by quarter’s end.

Full-year 2026 bookings guidance came in at $8.28 billion to $8.55 billion, topping the $8.03 billion estimate. Free cash flow is expected between $1.6 billion and $1.8 billion versus the $1.5 billion consensus.

Roblox announced it will stop providing annual guidance starting in 2027. The company will focus on quarterly forecasts instead.

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