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Roblox Corporation (NYSE: RBLX) lifts Q2 revenue but warns on Q3 bookings

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(High)
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Form Type
8-K

Rhea-AI Filing Summary

Roblox Corporation reported Q2 2026 results showing rapid growth but continued losses. Revenue grew 36% year-over-year to $1,469 million, while bookings rose 8% to $1,557 million. Consolidated net loss narrowed to $185 million from $280 million, and Adjusted EBITDA increased to $152 million from $18 million.

Cash generation strengthened, with operating cash flow of $318 million and free cash flow of $294 million, both up more than 60% year-over-year, and total cash, cash equivalents and investments reaching $6.1 billion. The platform averaged 123 million daily active users and 29 billion hours, and monthly unique payers grew 15% to 27 million.

Management cited monetization headwinds from a shift toward lower-monetizing content and changes to the Recommended For You algorithm, and expects this softness to persist. For Q3 2026, Roblox guides revenue of $1,413–$1,490 million (4–10% growth) but bookings of $1,576–$1,653 million, a 14–18% decline year-over-year, with free cash flow guided between –$60 million and $5 million.

Positive

  • Revenue up 36% to $1,469M in Q2 2026, with consolidated net loss narrowing to $185M and Adjusted EBITDA improving sharply to $152M from $18M a year earlier.
  • Operating cash flow reached $318M and free cash flow $294M, both up more than 60% year-over-year, while cash, cash equivalents and investments totaled $6.1B.
  • Engagement and monetization base expanded: DAUs rose 10% to 123M, Hours grew 5% to 29B, and average monthly unique payers increased 15% to 27M.
  • $3B share repurchase authorization with 8.2M shares repurchased for approximately $380M in Q2 2026 to partially offset dilution from employee equity grants.

Negative

  • Bookings growth slowed to 8%, at the low end of guidance, reflecting lower per-hour monetization, particularly among younger cohorts in the U.S. and Canada.
  • Q3 2026 guidance calls for bookings to decline 14–18% year-over-year, with expected fixed-cost deleveraging and free cash flow guided between –$60M and $5M.
  • Infrastructure and trust & safety expenses increased 54% to $236M, contributing to continued GAAP net losses despite strong topline growth and cash generation.

Filing Explained

Roblox used $380 million of its active repurchase program, but its June 30 fully diluted share count was still up 2% year over year.

The company reports that its common-stock repurchase program is active: it repurchased 8.2 million shares for approximately $380 million in Q2 2026. The board authorization permits up to $3 billion, but the company says it intends to repurchase $1 billion during the 12 months after May 19, 2026, so the authorization is a ceiling rather than a commitment to spend the full amount.

Roblox says the program is designed to partially offset dilution from employee equity grants while preserving flexibility for growth investment. Under the supplied dilution definition, issuing additional shares increases total share count and reduces an existing holder’s percentage ownership absent offsetting changes; the filing reports a fully diluted share count of 752 million at June 30, 2026, up 2% year over year.

A later company filing would be needed to show how the repurchase authorization progresses and whether the fully diluted share count changes from the June 30, 2026 position.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Revenue Q2 2026 $1,469 million Three months ended June 30, 2026; 36% year-over-year growth from $1,081 million
Bookings Q2 2026 $1,557 million Non-GAAP bookings in Q2 2026; up from $1,438 million, 8% year-over-year growth
Consolidated net loss Q2 2026 $185 million Quarter ended June 30, 2026; improved from $280 million in Q2 2025
Adjusted EBITDA Q2 2026 $152 million Q2 2026 Adjusted EBITDA, compared with $18 million in Q2 2025
Free cash flow Q2 2026 $294 million Q2 2026 free cash flow; up from $177 million in Q2 2025
Daily active users Q2 2026 123 million DAUs in Q2 2026; 10% year-over-year growth with 29 billion hours engaged
Q3 2026 bookings guidance $1,576–$1,653 million Guided 18% to 14% year-over-year decline in bookings for the quarter ending September 30, 2026
Bookings financial
"Bookings represent the sales activity in a given period without giving effect to certain non-cash adjustments"
"Bookings" refer to the total value of new sales or agreements a company secures during a specific period. It shows how much business the company has signed up for, even if the products or services haven't been delivered yet. This figure helps investors understand the company's future growth potential.
Adjusted EBITDA financial
"Adjusted EBITDA represents our GAAP consolidated net loss, excluding interest, taxes, depreciation, stock-based compensation and other items"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow represents the net cash and cash equivalents provided by operating activities, less purchases of property and equipment"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Developer Exchange (DevEx) fees financial
"Developer Exchange (DevEx) fees grew 15% year-over-year, totaling $363 million"
age-check penetration regulatory
"By the end of Q2, 57% of global DAUs have age-checked, led by strong execution in developed countries"
Revenue $1,469 million Revenue grew 36% year-over-year from $1,081 million in Q2 2025.
Bookings $1,557 million Bookings increased from $1,438 million, representing 8% year-over-year growth.
Consolidated net loss $185 million Consolidated net loss improved from $280 million in Q2 2025.
Adjusted EBITDA $152 million Adjusted EBITDA rose from $18 million in Q2 2025.
Free cash flow $294 million Free cash flow increased from $177 million in Q2 2025.
Daily active users 123 million DAUs; 29 billion hours DAUs grew 10% year-over-year and hours engaged grew 5% to 29 billion.
Guidance

For Q3 2026, the company expects revenue of $1,413–$1,490 million (4–10% year-over-year growth) and bookings of $1,576–$1,653 million (18–14% year-over-year decline), consolidated net loss of $348–$307 million, Adjusted EBITDA of $0–$41 million, operating cash flow of $110–$175 million, and free cash flow of –$60–$5 million.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Roblox (RBLX) perform financially in Q2 2026?
Roblox delivered strong growth in Q2 2026, with revenue up 36% to $1,469 million. Bookings rose 8% to $1,557 million, consolidated net loss narrowed to $185 million, and Adjusted EBITDA improved to $152 million from $18 million a year earlier.

What user and engagement metrics did Roblox (RBLX) report for Q2 2026?
Roblox reported 123 million daily active users, up 10% year-over-year, and 29 billion hours engaged, up 5%. Average monthly unique payers reached 27 million, a 15% year-over-year increase, with continued strong international growth in markets like Japan and India.

What guidance did Roblox (RBLX) provide for Q3 2026 revenue and bookings?
For Q3 2026, Roblox expects revenue of $1,413–$1,490 million, representing 4–10% year-over-year growth. It guides bookings of $1,576–$1,653 million, a 14–18% year-over-year decline, reflecting ongoing monetization softness and discovery-algorithm changes.

What are Roblox’s (RBLX) cash flow expectations for Q3 2026?
Roblox projects Q3 2026 operating cash flow between $110 million and $175 million. After approximately $170 million of capital expenditures and intangible purchases, it expects free cash flow in a range of –$60 million to $5 million, including a $40 million working-capital headwind.

How strong is Roblox’s (RBLX) balance sheet and liquidity as of June 30, 2026?
As of June 30, 2026 Roblox held $6.1 billion in cash, cash equivalents, and investments. Total assets were $9,745 million against total liabilities of $9,616 million, including $1,009 million of long-term debt, providing substantial liquidity to fund operations and investments.

Did Roblox (RBLX) repurchase shares in Q2 2026 and what is the program size?
Yes. The board authorized a $3 billion share repurchase program, with an intent to repurchase $1 billion over 12 months from May 19, 2026. In Q2 2026, Roblox repurchased 8.2 million shares for about $380 million.
FALSE000131509800013150982026-07-302026-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________
FORM 8-K
____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2026
____________________________
Roblox Corporation
(Exact name of Registrant as Specified in Its Charter)
____________________________
Nevada001-3976320-0991664
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
3150 South Delaware Street,
San Mateo, California
94403
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (888) 858-2569
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Class A Common Stock, $0.0001 par valueRBLXThe New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02    Results of Operations and Financial Condition.
On July 30, 2026, Roblox Corporation (the “Company”) issued a shareholder letter announcing financial results for its second quarter ended June 30, 2026 as well as third quarter 2026 guidance. The Company also posted supplemental materials on its investor relations website (ir.roblox.com). A copy of the shareholder letter is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. Information on the Company’s website is not, and will not be deemed, a part of this report or incorporated into this or any other filings that the Company makes with the Securities and Exchange Commission.
Item 7.01    Regulation FD Disclosure.
A copy of the Company’s shareholder letter issued on July 30, 2026 is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01    Financial Statements and Exhibits.
(d)Exhibits
Exhibit
Number
Description
99.1
Shareholder Letter dated July 30, 2026
104Cover Page Interactive Data File (formatted as inline XBRL)
1


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ROBLOX CORPORATION
Date: July 30, 2026
By:/s/ Naveen Chopra
Naveen Chopra
Chief Financial Officer
(Principal Financial Officer)
2

Exhibit 99.1

 

​2Q26 Highlights​ ​Second Quarter 2026 Financial and Operational Highlights​

 

​To Our Shareholders:​ ​For the past two years, we have consistently focused on our goal to capture 10% of the global​ ​gaming market and an even greater share of the U.S. market. A goal of this magnitude requires a​ ​deliberate balance between managing near-term business performance and investing in the​ ​long-term growth opportunities central to our future: expanding our global audience, broadening​ ​our content offering, and deepening engagement for users and creators.​ ​Our Q2 performance reflects this balance. Our financial results saw continued topline growth and​ ​robust cash flow generation despite challenging prior year comparisons. Revenue grew 36%​ ​year-over-year to $1.5 billion.​​1​ ​We generated $318 million in operating cash flow, up 60%​ ​year-over-year, and $294 million in free cash flow, up 66% year-over-year. Q2 daily active users​ ​(DAUs) and hours engaged (Hours) were largely in line with our expectations. That said,​ ​year-over-year bookings growth of 8%, landed at the low end of our guidance range.​​1​ ​The bookings shortfall reflects a decline in per hour monetization most notably with younger​ ​cohorts in the U.S. and Canada. We believe the decline reflects a greater than expected shift of​ ​engagement from high monetizing, 2025-vintage viral games, to both new and evergreen games​ ​with lower hourly monetization. This underlying mix shift was compounded by changes in our​ ​Recommended for You (RFY) algorithm, which intentionally provides more impressions for highly​ ​retentive games at the expense of near term monetization, and in Q2 the near-term impact on​ ​younger cohorts has been larger than we anticipated. Our internal testing tells us that, over time,​ ​longer retention should overcome a reduction in hourly monetization. Monetization was also​ ​negatively impacted by disabling the sale of cross-experience game passes, albeit to a lesser​ ​degree.​ ​Despite near-term monetization headwinds, our platform is more diversified than ever and we​ ​continue to observe a consistent velocity of new top titles. We reached over 120 million DAUs in​ ​the quarter who spent over 29 billion Hours on our platform. We saw new user sign-up activity​ ​1​ ​On a constant currency basis, revenue was up 36%​​year-over-year and bookings was up 7%​ ​year-over-year. Constant currency is calculated by converting our current period bookings and associated​ ​revenue generated from current period bookings into U.S. dollars using the comparative prior period’s​ ​monthly exchange rates for our non-USD currencies, rather than the actual average exchange rates in effect​ ​during the current period. By adjusting revenue and bookings for constant currency, we are able to provide a​ ​framework for assessing how our business performed excluding the effect of foreign currency rate​ ​fluctuations.​ ​2​

 

​improve throughout the quarter, benefitting from normal seasonality and the reinstatement of​ ​Roblox in Russia. Retention of existing users remained stable relative to historical periods.​ ​We also made progress on several important initiatives including increasing age-check penetration​ ​(now at 57%), the successful rollout of Roblox Kids and Select accounts, and improvements in​ ​on-platform communications. On the creator front, we have now launched the planned increase in​ ​the Developer Exchange (DevEx) rate rewarding in-game spend from over 18 (O18) users in the​ ​U.S.​ ​With nearly 4% of global gaming revenue running through Roblox and a vertically integrated​ ​platform that unifies discovery, a deeply capable game engine, world-class safety, and a robust​ ​economy, Roblox is uniquely positioned to capture 10% of the global gaming market. This starts​ ​with a re-imagined Roblox homepage that brings video discovery and creation to our users with​ ​five tabs: Home. Moments. Build. Chat. Me. We’ve recently announced several other platform​ ​updates in support of this vision:​ ​●​ ​Expanding Content by Removing Limits:​​We are unlocking​​a large and growing segment of​ ​the gaming market by targeting 2D, in addition to high fidelity games.​ ​●​ ​Fueling Discovery with Moments:​​We are optimizing​​our discovery algorithm and bringing​ ​curated digital entertainment directly onto the Roblox home screen.​ ​●​ ​Connecting All Users with Safety and Civility:​​Our​​world-class safety infrastructure will​ ​support integrated voice, video, and text communications on Roblox.​ ​●​ ​Using AI to Turn Everyone into a Builder:​​Build will​​bring prompt-based game creation to​ ​over 120 million DAUs directly in the Roblox mobile app, enabling game creation with no​ ​coding experience.​ ​In today’s letter, we will provide additional details on Q2 results, changes to our financial outlook,​ ​and the growth initiatives that will power the future of the Roblox platform.​ ​3​

 

​Expanding Content by Removing Limits​ ​Today, the global gaming market is approximately $200 billion annually, with the O18 segment​ ​accounting for roughly 80% of total spend. Expanding our presence with older audiences is central​ ​to our goal of capturing 10% of the market, and we continue to make progress. In Q2, O18 users​ ​represented 27% of DAUs who have age checked, while in the U.S. O18 users represented​ ​approximately one-third of age-checked DAUs.​​2​ ​DAUs and Hours for the U.S. O18 cohorts are​ ​growing 32% and 27% year-over-year, respectively, led by 42% growth in DAUs and 37% growth​ ​in Hours for the 18–34 cohort.​​3​ ​Importantly, U.S. O18 users monetize over 50% higher than U18​ ​users.​​3​ ​To better serve this user base and continue to drive its growth, we are expanding the​ ​technological capabilities of the platform to support the full spectrum of gaming: from high-fidelity,​ ​multi-player 3D to single-player 2D gaming and everything in between.​ ​Bringing 2D Gaming to Roblox.​​2D mobile gaming represents​​a large and growing share of the​ ​global gaming market—particularly among players over 25. In fact, 2D gaming accounts for​ ​approximately one-third of the U.S. gaming market. While we continue to push the frontier of​ ​high-fidelity, 3D gaming, we are simultaneously upgrading our platform and engine to support 2D,​ ​single-player, offline, and turn-based games on any device. Combined with our ability to reach and​ ​engage audiences, supported by new innovations like Build, this expansion into 2D gaming​ ​positions us to capture a greater share of the O18 cohort.​ ​AI-Powered Photorealistic Gaming with Roblox Reality.​​We are continuing to push the​ ​technological frontier toward photorealistic multiplayer gaming with Roblox Reality. To accelerate​ ​this work, we acquired​​Morpheus AI​​, the company that​​pioneered Self Forcing and pixel-latent​ ​world models that turn slow, offline video models into fast, interactive, real-time generation​ ​engines. These technological advancements strengthen our ability to bring Roblox Reality to life.​ ​This foundational, multi-year bet expands what is possible on Roblox and widens our competitive​ ​moat.​ ​Accelerating Novel Game Creation.​​In June, we rolled​​out a targeted DevEx rate increase to​ ​incentivize novel game creation and we finalized our​​first incubator cohort​​, including 26 teams​ ​focused on building novel content. Over the next six months, Roblox will work with these teams​ ​providing hands-on mentorship and both on-platform and off-platform user acquisition support.​ ​3​ ​See “Special Note Regarding Age-Check” for additional details.​ ​2​ ​As of the seven days ended June 30, 2026, on a global basis, 35% of users who have age-checked are​ ​under 13, 38% are between the ages of 13 and 17, and 27% are O18.​ ​4​

 

​This quarter we also signed new partnerships with renowned game developers to bring popular​ ​game franchises on desktop, console, and mobile to Roblox. We believe titles from these studios​ ​will set new standards for visual fidelity and gameplay depth on Roblox, and will engage both our​ ​existing users and attract new audiences. Game launches from these partners will come later this​ ​year and on a rolling basis throughout 2027 and beyond.​ ​Fueling Discovery with Moments​ ​Discovery is an important lever supporting growth on our platform. With millions of games and over​ ​120 million DAUs, the way we connect players to the right content shapes the health of our entire​ ​ecosystem. We fundamentally believe that optimizing for long-term retention increases the lifetime​ ​value of our users: players who stay longer return more often, bring their friends, and engage more​ ​deeply—fueling the Roblox flywheel.​ ​Reimagining Moments.​​We are reimagining and relocating​​Moments​​. What began as a feed for​ ​gameplay clips is evolving into a native, homepage tab in the Roblox app featuring an expanding​ ​diversity of short form video content designed to enable users to discover new games and see​ ​updates to their favorite games. By embedding this content directly on the homepage via carousels​ ​and contextual video, we are creating a frictionless bridge from passive viewing to active play in a​ ​single tap.​ ​Roblox content surpassed one trillion all-time views on YouTube as of the end of 2025,​ ​demonstrating enormous demand that has historically lived off-platform. When Roblox content is​ ​viewed on our platform, we can directly link the discovery process to gameplay. Over time, this will​ ​better position Moments as both a high-conversion discovery tool and a premium advertising​ ​surface for brand partners and content creators. Moments will initially be available for​ ​age-checked users over 16 in select markets, with plans to safely expand to the under 16 audience​ ​over time.​ ​Moments is also increasingly powerful alongside Build. As AI helps expand the volume of​ ​user-generated games on our platform, discovery becomes more important than ever. Watching a​ ​game in action and then playing it with one tap creates a unique path to discovery for a wave of​ ​new content from Build. Together, Moments and Build fuel our growth flywheel where more​ ​content and richer discovery drive deeper engagement and retention.​ ​Updated RFY Algorithm.​​In April, we began deploying updates to our discovery engine,​ ​specifically our “Recommended For You” algorithm, to optimize for long-term player retention. The​ ​system now evaluates player behavior over a 28-day window – up from 7 days – incorporating new​ ​5​

 

​signals like play through rate and first play bounce rate,​​4​ ​together with spend days and Robux​ ​spent per user. Early results confirm a positive lift to long-term retention and engagement. We are​ ​continuing to optimize our discovery algorithm using regionalized age-check data to further refine​ ​recommendations and better surface relevant content to specific age cohorts.​ ​Connecting All Users with Safety and Civility​ ​Roblox continues to push forward on setting the Global Standard for healthy, safe, and​ ​age-appropriate digital engagement. In 2026, we have taken significant steps towards this goal​ ​with the global rollout of proactive age-checks to access communications in January and Roblox​ ​Kids and Select age-based accounts in June. We also continue to refine our AI-powered text and​ ​voice moderation systems to help maintain high levels of safety for all users on our platform.​ ​Driving Steady Progress in Age-Check Penetration.​​By the end of Q2, 57% of global DAUs have​ ​age-checked, led by strong execution in developed countries. Specifically, the U.S. and Australia​ ​surpassed 70% penetration—advancing toward our 90% long-term goal. APAC also saw a​ ​meaningful uptick as we modified Verified Parental Consent (VPC) requirements in some countries.​ ​In Indonesia, for example, the age-check penetration rate saw a double digit percentage increase​ ​in Q2. Notably, age-check penetration rates with U18 users are 60% globally and 75% in the U.S.​ ​Kids & Select Accounts Enhance Age-Appropriate Games.​​In June, we introduced age-based​ ​accounts to better align content access with communication settings and parental controls,​ ​fostering a safer environment for users of all ages. To date, the short-term impact from Kids and​ ​Select on engagement and bookings has been in line with our expectations, and we have seen an​ ​increase in age-check penetration in younger cohorts. The catalog of content available to younger​ ​users continues to expand rapidly: Kids and Select accounts now offer access to about 30,000​ ​games, representing a nearly 50% increase since launch.​ ​Safe Multi-Modal Communications.​​We have started to​​see improvement in on-platform​ ​communications, though we still have more work to do to drive on-platform communications above​ ​pre-age check levels. Following last quarter’s reduction in on-platform communication, we are​ ​executing a multi-modal roadmap across text, voice, and video to increase chat density and​ ​improve player experience.​ ​4​ ​Play through rate represents the percentage of players who, when shown a game icon on “Recommended​ ​For You”, press the Play button and join the game. First play bounce rate represents the percentage of users​ ​who launch a specific game for the very first time and exit (bounce) within a short initial threshold—typically​ ​under 30 to 90 seconds—without engaging in meaningful gameplay.​ ​6​

 

​In May, we shipped​​Global Chat​​, which​​scaled to an​​average of 30 million daily messages in June.​ ​July’s rollout of​​Quick Words​​is already generating​​over five million safe, effortless gameplay​ ​coordinating messages per day. We will build on this momentum with the launch of several new​ ​communication tools. As a first step, in Q3 we are deploying​​In-Experience Friends Chat​​, which​ ​brings real-time text messaging directly into a game. By moving friends chat directly into the main​ ​chat window, users can easily switch between server chat, global chat, and friends chat without​ ​leaving their game. Together, these tools are aimed at keeping players seamlessly connected​ ​within our native ecosystem.​​Voice Typing​​is a speech to text feature that uses Roblox's speech AI​ ​models to seamlessly allow users to chat with other users in the server without slowing down​ ​game play.​​Integrated Voice Calls​​will enable users​​to initiate real-time, high-fidelity voice​ ​communications directly within the Roblox app.​ ​Longer term, our vision is to become the definitive platform for interactive entertainment, play, and​ ​connection. Today, co-play (playing together with friends) drives a large share of playtime on​ ​Roblox, yet we believe a significant portion utilizes off-platform communication tools which may​ ​not align with our safety standards. Our roadmap includes a plan to provide users the option to​ ​video chat with friends or stream with their Roblox avatar. Because the calls will originate within​ ​the Roblox app and accompany users as they move between games, they deliver a safer, richer,​ ​more immersive connection than any off-platform alternative.​ ​Leveraging AI to Turn Everyone into a Builder​ ​Roblox was founded on a simple premise: “You Make the Game.” For two decades, we have​ ​pushed technological boundaries to make it easier for creators to bring their ideas to life. Today, AI​ ​is democratizing game creation – enabling more users to build than ever before.​ ​Build: Prompt-Based Game Creation for All Users.​​Earlier this month, we announced​​Build​​, a new​ ​mobile-first creation tab in the Roblox app. Powered by open-source and proprietary Roblox​ ​models, Build enables users, regardless of development experience, to turn a set of prompts into a​ ​playable game by automatically handling complex mechanics, coding, and analytics. We recently​ ​launched a public alpha in New Zealand for users aged 9+, with plans for a broader rollout in​ ​coming months. A base tier of Build is available at no cost, with paid tiers for power users.​ ​Empowering every user to become a creator enables more content creation, driving deepening​ ​engagement, and further fueling the Roblox flywheel. While Build is early in its rollout, the​ ​technology is advancing rapidly and the quality of games created during internal testing has been​ ​7​

 

​impressive. You can see several examples of live​​gameplay​​from Build - we can't wait for what’s to​ ​come.​ ​AI Momentum and Adoption.​​Creator use of AI tools​​is scaling rapidly, with adoption rates among​ ​our top 1,000 and top 10,000 creators by Robux spent up approximately 15 percentage points​ ​quarter over quarter. Enhancements to our AI-native Studio helped drive a 20% sequential​ ​increase in creators using our agentic Studio Assistant. Additionally, in a survey of several​ ​thousand Roblox creators who use AI for development work, 95% said AI speeds up their timeline​ ​to launch new games or game updates into production, of which nearly half experienced an over​ ​50% acceleration in publishing timeline. These advancements reinforce our vision to redefine the​ ​future of Play—freeing creators from tedious technical work so they can focus on high-value​ ​creative design. Adoption of our 3D generative AI tools continues to scale. Creators are now​ ​generating over 60,000 3D assets per day and nearly 1,400 games use Cube-generated content​ ​daily—early evidence that these tools are gaining traction with creators ranging from emerging​ ​developers to some of the platform's largest experiences.​ ​Advanced Creator Agents.​​Over the next several months,​​we are shipping a suite of professional​ ​AI agents across Build and Studio to further streamline development: 1) Playtesting Agent​ ​automates QA and bug detection, eliminating the need for manual testing, 2) Analytics Agent​ ​provides creators performance insights via natural language queries, and 3) Experiment Agent​ ​recommends targeted A/B tests to optimize engagement, retention, and monetization.​ ​Key Metrics and Financials: Q2 2026​ ​Users & Engagement.​​DAUs grew 10% year-over-year to​​123 million and Hours grew 5%​ ​year-over-year to 29 billion despite challenging prior year comparables. In June, Roblox was​ ​reinstated in Russia. This had a modest benefit to sequential DAUs and Hours trends, though it​ ​remained an approximate three percentage point headwind to year-over-year growth in DAUs and​ ​Hours, as we were unblocked in Russia late in the quarter.​ ​8​

 

​We continued to see strong international growth. For example, DAU growth in Japan and India was​ ​67% and 64% year-over-year, respectively, while DAUs in the U.S. and Canada grew 6%​ ​year-over-year. Similar to user growth, Hours in Japan and India grew 61% and 59%​ ​year-over-year, respectively, while Hours in the U.S. and Canada grew 1%, reflecting challenging​ ​prior year comparables.​ ​Content Diversity.​​We continued to see a broadening​​of content across the platform; our updated​ ​search and discovery algorithm has helped new games like​​Animal Hospital​​,​​Grow a Garden 2, and​ ​Kick a Lucky Block​​quickly move from initial release​​to top experiences. The long tail of content​ ​showed continued strength, as experiences outside of the top 10 saw 25% year-over-year growth​ ​in Hours and greater than 20% year-over-year growth in Robux spend.​ ​Overall, our platform today is more diversified than ever and content breadth has improved​ ​significantly. In Q2, our top 10 games accounted for about 20% of Hours, down from 30% in the​ ​same time period three years ago.​ ​Monetization.​​Overall, average monthly unique payers​​(MUPs) increased to 27 million, up 15%​ ​year-over-year. We continued to see solid payer growth in international markets, as MUPs outside​ ​of the U.S. and Canada grew 23% year-over-year. While payer growth was strong, monetization in​ ​the quarter reflects the impact of changes to our discovery algorithm, which resulted in a mix-shift​ ​towards lower monetizing content.​ ​Cost Components.​ ​As a % of Revenue​ ​As a % of Bookings​ ​Q2 2026​ ​Q2 2025​ ​bps​ ​Change​​(A)​ ​Q2 2026​ ​Q2 2025​ ​bps​ ​Change​​(A)​ ​Cost of Revenue​ ​20%​ ​22%​ ​(190)​ ​NM​​(B)​ ​NM​​(B)​ ​NM​​(B)​ ​Developer Exchange Fees​ ​25%​ ​29%​ ​(460)​ ​23%​ ​22%​ ​130​ ​Certain Infrastructure and Trust & Safety​ ​Expense​ ​16%​ ​14%​ ​190​ ​15%​ ​11%​ ​450​ ​Personnel Costs excl. Stock-Based​ ​Compensation Expense​ ​19%​ ​23%​ ​(330)​ ​18%​ ​17%​ ​120​ ​(A)​ ​Change is calculated using precise figures and may not sum based on the rounded percentages presented.​ ​(B)​ ​Cost of revenue as a percentage of bookings is not meaningful as the vast majority of these costs are deferred​ ​and will be recognized over the estimated average lifetime of a paying user, which was 27 months for both Q2​ ​2026 and Q2 2025.​ ​9​

 

​●​ ​Cost of revenue grew 24% year-over-year, totaling $292 million. In Q2 2026, the share of​ ​bookings from lower-cost platforms grew relative to the prior year, resulting in lower​ ​payment processing fees in the current period as a percentage of bookings.​ ​●​ ​Developer Exchange (DevEx) fees grew 15% year-over-year, totaling $363 million. The​ ​growth in DevEx fees reflected the increase to creator earnings we announced on​ ​September 5, 2025.​ ​●​ ​Certain Infrastructure and Trust & Safety expenses grew 54% year-over-year, totaling $236​ ​million. The increase was driven by an increase in AI-related investments, as well as higher​ ​costs related to trust and safety, including safety-related marketing.​ ​●​ ​Personnel costs excluding stock-based compensation expenses grew 16% year-over-year,​ ​totaling $283 million, driven by an increase in headcount compared to the same period a​ ​year ago.​ ​Consolidated net loss & Adjusted EBITDA.​​Consolidated net loss was $185 million, compared to​ ​$280 million in Q2 2025. Adjusted EBITDA was $152 million, compared to $18 million in Q2 2025.​ ​Adjusted EBITDA excludes adjustments for an increase in deferred revenue of $99 million and a​ ​decrease in deferred cost of revenue of $9 million, or a total change in deferrals of $108 million in​ ​Q2 2026 compared to a total change in net deferrals of $301 million in Q2 2025.​ ​Cash Flow.​​Operating cash flow was $318 million in Q2 2026 compared to $199 million in Q2 2025,​ ​and free cash flow totaled $294 million in Q2 2026 compared to $177 million in Q2 2025. As a​ ​reminder, operating and free cash flow in Q2 2025 included a $30 million payout to a creator that​ ​was delayed from Q1 2025. Total cash, cash equivalents, and investments was $6.1 billion as of​ ​June 30, 2026, an increase of $1.4 billion compared to the previous year’s balance.​ ​Share Repurchase Program.​​On May 19, 2026, we announced that our Board of Directors​ ​authorized the repurchase of up to $3 billion of our common stock with the intent to repurchase $1​ ​billion over the twelve months following the date of the announcement. The program is designed to​ ​partially offset dilution from employee equity grants while also preserving flexibility to invest in​ ​future growth opportunities. In Q2 2026, we repurchased 8.2 million shares for approximately $380​ ​million.​ ​Share Count.​​Our fully diluted share count was 752 million shares as of June 30, 2026, an​ ​increase of 2% compared to the previous year. Equity is an important part of hiring and retaining​ ​exceptional people and we will continue to strike a balance between dilution and the key value​ ​drivers in our business, namely bookings and free cash flow growth.​ ​10​

 

​GAAP Accounting & Profitability.​​For GAAP accounting, the vast majority of the Q2 bookings and​ ​associated payment processing fees are deferred and will be recognized as revenue and cost of​ ​revenue, respectively, over the estimated average lifetime of a paying user, which was 27 months​ ​during Q2 2026. Meanwhile, our other operating costs, which include DevEx fees, personnel costs,​ ​and certain infrastructure and trust & safety expenses, are recognized during the period.​ ​Guidance​ ​Our conviction in the ability to deliver 20%+ compounded top line growth over the long term has​ ​not changed. As we’ve said before, the trajectory of this growth will be non-linear due to the​ ​inherent variability of our business and the timing of investment necessary to scale. For example,​ ​in 2026, we are making foundational platform changes across safety and discovery and we are​ ​investing aggressively in AI-enablement for creators – all of which leads to a wider range of​ ​outcomes for the full year. In light of these changes, we are accelerating our previously announced​ ​transition to quarterly-only guidance by one quarter, issuing guidance for Q3, but not the full year.​ ​Given our long-term focus we do not believe annual guidance is a helpful tool for investors.​ ​For Q3 2026, we expect revenue to increase by 4% to 10% year-over-year, and bookings to​ ​decline 14% to 18% year-over-year​​5​​. We expect a sequential increase in DAUs, benefitting from​ ​seasonality and our recent discovery algorithm changes, though monetization softness observed​ ​in Q2 is expected to persist in Q3.​ ​Given our expectations for Q3 bookings, we expect fixed cost deleveraging. Additionally, we​ ​anticipate incremental investments in infrastructure to support AI-related initiatives like Build,​ ​Roblox Reality, and Moments.​ ​In Q3 2026, we expect operating cash flow in the range of $110 million to $175 million and free​ ​cash flow in the range of $(60) million to $5 million, including previously disclosed back-half​ ​loaded capital expenditures. Our Q3 operating and free cash flow expectations include an​ ​approximate $40 million year-over-year headwind to working capital related to the timing of​ ​creator payouts.​ ​5​ ​Revenue is expected to grow year-over-year despite an expected decline in bookings reflecting our GAAP​ ​revenue recognition policy, whereby the vast majority of bookings are recognized as revenue over 27 months.​ ​As a result, Q3 2026 revenue includes flow-through from prior period bookings, particularly elevated​ ​bookings throughout 2025.​ ​11​

 

​Guidance​ ​Q3 2026​ ​($ in millions)​ ​Low​ ​High​ ​Revenue​​(A)​ ​$ 1,413​ ​$ 1,490​ ​YoY %​ ​4%​ ​10%​ ​Bookings​​(A)​ ​$ 1,576​ ​$ 1,653​ ​YoY %​ ​(18)%​ ​(14)%​ ​Consolidated net loss​​(B)​ ​$ (348)​ ​$ (307)​ ​Adjusted EBITDA​ ​$ —​ ​$ 41​ ​Total net increase in deferred revenue and deferred cost of revenue​ ​$ 158​ ​$ 158​ ​Net cash and cash equivalents provided by operating activities​ ​$ 110​ ​$ 175​ ​Capital expenditures and purchases of intangible assets​ ​$ (170)​ ​$ (170)​ ​Free cash flow​​(A)​ ​$ (60)​ ​$ 5​ ​YoY %​ ​NM​ ​(99)%​ ​(A)​ ​The reconciliations from revenue to bookings, consolidated net loss to Adjusted EBITDA, and operating cash flow​ ​to free cash flow are provided in the following section GAAP to Non-GAAP Reconciliations. Our revenue guidance​ ​assumes that there are no material changes in estimates used in revenue recognition, such as the estimated​ ​consumable/durable allocation of virtual goods purchased on the platform and the estimated average lifetime of a​ ​paying user.​ ​(B)​ ​Consolidated net loss guidance excludes loss contingency accruals, given the inherent uncertainty in estimates of​ ​future probability and/or range of loss based on the facts and circumstances that exist as of July 30, 2026.​ ​12​

 

​Roblox Corporation​​Financial Statements​ ​ROBLOX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS​ ​Unaudited ($ in millions)​ ​As of​ ​June 30, 2026​ ​December 31, 2025​ ​Assets​ ​Current assets:​ ​Cash and cash equivalents​ ​$ 991​ ​$ 1,205​ ​Short-term investments​ ​2,023​ ​1,850​ ​Accounts receivable—net of allowances​ ​498​ ​901​ ​Prepaid expenses and other current assets​ ​139​ ​109​ ​Deferred cost of revenue, current portion​ ​883​ ​833​ ​Total current assets​ ​4,534​ ​4,898​ ​Long-term investments​ ​3,070​ ​2,493​ ​Property and equipment—net​ ​823​ ​885​ ​Operating lease right-of-use assets​ ​689​ ​651​ ​Deferred cost of revenue, long-term​ ​421​ ​448​ ​Intangible assets, net​ ​20​ ​18​ ​Goodwill​ ​163​ ​143​ ​Other assets​ ​25​ ​21​ ​Total assets​ ​$ 9,745​ ​$ 9,557​ ​Liabilities and Stockholders’ equity​ ​Current liabilities:​ ​Accounts payable​ ​$ 24​ ​$ 65​ ​Accrued expenses and other current liabilities​ ​479​ ​396​ ​Developer exchange liability​ ​421​ ​496​ ​Deferred revenue—current portion​ ​4,596​ ​4,169​ ​Total current liabilities​ ​5,520​ ​5,126​ ​Deferred revenue—net of current portion​ ​2,308​ ​2,337​ ​Operating lease liabilities​ ​669​ ​643​ ​Long-term debt, net​ ​1,009​ ​993​ ​Other long-term liabilities​ ​110​ ​83​ ​Total liabilities​ ​9,616​ ​9,182​ ​Stockholders' equity​ ​Common stock​ ​—*​ ​—*​ ​Additional paid-in capital​ ​5,661​ ​5,438​ ​Accumulated other comprehensive income/(loss)​ ​(19)​ ​17​ ​Accumulated deficit​ ​(5,490)​ ​(5,061)​ ​Total Roblox Corporation stockholders' equity​ ​152​ ​394​ ​Noncontrolling interest​ ​(23)​ ​(19)​ ​Total stockholders' equity​ ​129​ ​375​ ​Total liabilities and stockholders' equity​ ​$ 9,745​ ​$ 9,557​ ​* Amounts round to zero.​ ​13​

 

​ROBLOX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS​ ​Unaudited ($ in millions, except number of shares which are in thousands, and per share amounts)​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​2026​ ​2025​ ​2026​ ​2025​ ​Revenue​ ​$1,469​ ​$1,081​ ​$2,911​ ​$2,116​ ​Costs and expenses:​ ​Cost of revenue​​(1)​ ​292​ ​236​ ​586​ ​461​ ​Developer exchange fees​ ​363​ ​316​ ​786​ ​598​ ​Infrastructure and trust & safety​ ​363​ ​261​ ​687​ ​503​ ​Research and development​ ​420​ ​385​ ​842​ ​759​ ​General and administrative​ ​199​ ​152​ ​408​ ​271​ ​Sales and marketing​ ​61​ ​53​ ​125​ ​101​ ​Total cost and expenses​ ​1,698​ ​1,403​ ​3,434​ ​2,693​ ​Loss from operations​ ​(229)​ ​(322)​ ​(523)​ ​(577)​ ​Interest income​ ​59​ ​49​ ​114​ ​95​ ​Interest expense​ ​(10)​ ​(11)​ ​(20)​ ​(21)​ ​Other income/(expense), net​ ​(3)​ ​5​ ​(1)​ ​9​ ​Loss before income taxes​ ​(183)​ ​(279)​ ​(430)​ ​(494)​ ​Provision for/(benefit from) income taxes​ ​2​ ​1​ ​3​ ​2​ ​Consolidated net loss​ ​(185)​ ​(280)​ ​(433)​ ​(496)​ ​Net loss attributable to the noncontrolling interest​ ​(2)​ ​(2)​ ​(4)​ ​(3)​ ​Net loss attributable to common stockholders​ ​$ (183)​ ​$ (278)​ ​$ (429)​ ​$ (493)​ ​Net loss per share attributable to common​ ​stockholders, basic and diluted​ ​$ (0.26)​ ​$ (0.41)​ ​$ (0.60)​ ​$ (0.73)​ ​Weighted-average shares used in computing net loss​ ​per share attributable to common​ ​stockholders—basic and diluted​ ​716,767​ ​684,837​ ​714,246​ ​678,307​ ​(1)​ ​Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.​ ​14​

 

​ROBLOX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS​ ​Unaudited ($ in millions)​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​2026​ ​2025​ ​2026​ ​2025​ ​Cash flows from operating activities:​ ​Consolidated net loss​ ​$(185)​ ​$(280)​ ​$(433)​ ​$(496)​ ​Adjustments to reconcile consolidated net loss to net cash​ ​and cash equivalents provided by operating activities:​ ​Depreciation and amortization expense​ ​65​ ​54​ ​126​ ​108​ ​Stock-based compensation expense​ ​282​ ​285​ ​557​ ​544​ ​Operating lease non-cash expense​ ​34​ ​30​ ​66​ ​60​ ​Accretion on marketable securities, net​ ​(11)​ ​(15)​ ​(23)​ ​(34)​ ​Other adjustments​ ​(3)​ ​5​ ​(11)​ ​5​ ​Changes in operating assets and liabilities, net of​ ​effect of acquisitions:​ ​Accounts receivable​ ​41​ ​(123)​ ​407​ ​87​ ​Prepaid expenses and other current assets​ ​(7)​ ​(12)​ ​(34)​ ​(24)​ ​Deferred cost of revenue​ ​8​ ​(63)​ ​(24)​ ​(93)​ ​Other assets​ ​4​ ​(2)​ ​(1)​ ​(7)​ ​Accounts payable​ ​2​ ​(6)​ ​(32)​ ​12​ ​Accrued expenses and other current liabilities​ ​15​ ​13​ ​68​ ​8​ ​Developer exchange liability​ ​(3)​ ​(32)​ ​(75)​ ​(25)​ ​Deferred revenue​ ​99​ ​363​ ​401​ ​538​ ​Operating lease liabilities​ ​(37)​ ​(28)​ ​(72)​ ​(53)​ ​Other long-term liabilities​ ​14​ ​10​ ​27​ ​13​ ​Net cash and cash equivalents provided​ ​by operating activities​ ​318​ ​199​ ​947​ ​643​ ​Cash flows from investing activities:​ ​Acquisition of property and equipment​ ​(22)​ ​(23)​ ​(55)​ ​(40)​ ​Purchases of intangible assets​ ​(2)​ ​—​ ​(2)​ ​—​ ​Payments related to business combinations, net of cash​ ​acquired​ ​(6)​ ​—​ ​(6)​ ​—​ ​Purchases of investments​ ​(966)​ ​(1,441)​ ​(2,983)​ ​(2,611)​ ​Maturities of investments​ ​569​ ​809​ ​1,649​ ​1,809​ ​Sales of investments​ ​284​ ​260​ ​577​ ​412​ ​Other investing activities​ ​1​ ​—​ ​3​ ​—​ ​Net cash and cash equivalents used in​ ​investing activities​ ​(142)​ ​(395)​ ​(817)​ ​(430)​ ​Cash flows from financing activities:​ ​Proceeds from issuance of common stock​ ​3​ ​27​ ​34​ ​64​ ​Repurchases of common stock​ ​(375)​ ​—​ ​(375)​ ​—​ ​Net cash and cash equivalents provided​ ​by (used in) financing activities​ ​(372)​ ​27​ ​(341)​ ​64​ ​Effect of exchange rate changes on cash and cash​ ​equivalents​ ​(1)​ ​5​ ​(3)​ ​6​ ​Net increase/(decrease) in cash and cash equivalents​ ​(197)​ ​(164)​ ​(214)​ ​283​ ​Cash and cash equivalents​ ​Beginning of period​ ​1,188​ ​1,159​ ​1,205​ ​712​ ​End of period​ ​$991​ ​$995​ ​$991​ ​$995​ ​15​

 

​Forward-Looking Statements​ ​This letter and the live webcast and Q&A session which will be held at 1:30 p.m. Pacific Time/4:30​ ​p.m. Eastern Time on Thursday, July 30, 2026 contain “forward-looking statements” within the​ ​meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995,​ ​including but not limited to, statements regarding our vision to connect one billion users with​ ​optimism and civility, our vision to reach 10% of the global gaming content market, our efforts to​ ​improve the Roblox platform, our trust and safety efforts, including our efforts to expand​ ​age-checking of​​users, our goal to drive the percent​​of users that have age-checked up, and our​ ​efforts related to Roblox Kids and Roblox Select,​​our investments in AI-powered initiatives,​ ​including Roblox Reality, Build, and other AI tools for creators, our efforts related to growing our​ ​global audience and broadening our content offering, including through 2D and novel games​ ​expansion, our efforts to improve creator economics, our partnership efforts, our efforts to improve​ ​discovery and communication engagement on platform, including through our search and​ ​discovery algorithm, Moments, and multi-modal communications, our efforts related to our​ ​subscription model, our efforts toward advertising on the platform, our efforts regarding user​ ​acquisition and retention, our recent and anticipated product launches,​​our business, product,​ ​strategy, and user growth, our investment strategy, including opportunities for and expectations of​ ​improvements in financial and operating metrics, including operating leverage, margin, free cash​ ​flow, operating expenses, and capital expenditures, our expectation of successfully executing​ ​such strategies and plans, our expectations of future net losses and net cash and cash equivalents​ ​provided by operating activities, our expectations regarding our share repurchase program,​ ​statements by our Chief Executive Officer and Chief Financial Officer, and our outlook and​ ​guidance for the third quarter 2026. These forward-looking statements are made as of the date​ ​they were first issued and were based on current plans, expectations, estimates, forecasts, and​ ​projections as well as the beliefs and assumptions of management. Words such as “expect,”​ ​“vision,” “envision,” “evolving,” “drive,” “anticipate,” “intend,” “maintain,” “should,” “believe,”​ ​“continue,” “plan,” “goal,” “opportunity,” “estimate,” “predict,” “may,” “will,” “could,”​​“hope,”​ ​“target,” “project,” “potential,” “might,” “shall,” “contemplate,”​​“would,” and “initiative” and​ ​variations of these terms or the negative of these terms and similar expressions are intended to​ ​identify these forward-looking statements. Forward-looking statements are subject to a number of​ ​risks and uncertainties, many of which involve factors or circumstances that are beyond our​ ​control. Our actual results could differ materially from those stated or implied in forward-looking​ ​statements due to a number of factors, including but not limited to risks detailed in our filings with​ ​the Securities and Exchange Commission (the “SEC”), including our annual reports on Form 10-K,​ ​our quarterly reports on Form 10-Q, and other filings and reports we make with the SEC from time​ ​to time. In particular, the following factors, among others, could cause results to differ materially​ ​from those expressed or implied by such forward-looking statements: our ability to successfully​ ​execute our business and growth strategy; the sufficiency of our cash and cash equivalents and​ ​investments to meet our liquidity needs, including the repayment of our senior notes; the demand​ ​for our platform in general; our ability to sustain virality of games on our platform; the seasonality​ ​of our business and the impact of viral games; our ability to retain and increase our number of​ ​users and creators, while adequately scaling our infrastructure as engagement increases; changes​ ​in the average lifetime of a paying user; the impact of inflation, tariffs, and global economic​ ​16​

 

​conditions on our operations; the impact of changing legal and regulatory requirements on our​ ​business; our ability to develop enhancements to our platform, and bring them to market in a timely​ ​manner; our ability to develop and protect our brand; any misuse of user data or other undesirable​ ​activity by third parties on our platform; our ability to maintain the security and availability of our​ ​platform; our ability to detect and minimize unauthorized use of our platform; the impact of our​ ​trust and safety efforts on our ability to attract and retain users and creators; and the impact of AI​ ​on our platform, users, and creators. Additional information regarding these and other risks and​ ​uncertainties that could cause actual results to differ materially from our expectations is included​ ​in the reports we have filed or will file with the SEC, including our annual reports on Form 10-K and​ ​our quarterly reports on Form 10-Q.​ ​The forward-looking statements included in this letter represent our views as of the date of this​ ​letter. We anticipate that subsequent events and developments will cause our views to change.​ ​However, we undertake no intention or obligation to update or revise any forward-looking​ ​statements, whether as a result of new information, future events or otherwise. These​ ​forward-looking statements should not be relied upon as representing our views as of any date​ ​subsequent to the date of this letter.​ ​Special Note Regarding Operating Metrics​ ​Additional information regarding our core financial and operating metrics disclosed above is​ ​included in the reports we have filed or will file with the SEC, including our annual reports on Form​ ​10-K and our quarterly reports on Form 10-Q and our supplemental materials, available at​ ​ir.roblox.com. We encourage investors and others to review these materials in their entirety.​ ​Special Note Regarding Age-Check​ ​In the first quarter of 2026, we transitioned from self-reported age data to ‘age-checked’ data. All​ ​age-checked metrics included herein are estimates derived from limited information and evolving​ ​methodologies and are not directly comparable to historical self-reported data. Age-check​ ​penetration is an average based on the last seven days of the quarter. Additionally, certain​ ​demographic data presented are estimates based on extrapolation from data on users who have​ ​undergone age-checks, which may not be representative of actual age demographics on the​ ​platform. For example, for certain metrics we have applied the demographic distribution of our​ ​current 'age-checked' DAUs to our 'non-age-checked' DAUs to estimate growth and monetization​ ​rates for our U.S. O18 and 18–34 DAUs compared to other age cohorts. Extrapolated results may​ ​not fairly represent the actual demographic split or engagement and monetization levels of the​ ​‘non-age-checked’ DAUs.​ ​17​

 

​Non-GAAP Financial Measures​ ​This letter contains the following non-GAAP financial measures: bookings, Adjusted EBITDA, and​ ​free cash flow.​ ​We use this non-GAAP financial information to evaluate our ongoing operations and for internal​ ​planning and forecasting purposes. We believe that this non-GAAP financial information may be​ ​helpful to investors because it provides consistency and comparability with past financial​ ​performance. However, non-GAAP financial measures have limitations in their usefulness to​ ​investors because they have no standardized meaning prescribed by GAAP and are not prepared​ ​under any comprehensive set of accounting rules or principles. In addition, other companies,​ ​including companies in our industry, may calculate similarly titled non-GAAP financial measures​ ​differently or may use other measures to evaluate their performance, all of which could reduce the​ ​usefulness of our non-GAAP financial information as a tool for comparison. As a result, our​ ​non-GAAP financial information is presented for supplemental informational purposes only and​ ​should not be considered in isolation from, or as a substitute for financial information presented in​ ​accordance with GAAP.​ ​Reconciliation tables of the most comparable GAAP financial measure to each non-GAAP financial​ ​measure used in this letter are included at the end of this letter. We encourage investors and​ ​others to review our business, results of operations, and financial information in their entirety, not​ ​to rely on any single financial measure, and to view these non-GAAP measures in conjunction with​ ​the most directly comparable GAAP financial measures.​ ​Bookings​​represent the sales activity in a given period​​without giving effect to certain non-cash​ ​adjustments, as detailed below. Substantially all of our bookings are generated from sales of virtual​ ​currency, which can ultimately be converted to virtual items on the Roblox platform. Sales of virtual​ ​currency reflected as bookings include one-time purchases or monthly subscriptions purchased​ ​via payment processors or through prepaid cards. Bookings are initially recorded in deferred​ ​revenue and recognized as revenues over the estimated period of time the virtual items purchased​ ​with the virtual currency are available on the Roblox platform (estimated to be the average lifetime​ ​of a paying user) or as the virtual items purchased with the virtual currency are consumed.​ ​Bookings also include an insignificant amount from advertising and licensing arrangements. We​ ​believe bookings provide a timelier indication of trends in our operating results that are not​ ​necessarily reflected in our revenue as a result of the fact that we recognize the majority of​ ​revenue over the estimated average lifetime of a paying user. The change in deferred revenue​ ​constitutes the vast majority of the reconciling difference from revenue to bookings. By removing​ ​these non-cash adjustments, we are able to measure and monitor our business performance​ ​based on the timing of actual transactions with our users and the cash that is generated from these​ ​transactions. Over the long term, the factors impacting our revenue and bookings trends are the​ ​same. However, in the short term, there are factors that may cause revenue and bookings trends to​ ​differ.​ ​18​

 

​Adjusted EBITDA​​represents our GAAP consolidated net loss, excluding interest income, interest​ ​expense, other (income)/expense, net, provision for/(benefit from) income taxes, depreciation and​ ​amortization expense, stock-based compensation expense, and certain other non-routine​ ​adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted​ ​EBITDA is useful to investors and management in understanding our ongoing operations and​ ​ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by​ ​other companies and therefore comparability may be limited.​ ​Free cash flow​​represents the net cash and cash equivalents​​provided by operating activities, less​ ​purchases of property and equipment and intangible assets acquired through asset acquisitions.​ ​We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides​ ​information to management and investors about the amount of cash and cash equivalents​ ​generated from our core operations that, after the purchases of property and equipment, and​ ​intangible assets acquired through asset acquisitions, can be used for strategic initiatives.​ ​19​

 

​GAAP to Non-GAAP Reconciliations​ ​Note: Due to rounding, numbers presented throughout this letter may not add up precisely to the​ ​totals provided.​ ​The following table presents a reconciliation of revenue, the most directly comparable financial​ ​measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in​ ​millions, unaudited):​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​Reconciliation of revenue to bookings:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Revenue​ ​$1,469​ ​$1,081​ ​$2,911​ ​$2,116​ ​Add (deduct):​ ​Change in deferred revenue​ ​99​ ​365​ ​398​ ​543​ ​Other​ ​(11)​ ​(8)​ ​(21)​ ​(14)​ ​Bookings​ ​$1,557​ ​$1,438​ ​$3,288​ ​$2,645​ ​The following table presents a reconciliation of consolidated net loss, the most directly comparable​ ​financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the​ ​periods presented (in millions, unaudited):​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​Reconciliation of consolidated net loss​ ​to Adjusted EBITDA:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Consolidated net loss​ ​$(185)​ ​$(280)​ ​$(433)​ ​$(496)​ ​Add (deduct):​ ​Interest income​ ​(59)​ ​(49)​ ​(114)​ ​(95)​ ​Interest expense​ ​10​ ​11​ ​20​ ​21​ ​Other (income)/expense, net​ ​3​ ​(5)​ ​1​ ​(9)​ ​Provision for/(benefit from) income​ ​taxes​ ​2​ ​1​ ​3​ ​2​ ​Depreciation and amortization​ ​65​ ​54​ ​126​ ​108​ ​Stock-based compensation expense​ ​282​ ​285​ ​557​ ​544​ ​Legal settlement expenses​​(A)​ ​34​ ​—​ ​91​ ​—​ ​Other charges​ ​—​ ​2​ ​—​ ​2​ ​Adjusted EBITDA​ ​$152​ ​$18​ ​$251​ ​$76​ ​(A)​ ​Includes legal expenses related to settlements and settlement negotiations with certain states regarding​ ​youth-related consumer protection and digital safety matters. The Company has determined that these matters​ ​arise outside of the ordinary course of business, have limited historical precedent, are unpredictable in their​ ​magnitude, scope, and timing, and as a result are distinct from routine expenses incurred in ongoing operations.​ ​20​

 

​The following table presents a reconciliation of net cash and cash equivalents provided by​ ​operating activities, the most directly comparable financial measure calculated in accordance with​ ​GAAP, to free cash flow, for each of the periods presented (in millions, unaudited):​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​Reconciliation of net cash and cash​ ​equivalents provided by operating​ ​activities to free cash flow:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Net cash and cash equivalents provided​ ​by operating activities​ ​$318​ ​$199​ ​$947​ ​$643​ ​Add (deduct):​ ​Acquisition of property and​ ​equipment​ ​(22)​ ​(23)​ ​(55)​ ​(40)​ ​Purchases of intangible assets​ ​(2)​ ​—​ ​(2)​ ​—​ ​Free cash flow​ ​$294​ ​$177​ ​$890​ ​$604​ ​21​

 

​Forward Looking Guidance​​6​​: GAAP to​ ​Non-GAAP Financial Measures Reconciliations​ ​The following table presents a reconciliation of revenue, the most directly comparable financial​ ​measure calculated in accordance with GAAP, to bookings (in millions):​ ​Guidance​ ​Three Months Ended​ ​September 30, 2026​ ​Reconciliation of revenue to bookings:​ ​Low​ ​High​ ​Revenue​ ​$ 1,413​ ​$ 1,490​ ​Add (deduct):​ ​Change in deferred revenue​ ​173​ ​173​ ​Other​ ​(10)​ ​(10)​ ​Bookings​ ​$ 1,576​ ​$ 1,653​ ​The following table presents a reconciliation of consolidated net loss, the most directly comparable​ ​financial measure calculated in accordance with GAAP, to Adjusted EBITDA (in millions):​ ​Guidance​ ​Three Months Ended​ ​September 30, 2026​ ​Reconciliation of consolidated net loss to Adjusted EBITDA:​ ​Low​ ​High​ ​Consolidated net loss​​(A)​ ​$ (348)​ ​$ (307)​ ​Add (deduct):​ ​Interest income​ ​(50)​ ​(50)​ ​Interest expense​ ​11​ ​11​ ​Provision for/(benefit from) income taxes​ ​2​ ​2​ ​Depreciation and amortization​ ​75​ ​75​ ​Stock-based compensation expense​ ​310​ ​310​ ​Adjusted EBITDA​ ​$ —​ ​$ 41​ ​(A)​ ​Consolidated net loss guidance excludes loss contingency accruals, given the inherent uncertainty in estimates of​ ​future probability and/or range of loss based on the facts and circumstances that exist as of July 30, 2026.​ ​6​ ​Our revenue guidance assumes that there are no material​​changes in estimates used in our revenue recognition, such as​ ​the estimated consumable/durable allocation of virtual goods purchased on the platform and the estimated average lifetime​ ​of a paying user.​ ​22​

 

​The following table presents a reconciliation of net cash and cash equivalents provided by​ ​operating activities, the most directly comparable financial measure calculated in accordance with​ ​GAAP, to free cash flow (in millions):​ ​Guidance​ ​Three Months Ended​ ​September 30, 2026​ ​Reconciliation of net cash and cash equivalents provided by operating​ ​activities to free cash flow:​ ​Low​ ​High​ ​Net cash and cash equivalents provided by operating activities​ ​$ 110​ ​$ 175​ ​Add (deduct):​ ​Acquisition of property and equipment​ ​(170)​ ​(170)​ ​Free cash flow​ ​$ (60)​ ​$ 5​ ​23​

 

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