Roblox Corp. Class A (RBLX)

In August 2025, Roblox's stock experienced a downturn due to child safety lawsuits, global regulatory bans, and perceived missteps by the CEO. In Q2 2025, Roblox delivered robust earnings with revenue up 21% year-over-year and bookings surging 51%. In Q4 2025, the company announced strong financial results, surpassing expectations with a 43% increase in revenue and a 63% rise in bookings year-on-year, but reported a net loss. Macquarie maintained an 'Outperform' rating for RBLX but adjusted its price target. Roblox executives announced a transition to quarterly guidance after 2026.

Roblox's business experiences seasonality, with stronger demand typically observed in the fourth quarter. This seasonal strength is often supported by increased user growth and engagement, particularly in the latter half of the year.

Roblox Corp. operates a global immersive platform for connection and communication, primarily known for its user-generated content (UGC) gaming platform. The company is categorized within the Technology Services sector and the Packaged Software industry. Its core business revolves around enabling users to create, play, and connect in 3D digital worlds. The company's major products and components include Roblox Client, Roblox Studio, Roblox Cloud, and Robux. Roblox operates a free-to-play online video game platform with approximately 150 million daily active users and supports a virtual universe and a robust economy based on its Robux currency.

Roblox Corporation has a significant global presence, operating in the United States and internationally. The company has demonstrated strong international expansion, with particularly notable growth in the APAC region. Some countries have either fully blocked Roblox or mandated restrictions on in-game chat features due to child safety concerns.

Roblox's brand reputation has been shaped by child safety concerns and lawsuits, global regulatory bans, and CEO missteps. Hindenburg Research published a report alleging that Roblox inflated key metrics and compromised child safety. In response, Roblox has been heavily investing in safety, AI, and age verification technologies. Roblox is actively targeting the 18+ age group and experienced strong brand engagement, with over 210 brands having content on the platform.

Roblox Corporation's ownership is predominantly institutional, with 75.16% to 81.62% of RBLX owned by institutions. Major Institutional Owners include Vanguard Group Inc., Fmr Llc, and BlackRock, Inc. Insider ownership stands at approximately 0.75% to 17.04% of the company's shares. Key individual insiders include David Baszucki (President & CEO) and Gregory Baszucki.