Explore Roblox's (RBLX) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.
The video game industry has seen slower growth over the past few years, but this only makes Roblox's (RBLX -9.12%) performance stand out. The company's user-generated content strategy and social interactions between users have created a vibrant gaming platform.
Roblox (RBLX) shares surged 10% on Thursday after posting better-than-expected Q2 revenue, bookings, and daily active users and issuing a more robust full-year bookings outlook than had been anticipated. Roblox CEO Dave Baszucki tells Yahoo Finance Executive Editor Brian Sozzi about the big quarter, the viral success of "Grow a Garden," and how AI may impact his company and the gaming industry.
In Q2 alone, Roblox paid out over $316 million to developers, which was 29% of revenue and 22% of bookings. That's up big YoY, and it shows how central creators are to the model. In Q2, bookings hit $1.44B, up 51% YoY, while revenue was $1.08B (+21%). Free cash flow was $177M, up 58%, and they've started to generate real operating leverage even though they still report GAAP net losses. Engagement is also trending up in a big way. In Q2 2025, Roblox had 111.8 million DAUs (+41% YoY), 27.4 billion hours engaged (+58%), and 23.4 million monthly payers (+42%). The average payer spent $20.48, which was up 6%.
Roblox's strong Q2 results, massive DAU growth, and viral game success support my upgrade to a "Buy" rating, despite high valuation. The company's ambition to capture 10% of the $180 billion global gaming market, with rapid Asia-Pacific expansion, drives my bullish thesis. Roblox is broadening its user base across age groups and genres, with rising average bookings per user and record paid users.
Some viral hits and a continuing investment in its platform drove double-digit growth in revenue and other key metrics for Roblox in the second quarter.
Roblox Corporation (NYSE:RBLX ) Q2 2025 Earnings Conference Call July 31, 2025 8:30 AM ET Company Participants David Baszucki - Founder, President, CEO & Chairman of the Board Naveen K. Chopra - Chief Financial Officer Stefanie Notaney - Senior Director of Financial & Corporate Communications Conference Call Participants Benjamin Thomas Black - Deutsche Bank AG, Research Division Brian Joseph Pitz - BMO Capital Markets Equity Research Cory Alan Carpenter - JPMorgan Chase & Co, Research Division Eric James Sheridan - Goldman Sachs Group, Inc., Research Division Jason Boisvert Bazinet - Citigroup Inc., Research Division Kenneth James Gawrelski - Wells Fargo Securities, LLC, Research Division Matthew Andrew Cost - Morgan Stanley, Research Division Ross Adam Sandler - Barclays Bank PLC, Research Division William Lampen - BTIG, LLC, Research Division Operator Good morning.
While the top- and bottom-line numbers for Roblox (RBLX) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
The company did post an EPS loss of 41 cents, which missed estimates by five cents.
Roblox (RBLX) came out with a quarterly loss of $0.41 per share versus the Zacks Consensus Estimate of a loss of $0.46. This compares to a loss of $0.32 per share a year ago.
Whether it serves as a chill escape from the onslaught of the real world or simply a way to beat vacation doldrums, a viral Roblox game about gardening has become the surprise hit of the summer.
Roblox's second-quarter earnings loom as investors weigh surging revenues, premium valuation and near-term profit headwinds.