Choose Rich Live
Tech

Roblox shares tumble as user engagement slides despite third-quarter bookings beat

Roblox reported third-quarter bookings of $1.70 billion and a narrower-than-expected net loss, but shares fell more than 16% in extended trading following year-over-year declines in daily active users and engagement hours.

Roblox logo in black text centered on a white background.
Image: @wallstengine

Roblox Corp. reported third-quarter bookings of $1.70 billion, falling 12% year over year but topping analyst projections of $1.62 billion to $1.63 billion. Revenue rose 16% from a year earlier to $1.57 billion. The company posted a net loss of $230 million, with a diluted loss per share of $0.32, beating Wall Street estimates that anticipated a wider per-share loss.[1][2][4]

Despite the financial beat, Roblox shares plunged 16% to 17% in after-hours trading as investors reacted to shrinking user engagement metrics. Daily active users dropped 9% year over year to 138 million, while player engagement hours fell 15% to 34 billion. Bloomberg reported that the platform faced an engagement slowdown following the rollout of more robust child-safety measures, while Polymarket noted that Roblox warned the upcoming release of Grand Theft Auto VI could create further engagement headwinds.[1][3][4][5][6]

For the third quarter, Roblox generated $395 million in operating cash flow and $364 million in free cash flow, while recording $49 million in legal settlement expenses. The company repurchased 4.4 million shares for approximately $200 million, leaving roughly $2.4 billion under its existing share buyback authorization. Looking ahead to the fourth quarter, Roblox guided bookings to between $1.89 billion and $2.00 billion and revenue between $1.47 billion and $1.58 billion.[4]

Key facts

  • Roblox generated $1.70 billion in Q3 bookings, down 12% year over year but above consensus estimates.
  • The company reported a Q3 net loss of $230 million and an EPS loss of $0.32, beating analyst expectations.
  • Daily active users declined 9% year over year to 138 million, and engagement hours dropped 15% to 34 billion.
  • Roblox shares fell between 16% and 17% in after-hours trading following the report.
  • Bloomberg reported that engagement declined following the introduction of stricter child-safety measures, while Polymarket reported Roblox warned GTA VI could also hurt user engagement.
  • Roblox guided fourth-quarter bookings to $1.89 billion to $2.00 billion and revenue to $1.47 billion to $1.58 billion.
  • Roblox bought back 4.4 million shares for approximately $200 million, leaving roughly $2.4 billion in repurchase authorization.

Sources · 6 sources

  1. TE

    Techmeme@TechmemePost on X ·

    Roblox reports Q3 bookings down 12% YoY to $1.7B, vs. $1.63B est., and DAUs down 9% to 138M, vs. 145.8M est.; RBLX drops 16%+ after hours (@cecianasta / Bloomberg) (Visit Techmeme dot com for the link and full context!)

    Open source
  2. TR

    TrendSpider@TrendSpiderPost on X ·

    $RBLX Q3 EARNINGS EPS: $(0.32) vs $(0.40) est ✅ Sales: $1.697B vs $1.621B est ✅ https://t.co/PbrLy4os7e

    Open source
  3. TE

    TechmemeArticle ·

    Roblox reports Q3 bookings down 12% YoY to $1.7B, vs. $1.63B est., and DAUs down 9% to 138M, vs. 145.8M est.; RBLX drops 16%+ after hours (Cecilia D'Anastasio/Bloomberg) Cecilia D'Anastasio / Bloomberg : Roblox reports Q3 bookings down 12% YoY to $1.7B, vs. $1.63B est., and DAUs down 9% to 138M, vs. 145.8M est.; RBLX drops 16%+ after hours — Roblox Corp. reported a year-over-year decline in player engagement after deploying more robust child-safety measures.

    Open source
  4. WS

    Wall St Engine@wallstenginePost on X ·

    ROBLOX $RBLX Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $1.57B; +16% YoY 🔹 Bookings: $1.70B (Est. $1.62B) 🟢; -12% YoY 🔹 EPS: -$0.32 (Est. -$0.44) 🟢 🔹 Adj. EBITDA: $138M (Est. $190M) 🔴; +200% YoY Users & Engagement: 🔹 DAUs: 138M (Est. 131M) 🟢; -9% YoY 🔹 Hours: 34B (Est. 32B) 🟢; -15% YoY Q4 Guide: 🔹 Bookings: $1.89B-$2.00B (Est. $2.0B) 🟡 🔹 Adj. EBITDA: -$70M to -$10M 🔹 FCF: -$190M to -$105M 🔹 Revenue: $1.47B-$1.58B; +4%-+12% YoY Other Q3 Metrics: 🔹 Free Cash Flow: $364M (Est. $146M) 🟢; -18% YoY 🔹 Operating Cash Flow: $395M; -28% YoY 🔹 Net Income: -$230M Capital Return: 🔹 Buybacks: 4.4M shares for approximately $200M 🔹 Remaining Authorization: approximately $2.4B Announcements: 🔹 Build: 500K+ users; 70K+ games published 🔹 Global Chat: nearly 30M daily messages Key Updates: 🔹 Legal settlement expenses: $49M

    Open source
  5. BL

    Bloomberg@businessPost on X ·

    Roblox reported third-quarter users that missed analysts’ expectations amid questions about whether a new hit game could reverse a recent slowdown in user engagement triggered by more robust child-safety measures https://t.co/t4g4xGt83K

    Open source
  6. PO

    Polymarket@PolymarketPost on X ·

    BREAKING: Roblox shares plunge -17% after reporting its first year-over-year decline in daily active users, while warning GTA VI could further hurt engagement.

    Open source