One-glance verdict
Within fair range
$39.46 our estimate vs market $45.50
Wall Street consensus: $47.47 (20.3% higher than our fair-value estimate)
15% above our estimate
Fundamentals snapshot
Roblox Corporation
RBLX · NYQ · Communication Services · Electronic Gaming & Multimedia
Current price
$45.50
52-week range
$33.88 - $142.00
Market cap
$32.50B
Balance sheet
Healthy
-30.79x Concerning
Net cash $1.18B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 16.3% last year.
- Reward Free cash flow was positive in 6/10 years.
- Risk Return on equity was -432.3% last year — the company lost money on shareholders' equity.
What this company does
Roblox Corporation
Roblox is a massive online platform where millions of users, primarily younger people, play games and interact in virtual worlds. The company makes money by selling a digital currency called "Robux," which players use to buy virtual items and experiences within the games. This is important because Roblox doesn't create most of the games itself; instead, it provides the tools for a huge community of independent developers to build and earn money on the platform.
How the company got here
Roblox was founded in 2004 by David Baszucki and Erik Cassel, originally as an educational tool called "DynaBlocks" to simulate physics experiments. They soon realized its potential as a gaming platform and officially launched it as Roblox in 2006. The platform's popularity grew steadily, especially among younger audiences, by allowing users to create and share their own games. A key turning point was the introduction of Robux, a virtual currency, and the Developer Exchange (DevEx) program in 2013, which allowed creators to earn real money from their games. The company experienced massive growth in the late 2010s, which was further accelerated by the COVID-19 pandemic, and it became a publicly traded company in March 2021.
What it actually does
Roblox operates a global online platform that is more like a universe of games than a single game. Millions of user-created 3D experiences, often referred to as "games," are available for anyone to play for free. The company provides the tools for creation through "Roblox Studio," a free software application that lets developers build and publish their own games on the platform. Roblox also provides the underlying technology and infrastructure (the systems that make everything run) to host these millions of experiences for users on phones, computers, and gaming consoles.
Sale of Virtual Currency (Robux)
The main way Roblox makes money is by selling its virtual currency, called Robux, to users. Players purchase Robux with real money to buy virtual items for their avatar (their character in the game), such as clothing and accessories, or to gain special advantages and abilities within the millions of games on the platform. This is the company's largest source of income. Roblox also offers a "Roblox Plus" subscription, which gives users a monthly allowance of Robux and other exclusive benefits for a recurring fee.
Developer Economy
While users spend money on Robux, a significant portion of that money goes to the independent creators and developers who build the games. When a player spends Robux within a specific game, the developer of that game earns a share of it. Through the Developer Exchange program (often called "DevEx"), eligible creators can convert the Robux they've earned back into real-world currency. This system incentivizes developers to create popular and engaging content, which in turn attracts more players to the platform.
Brand Partnerships & Advertising
A smaller but growing part of the business involves partnerships with major brands. Companies like Disney, Lego, and Walmart have paid to create their own branded experiences, virtual items, and advertisements within the Roblox platform to reach its large user base. Instead of traditional ads, these are often interactive events or virtual spaces that users can engage with, making advertising feel more like part of the game. This allows brands to connect with millions of users in a more immersive way than typical online ads.
What management is betting on now
Roblox's leadership is focused on expanding the platform's appeal beyond its traditional younger audience to attract older users. They are encouraging the creation of more complex and high-quality games, such as role-playing and strategy games, to cater to this demographic. The company is also investing heavily in artificial intelligence (AI) to make game creation easier and more accessible for developers. Another key priority is growing internationally and continuing to build out immersive advertising opportunities for brands on the platform.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$218.03M
FY2024 Q4
$120.63M
FY2025 Q1
$426.55M
FY2025 Q2
$176.65M
FY2025 Q3
$443.60M
FY2025 Q4
$308.58M
FY2026 Q1
$596.00M
FY2026 Q2
$296.00M
Revenue
$1.47B
Net income
$-183.00M
Diluted EPS
-0.26
Operating cash flow
$318.00M
Free cash flow
$296.00M
Fetching…
Sources
Revenue
$1.44B
Net income
$-246.00M
Diluted EPS
-0.35
Operating cash flow
$629.00M
Free cash flow
$596.00M
Fetching…
Sources
Revenue
$1.42B
Net income
$-316.00M
Diluted EPS
-0.44
Operating cash flow
$607.00M
Free cash flow
$308.58M
Fetching…
Sources
Revenue
$1.36B
Net income
$-255.63M
Diluted EPS
-0.37
Operating cash flow
$546.18M
Free cash flow
$443.60M
Fetching…
Sources
Revenue
$1.08B
Net income
$-278.38M
Diluted EPS
-0.41
Operating cash flow
$199.26M
Free cash flow
$176.65M
Fetching…
Sources
Revenue
$1.04B
Net income
$-215.06M
Diluted EPS
-0.32
Operating cash flow
$443.91M
Free cash flow
$426.55M
Fetching…
Sources
Revenue
$988.18M
Net income
$-219.57M
Diluted EPS
-0.32
Operating cash flow
$184.49M
Free cash flow
$120.63M
Fetching…
Sources
Revenue
$918.95M
Net income
$-239.32M
Diluted EPS
-0.37
Operating cash flow
$247.43M
Free cash flow
$218.03M
Fetching…
Sources
Is it cheap or expensive?
Fair value $39.46 vs current price $45.50
Wall Street consensus is the average analyst price target: $47.47 (20.3% higher than our fair-value estimate).
Our most-likely fair value is $39.46 a share — about 13.3% away from today's price of $45.50, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $1.2B - more cash than debt. Interest coverage -30.8x.
Net debt
$-1.18B
Interest coverage
-30.79x
Roblox Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RBLX
BASELINE
Roblox Corporation
Total debt $1.84B Interest coverage -30.79x This is the baseline the peer rows are being compared against.
Total debt $2.94B Interest coverage -0.67x Neither company has much profit cushion over interest right now.
Total debt $1.87B Interest coverage 21.92x This peer still has a real interest-payment cushion, while RBLX does not.
Total debt $2.32B Interest coverage -19.95x Neither company has much profit cushion over interest right now.
Total debt $1.88B Interest coverage 9.06x This peer still has a real interest-payment cushion, while RBLX does not.
Total debt $4.13B Interest coverage 59.07x This peer still has a real interest-payment cushion, while RBLX does not.
What you should know
The case for and against RBLX
2 Rewards
1 Risk
Rewards
-
Revenue grew 16.3% last year.
-
Free cash flow was positive in 6/10 years.
Risks
-
Return on equity was -432.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-37.66x
P/B
213.62x
P/S
5.72x
EV/EBITDA
-37.11x
PEG ratio
8.18x
Profitability
How much profit each dollar creates
Gross margin
25.7%
Operating margin
-13.3%
Net margin
-17.6%
ROE
-432.3%
ROA
-7.7%
Health
Liquidity and balance-sheet strength
Debt / equity
14.23x
Current ratio
0.82x
Quick ratio
0.65x
Total debt
$1.84B
Total cash
$3.01B
Growth
How the business has been compounding
Revenue TTM
$5.69B
Revenue 5Y CAGR
26.3%
EPS TTM
-1.41
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$2.10B
Free CF TTM
$1.36B
FCF margin
23.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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