Roblox (RBLX) Stock Jumps 22% on Blockbuster Q4 Earnings Beat
TLDR
Roblox Q4 bookings jumped 63% to $2.2 billion, beating analyst estimates of $2.09 billion
Daily active users grew 69% to 144 million while hours engaged surged 88% to 35.2 billion
Company posted Q4 net loss of $318 million but free cash flow hit $307 million, doubling expectations
Q1 2026 bookings guidance of $1.69-$1.74 billion exceeds Wall Street’s $1.68 billion forecast
Mandatory age verification rollout completed globally in January, revealing 73% of users are under 18
Roblox shares rocketed 22% to $74 in after-hours trading Thursday after the gaming platform crushed fourth-quarter expectations. The stock had closed down 4% at $60.54 in regular trading.
Results:
Adj. EPS: $-0.45
Revenue: $2.22B
Net Loss: $318.11M
Strong bookings and user engagement growth supported cash flow despite ongoing net losses. pic.twitter.com/nPKoR1pP0y
— EarningsTime (@Earnings_Time) February 5, 2026
The company reported Q4 bookings of $2.2 billion, up 63% year-over-year. That topped analyst estimates of $2.09 billion.
Daily active users hit 144 million, a 69% increase from last year. Wall Street expected 138 million.
Roblox Corporation, RBLX
Hours engaged on the platform jumped 88% to 35.2 billion. Analysts projected 32.4 billion hours.
Free cash flow reached $307 million for the quarter. That more than doubled the $136 million analysts anticipated.
The U.S. and Canada accounted for $1.2 billion in bookings and 24 million daily users. The region also contributed 6.3 billion hours engaged.
Roblox posted a net loss of $318 million on revenue of $1.42 billion, up 43%. Analysts expected a loss of $323 million.
Strong Full-Year Performance
For full-year 2025, bookings climbed 55% to $6.8 billion, beating the $6.6 billion estimate. Revenue rose 36% to $4.9 billion with a net loss of $1.07 billion.
CEO David Baszucki called 2025 a banner year. He said the top 1,000 creators earned an average of $1.3 million.
“Roblox’s success is rooted in the boundless creativity of our creator community,” Baszucki stated. He added the company aims to connect one billion users and capture 10% of the global gaming market.
First-quarter 2026 bookings are expected between $1.69 billion and $1.74 billion. That represents growth of 40% to 44% year-over-year and beats the $1.68 billion analyst consensus.
The company projects Q1 free cash flow of $560 million to $584 million, up 31% to 37%. Analysts forecast $348 million.
Age Verification Impact
Roblox completed a global rollout of mandatory age verification in January. The company started the process late in Q4 in Australia, New Zealand and the Netherlands.
The age check revealed 73% of daily users are under 18. Specifically, 38% are between 13 and 17, while 35% are under 13. Only 27% are over 18.
Management said the verification created a mid-single-digit headwind to engagement growth and a low-single-digit headwind to bookings growth. However, the company views accurate age data as a long-term opportunity.
“Accurate age data unlocks a long-term opportunity to tailor features and content, increasing safety and civility, which in turn drives organic engagement growth,” Roblox stated.
The company disclosed 60% of daily users in the initial markets completed age verification. Globally, 45% of daily users had verified their age by quarter’s end.
Full-year 2026 bookings guidance came in at $8.28 billion to $8.55 billion, topping the $8.03 billion estimate. Free cash flow is expected between $1.6 billion and $1.8 billion versus the $1.5 billion consensus.
Roblox announced it will stop providing annual guidance starting in 2027. The company cited inherent variability in its business and will focus on quarterly forecasts instead.
The stock is down 25.3% year-to-date and 9.8% over the past 12 months.
The post Roblox (RBLX) Stock Jumps 22% on Blockbuster Q4 Earnings Beat appeared first on CoinCentral.
Filed under: News - @ February 6, 2026 9:22 am