Roblox Corporation (RBLX) | Investment Case

1. Company Snapshot

1.a. Company Description

Roblox Corporation develops and operates an online entertainment platform.The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform.It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific, and internationally.

The company was incorporated in 2004 and is headquartered in San Mateo, California.

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1.b. Last Insights on RBLX

Roblox's recent performance has been negatively impacted by widening losses, ongoing margin pressure, and a series of legal challenges. The company's high expenses, including increased developer exchange fees and capital expenditures, have offset its strong booking growth and operating cash flow. Investor sentiment has been affected by growth concerns and a bleak margin outlook. Additionally, several institutional investors, including Accredited Investors Inc. and Blue Whale Capital LLP, have reduced their stakes in the company. Heavy spending on developers, safety, and infrastructure is expected to continue.

1.c. Company Highlights

Last Price	96.28
Change Percentage	1.13%
Open	95.46
Previous Close	95.2
Market Cap ( Millions)	65354
Volume	6807112
Year High	150.59
Year Low	50.1
M A 50	115.49
M A 200	98.57

FCF Yield	1.97%
Dividend Yield	0.00%
ROE	-299.67%
Debt / Equity	151.61%
Net Debt / EBIDTA	48.64%
Price To Book	164.72
Price Earnings Ratio	-69.31
Price To FCF	50.76
Price To sales	14.64
EV / EBITDA	-79.2

2. Roblox's Q3 2025 Earnings: A Strong Showing with Growth Across Key Metrics

Roblox reported a revenue of $1.36 billion for Q3 2025, representing a 48% year-on-year increase, while bookings reached $1.92 billion, up 70% year-on-year. The company's earnings per share (EPS) came in at -$0.37, beating estimates of -$0.48572. Daily active users (DAUs) stood at 151.5 million, a 70% increase from the previous year, with the 13 and over age group growing 89% year-on-year. Hours of engagement also saw significant growth, reaching 39.6 billion, up 91% year-on-year. According to David Baszucki, the platform's ability to attract new users with hits like "Dress To Impress" and "Grow a Garden" drives organic growth.

Publication Date: Nov -01

                                    📋 Highlights
                                    Global Gaming Bookings Share Growth:
                                                Roblox captured 3.2% of global gaming bookings in Q3 2025, up from 2.3% in the prior year.
User Engagement Surge:
                                                Daily active users (DAUs) reached 151.5 million, a 70% YoY increase, with DAUs aged 13+ rising 89% YoY.
Revenue and Bookings Growth:
                                                Q3 revenue hit $1.36 billion (+48% YoY), while bookings soared to $1.92 billion (+70% YoY).
Creator Economy Expansion:
                                                Creator earnings surpassed $1 billion in the first 9 months of 2025, driven by an 8.5% DevEx rate increase.
Infrastructure and AI Investments:
                                                Roblox achieved a 45 million peak concurrency milestone and operates over 400 AI systems internally.

                                

Growth Drivers and User Engagement

The company's growth can be attributed to its existing and new experiences on the platform, with 7 experiences having over 10 million daily active users. Roblox's virtual economy and infrastructure investments supported multiple records, including a 45 million peak concurrency. The company announced an 8.5% increase to the DevEx rate, resulting in creator earnings surpassing $1 billion in the first 9 months of 2025. Investments in AI, safety, and infrastructure are ongoing, with over 400 AI systems running inside the company.

Monetization Strategies and Future Outlook

Roblox is optimistic about its long-term opportunities in advertising but remains cautious about the near term. The company has onboarded over 140 creators for rewarded video and aims to integrate it thoughtfully to ensure it works for creators and users. With a focus on genre expansion, content diversity, and velocity, Roblox is well-positioned to drive growth in the $180-200 billion global gaming market. Analysts estimate next year's revenue growth at 22.4%.

Valuation and Key Metrics

Roblox's current valuation metrics include a P/S Ratio of 17.55 and an EV/EBITDA of -95.04. The company's ROE stands at -300.21%, and its ROIC is -27.68%. The Free Cash Flow Yield is 1.67%. These metrics indicate that the market has high expectations for Roblox's future growth, and any deviation from these expectations could impact the stock's performance.

3. NewsRoom

Anthony Lee Sells 66,000 Shares of Roblox (NYSE:RBLX) Stock

Dec -04

Source: defenseworld.net

Roblox banned in Russia, local media says

Dec -03

Source: techcrunch.com

Russia blocks access to US children's gaming platform Roblox

Dec -03

Source: reuters.com

Blueshift Asset Management LLC Has $3.51 Million Stake in Roblox Corporation $RBLX

Dec -02

Source: defenseworld.net

Roblox (NYSE:RBLX) and Chilco River (OTCMKTS:CRVH) Critical Survey

Dec -02

Source: defenseworld.net

Reviewing Roblox (NYSE:RBLX) and DraftKings (NASDAQ:DKNG)

Nov -30

Source: defenseworld.net

Roblox vs. Unity: Which Metaverse Stock Is the Better Buy Now?

Nov -28

Source: zacks.com

Virtus Silvant Mid-Cap Growth Fund Q3 2025 Performance Review

Nov -26

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (47.20%)

6. Segments

Internet Information Providers

Expected Growth: 47.2%

Roblox's user-generated content and social features drive growth in the internet information providers segment, with a large user base and increasing monetization opportunities.

7. Detailed Products

Roblox Platform

A user-generated game platform that allows users to create and play a wide variety of games in a virtual world.

Robux

A virtual currency used to purchase in-game items, accessories, and perks.

Premium Subscription

A monthly subscription service that offers exclusive benefits, such as bonus Robux, access to premium items, and enhanced customization options.

Advertising

A platform that allows brands to reach a large and engaged user base through targeted advertisements.

Roblox Studio

A game development tool that allows users to create and publish games on the Roblox platform.

8. Roblox Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Roblox's unique user-generated game platform and large user base make it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative gaming platforms, Roblox's strong brand loyalty and user engagement mitigate this power.

Bargaining Power Of Suppliers

Roblox has a large pool of developers and creators, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

While there are barriers to entry in the gaming industry, new entrants can still emerge, but Roblox's established brand and user base provide a competitive advantage.

Intensity Of Rivalry

The online gaming industry is highly competitive, with many established players, making rivalry intense.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	93.60%
Debt Cost	3.95%
Equity Weight	6.40%
Equity Cost	12.07%
WACC	4.47%
Leverage	1463.22%

11. Quality Control: Roblox Corporation passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Remitly Global

A-Score: 4.7/10

Value: 2.6

Growth: 6.0

Quality: 6.2

Yield: 0.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Roblox

A-Score: 4.4/10

Value: 4.0

Growth: 5.2

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

Zebra Technologies

A-Score: 3.8/10

Value: 3.4

Growth: 5.4

Quality: 6.6

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

Silicon Labs

A-Score: 3.4/10

Value: 4.6

Growth: 1.9

Quality: 3.0

Yield: 0.0

Momentum: 6.5

Volatility: 4.3

1-Year Total Return ->

Perficient

A-Score: 3.2/10

Value: 0.6

Growth: 7.2

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

Allegro MicroSystems

A-Score: 3.2/10

Value: 2.4

Growth: 1.7

Quality: 3.7

Yield: 0.0

Momentum: 7.5

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

7.74%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.47%

Roblox Corporation - US7710491033

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on RBLX

1.c. Company Highlights

Lower Quality

Medium Volatility

Stable Momentum

Earnings Beats

Revenues Miss

Average Yield

Strong Momentum

Average Growth

Earnings Miss

Revenues Beats

Average Quality

2. Roblox's Q3 2025 Earnings: A Strong Showing with Growth Across Key Metrics

Growth Drivers and User Engagement

Monetization Strategies and Future Outlook

Valuation and Key Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (47.20%)

6. Segments

Internet Information Providers

Expected Growth: 47.2%

7. Detailed Products

Roblox Platform

Robux

Premium Subscription

Advertising

Roblox Studio

8. Roblox Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Roblox Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

96.28$

Current Price

96.28$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA