The following discussion and analysis of our financial condition, results of operations, and cash flows should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2025 included in our Annual Report on Form 10-K filed with the SEC (the “2025 Annual Report”). This discussion and analysis and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements, such as those relating to our plans, objectives, expectations, intentions, and beliefs, that involve risks, uncertainties, and assumptions. Our actual results could differ materially from these forward-looking statements as a result of many factors, including those discussed in the section titled “Risk Factors,” “Special Note Regarding Forward-Looking Statements,” and “Special Note Regarding Operating Metrics” included elsewhere in this Quarterly Report on Form 10-Q. Our historical results are not necessarily indicative of the results that may be expected for any periods in the future. Unless the context otherwise requires, all references in this report to “Roblox,” the “Company,” “we,” “our,” “us,” or similar terms refer to Roblox Corporation and its subsidiaries. Because certain reported amounts are rounded, the sum of the respective components reported for these amounts may not equal the total amount reported and the percentages presented may not add to their respective totals. Additionally, certain columns and rows may be presented as zero or not presented at all due to rounding to zero. Overview People from around the world come to Roblox every day to connect. Together they create, play, work, learn, and connect with each other in games built by our global community of creators. Roblox is powered by user-generated content and draws inspiration from gaming, entertainment, social media, and even toys. Our immersive gaming and creation Platform consists of the Roblox Client, the Roblox Studio, and the Roblox Cloud (collectively, the “Roblox Platform” or the “Platform”). Roblox Client is the free application that allows users to explore immersive games. Roblox Studio is the free toolset that allows creators to build, publish, and operate immersive games and other content accessed with the Roblox Client. Roblox Cloud includes the services and infrastructure that power our Platform. We are continually innovating our Platform by investing in high fidelity avatars, more realistic games, artificial intelligence (“AI”) tools, and other connection features. Our mission is to connect a billion users with optimism and civility. We are constantly improving the ways in which our Platform supports shared games, ranging from how these games are built by an engaged community of creators to how they are enjoyed and safely accessed by users across the globe. We also believe there is a strong potential to capture a greater percentage of the global gaming market within the Roblox ecosystem. Our goal is to make it as easy as possible for creators to build better and safer games, and ultimately reach more users. We continue to invest in creating tools for our creators designed to promote key game genres and deepen engagement on our Platform. Consistent with our free to use business model, a small portion of our users have historically been payers. For example, in the three months ended June 30, 2026, of our 123 million average Daily Active Users (“DAUs”), only approximately 1.6 million represented our average daily unique paying users. Similarly, in the three months ended June 30, 2026, our average daily bookings per DAU was $0.14, whereas our average daily bookings per daily unique paying user was $10.42. We believe that maintaining and growing our overall number of users, including the number of users who may not purchase and spend Robux, is important to the success of our business. As a result, we believe that the number of users who choose to purchase and spend Robux will continue to constitute a small portion of our overall users. We are constantly innovating our safety tools and launching new safeguards to promote a safe and enjoyable environment for our users. As our safety teams continue to innovate and use advancements in technology to help users feel safe on our Platform, we expect to continue to implement Platform policy, product, technology and other changes, including in anticipation of and in response to regulatory requirements and evolving guidance from leading global organizations focused on child and internet safety in the U.S. and abroad. We continue to develop, test, and implement new systems designed to age-check users prior to accessing chat on our Platform. In addition, we recently launched Roblox Kids and Roblox Select, which are age-based account types designed to provide children and younger teens with age-appropriate games and safety features. Our safety changes have impacted and may continue to impact engagement, retention, revenue, and bookings. Our primary areas of investment have been, and we expect will continue to be, our creator community, and the people, technology, and infrastructure, including our trust and safety systems, required to keep improving the Roblox Platform while maintaining and building a safe and civil digital community. These areas of focus are how we drive the business, and along with payment processing fees, represent our primary operating costs. 27 Table of Contents Key Metrics We believe our performance is dependent upon many factors, including the key metrics described below that we track and review to measure our performance, identify trends, formulate financial projections, and make strategic decisions. Operating Metrics We manage our business by tracking several operating metrics, including those outlined below. As a management team, we believe each of these operating metrics provides useful information to investors and others. For complete definitions and limitations of these metrics, refer to the section titled “Special Note Regarding Operating Metrics” of this Quarterly Report on Form 10-Q. Average Daily Active Users (“DAUs”) We define a DAU as a user who has logged in and visited Roblox through our website or application on a unique registered account on a given calendar day. If a registered, logged in user visits Roblox more than once within a 24-hour period that spans two calendar days, that user is counted as a DAU only for the first calendar day. We track DAUs as an indicator of the size of the audience engaged on our Platform. We believe that the long-term growth in DAUs reflects the increasing value of our Platform. 28 Table of Contents Hours Engaged We define hours engaged as the time spent by our users on the Platform. We calculate total hours engaged as the aggregate of user session lengths in a given period. We estimate this length of time using internal company systems that track user activity on our Platform as discrete events, and aggregate these discrete activities into a user session. A given user session on our Platform may include, among other things, time spent in games, in Roblox Studio, in Platform features such as chat and avatar personalization, in the Creator Store, and some amount of non-active time due to limits within the tracking systems and our estimation methodology. We believe that the long-term growth in hours engaged reflects the increasing value of our Platform. 29 Table of Contents Bookings Bookings is a non-GAAP financial measure and represents the sales activity in a given period without giving effect to certain non-cash adjustments. Bookings is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Refer to the section “Non-GAAP Financial Measures” below for further discussion on this measure, including its limitations. Below we also include revenue calculated in accordance with GAAP, the most directly comparable financial measure to bookings. Generally over time, as the content and functionality of our Platform improves and DAUs increase in tenure, hours engaged tend to go up. Similarly, we expect more users to become payers. Further, we expect growth in our payers and improvements in our products and strategy to lead to growth in revenue and bookings. Within any given period, the relative behavior of the metrics has not been, and will not always be, consistent. Additionally, engagement and monetization trends may vary depending on a wide variety of factors, including, but not limited to, the popularity and virality of certain games, the mix of users from different regions, and Platform changes. 30 Table of Contents Average Bookings per DAU (“ABPDAU”) We define ABPDAU as bookings in a given period divided by the DAUs for the same period. We use ABPDAU as a way to understand our monetization across our users. Refer to the section titled “Non-GAAP Financial Measures” for the definition of and discussion on bookings, including its limitations as a non-GAAP financial measure. 31 Table of Contents Average Monthly Unique Payers We define monthly unique payers as user accounts that made a payment on the Platform or redeemed a prepaid card during a given month. Average monthly unique payers for a specified period is the average of the monthly unique payers for each month during that period. We use this measure to understand our monetization across our payers. Average Bookings per Monthly Unique Payer We define average bookings per monthly unique payer as bookings in the specified period divided by the average monthly unique payers for the same specified period. We use this measure to understand our monetization across our payers through the sale of virtual currency and subscriptions. Refer to the section titled “Non-GAAP Financial Measures” for the definition of and discussion on bookings, including its limitations as a non-GAAP financial measure. Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we believe the following non-GAAP financial measures are useful in evaluating our performance: bookings, Adjusted EBITDA, and free cash flow. We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial information as a tool for comparison. As a result, our non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP. Reconciliation tables of the most comparable GAAP financial measure to each non-GAAP financial measure used in this Quarterly Report on Form 10-Q are included below. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measures. 32 Table of Contents Bookings Bookings represent the sales activity in a given period without giving effect to certain non-cash adjustments, as detailed below. Substantially all of our bookings are generated from sales of virtual currency, which can ultimately be converted to virtual items on the Roblox Platform. Sales of virtual currency reflected as bookings include one-time purchases or monthly subscriptions purchased via payment processors or through prepaid cards. Bookings are initially recorded in deferred revenue and recognized as revenues over the estimated period of time the virtual items purchased with the virtual currency are available on the Roblox Platform (estimated to be the average lifetime of a paying user) or as the virtual items purchased with the virtual currency are consumed. Bookings also include an insignificant amount from advertising and licensing arrangements. We believe bookings provide a timelier indication of trends in our operating results that are not necessarily reflected in our revenue as a result of the fact that we recognize the majority of revenue over the estimated average lifetime of a paying user. The change in deferred revenue constitutes the vast majority of the reconciling difference from revenue to bookings. By removing these non-cash adjustments, we are able to measure and monitor our business performance based on the timing of actual transactions with our users and the cash that is generated from these transactions. Over the long term, the factors impacting our revenue and bookings trends are the same. However, in the short term, there are factors that may cause revenue and bookings trends to differ. The following table presents a reconciliation of revenue, the most directly comparable financial measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Reconciliation of revenue to bookings: Revenue $ 1,469 $ 1,081 $ 2,911 $ 2,116 Add (deduct): Change in deferred revenue 99 365 398 543 Other (11) (8) (21) (14) Bookings $ 1,557 $ 1,438 $ 3,288 $ 2,645 33 Table of Contents Adjusted EBITDA Adjusted EBITDA represents our GAAP consolidated net loss, excluding interest income, interest expense, other (income)/expense, net, provision for/(benefit from) income taxes, depreciation and amortization expense, stock-based compensation expense, and certain other non-routine adjustments and differs from Covenant Adjusted EBITDA which is used in certain covenant calculations specified in the indenture governing our senior notes due 2030 (the “Indenture”). Refer to the section titled “Liquidity and Capital Resources” for the definition of and discussion on Covenant Adjusted EBITDA. We believe that, when considered together with reported GAAP amounts, Adjusted EBITDA is useful to investors and management in understanding our ongoing operations and operating trends. Our definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. The following table presents a reconciliation of consolidated net loss, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Reconciliation of consolidated net loss to Adjusted EBITDA: Consolidated net loss $ (185) $ (280) $ (433) $ (496) Add (deduct): Interest income (59) (49) (114) (95) Interest expense 10 11 20 21 Other (income)/expense, net 3 (5) 1 (9) Provision for/(benefit from) income taxes 2 1 3 2 Depreciation and amortization expense 65 54 126 108 Stock-based compensation expense 282 285 557 544 Legal settlement expenses(1) 34 — 91 — Other charges — 2 — 2 Adjusted EBITDA $ 152 $ 18 $ 251 $ 76 (1)Includes legal expenses related to settlements and settlement negotiations with certain states regarding youth-related consumer protection and digital safety matters. The Company has determined that these matters arise outside of the ordinary course of business, have limited historical precedent, are unpredictable in their magnitude, scope, and timing, and as a result are distinct from routine expenses incurred in ongoing operations. 34 Table of Contents Free cash flow Free cash flow represents the net cash and cash equivalents provided by operating activities, less purchases of property and equipment, and intangible assets acquired through asset acquisitions. We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides information to management and investors about the amount of net cash and cash equivalents generated from our core operations that, after the purchases of property and equipment, and intangible assets acquired through asset acquisitions, can be used for strategic initiatives. The following table presents a reconciliation of net cash and cash equivalents provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to free cash flow, for each of the periods presented (in millions): Six Months Ended June 30, 2026 2025 Reconciliation of net cash and cash equivalents provided by operating activities to free cash flow: Net cash and cash equivalents provided by operating activities $ 947 $ 643 Deduct: Acquisition of property and equipment (55) (40) Purchases of intangible assets (2) — Free cash flow $ 890 $ 604 Acquisition of property and equipment primarily includes leasehold improvements related to our leased office spaces and data centers, servers, infrastructure equipment, and capitalized software licenses. Components of Results of Operations Revenue We generate substantially all of our revenue through the sale of or access to virtual items to users, enabling them to enhance their experience on the Roblox Platform. We recognize revenue over the estimated period of time the virtual items are available to the user on the Roblox Platform (estimated average lifetime of a paying user) which we refer to as durable virtual revenue, or at the time the virtual item is consumed, which we refer to as consumable revenue. We expect the mix of durable and consumable revenues to fluctuate based on user purchasing preferences, the variety of virtual content being offered by creators, and seasonal variations, amongst other factors, with higher consumable virtual item purchases resulting in higher revenue from bookings generated in the same period. The estimated average lifetime of a paying user is calculated based on the monthly retention data for each paying user cohort. We then calculate the average retention period by determining the weighted-average period paying users have spent on the Platform and are projected to participate on the Roblox Platform. Other revenue streams include an insignificant amount of revenue from advertising and licensing arrangements. We plan to invest in and expand our advertising business for the foreseeable future. All of our revenue is recorded net of taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our users, and estimated chargebacks and refunds. Costs and expenses We allocate shared costs, such as certain facilities (including rent and depreciation on equipment and leasehold improvements shared by all departments), software costs, and certain other operating expenses, to all departments based on headcount. As such, allocated shared costs are reflected in each expense category, with the exception of cost of revenue and developer exchange fees expense. Personnel costs generally include employee expenses (salaries, benefits, and stock-based compensation expense) and contractor expenses, and are reflected in each expense category, with the exception of cost of revenue and developer exchange fees. In the three and six months ended June 30, 2026, personnel costs were $565 million and $1,130 million, respectively, and during the three and six months ended June 30, 2025, were $530 million and $1,027 million, respectively. 35 Table of Contents Cost of revenue Cost of revenue primarily consists of third-party payment processing fees charged by the various distribution channels in connection with sales of our virtual currency. We initially defer payment processing fees and recognize them as expense over the same period as the respective revenue. Cost of revenue also includes sales tax expense for jurisdictions where the Company does not collect sales tax from the purchaser at the time of the sale and costs associated with the printing of prepaid cards. Cost of revenue as a percentage of revenue is affected by shifts in user purchasing preferences and trends, including those influenced by Robux offerings made by the Company, such as differential Robux pricing. Differential Robux pricing offers more Robux for users purchasing Robux through payment processing channels with lower transaction processing fees. Since the introduction of differential Robux pricing, we have seen some shift of our sales towards distribution channels with lower transaction processing fees, such as desktop and prepaid cards. In the future, we expect the overall distribution channel mix to shift based on user purchasing preferences, including those influenced by Robux offerings made by the Company, demographics, and seasonal variations. Developer exchange fees Developer exchange fees expense represent the fiat currency amount that qualified and registered creators in the Developer Exchange Program are eligible to be paid. Creators that qualify for our Developer Exchange Program are eligible to be paid fiat currency by Roblox based on the amount of earned Robux the creator has accumulated through the Platform. Creators must meet certain conditions, such as having accumulated the minimum amount of earned Robux required to qualify for the program, and having a verified creator account in good standing to be eligible to participate in our Developer Exchange Program. Creators can accumulate earned Robux by monetizing a developed game, IP licensing, creating and selling avatar items, or creating and selling Roblox Studio plugins. Through July 23, 2025, creators were also able to accumulate earned Robux through our Engagement-Based Payouts (“EBP”) Program which allowed creators to accumulate earned Robux based on the share of time that Roblox Premium subscribers engaged in their game. Beginning July 24, 2025, our EBP Program was replaced by our Creator Rewards Program that allows creators who publish games to accumulate earned Robux based on the achievement of various metrics that we believe drive user engagement and monetization supporting the long-term health of our Platform. We expect that moving forward, the aggregate developer exchange fee expense related to the Creator Rewards Program will exceed the aggregate developer exchange fee expense related to the legacy EBP Program. On January 31, 2022, we reduced the minimum amount of earned Robux required to qualify for the Developer Exchange Program from 100,000 Robux to 50,000 Robux and subsequently on January 31, 2023, we further reduced the minimum requirement from 50,000 Robux to 30,000 Robux. We believe these reductions in the minimum amounts required incentivize our creator community, while promoting its long-term growth and health. As of June 30, 2026, over 42,000 creators qualified for and were registered in our Developer Exchange Program. We continue to focus on increasing creator earnings by (i) creating new earnings methods and enhancing existing ones and (ii) passing on efficiencies realized in other areas of our business. For example, beginning September 5, 2025 and applying prospectively, we increased the amount creators can receive in fiat currency based on earned Robux by 8.5%. Furthermore, beginning June 8, 2026 and applying prospectively, we increased our Developer Exchange rate by 42% for eligible in-game spend generated by age-checked U.S. users 18 or older to further incentivize creation of novel games. Infrastructure and trust & safety Infrastructure and trust & safety expenses consist primarily of expenses related to the operation of our data centers and technical infrastructure. These costs include third-party service provider costs, such as cloud computing or other hosting and data storage, facilities-related expenses for our co-located data centers and edge data centers that we lease and operate, and network and bandwidth costs, as well as depreciation and associated support and maintenance costs of our servers and infrastructure equipment. Depreciation and amortization expense related to infrastructure and trust & safety in the three and six months ended June 30, 2026 was $58 million and $112 million, respectively, and in the three and six months ended June 30, 2025 was $44 million and $88 million, respectively. 36 Table of Contents We plan to continue increasing the capacity, capability, and reliability of our infrastructure to support more sophisticated content, more users, and increased engagement. In fiscal year 2023, we invested heavily in our infrastructure, and as a result, were able to moderate our investment in infrastructure throughout fiscal year 2024 and into the first quarter of 2025. Since that time, our investment in infrastructure has grown to meet the demands of continued Platform growth. Over the long term, we expect to increase our investment to support our global infrastructure. We intend to achieve scalability by building and maintaining our own technical infrastructure, while generating operating leverage over the long term. Infrastructure and trust & safety expenses also include personnel costs, moderation and customer support related costs, and allocated overhead expenses. We have been and expect to continue investing in AI and automation to increase the accuracy and efficiency of our safety moderation and customer support related efforts, which has increased the quality of our safety and civility systems and led to a decrease in safety moderation and customer support costs in recent periods. Research and development Research and development expenses consist primarily of personnel costs and allocated overhead expenses for our engineering, design, product management, data science, and other employees engaged in maintaining and enhancing the functionality of the Platform. We plan to increase research and development expenses for the foreseeable future primarily driven by increased headcount to develop new features, functionality, and innovation of our Platform. General and administrative General and administrative expenses consist primarily of personnel costs and allocated overhead for our finance and accounting, legal, human resources, talent acquisition, and other administrative teams. General and administrative expenses also include professional services fees such as outside legal, accounting, audit, outsourcing services, and other corporate expenses, as well as certain accruals and settlements associated with legal proceedings. We generally expect general and administrative expenses to increase for the foreseeable future, primarily to support the growth and increasing complexity of our business. Sales and marketing Sales and marketing expenses consist primarily of personnel costs and allocated overhead for our marketing, business development, brand partnerships, and developer relations functions, as well as user acquisition expenses. Other expenses include those associated with market research, branding, public relations, and developer relations programs, including our annual Roblox Developer Conference. We plan to increase our sales and marketing expenses for the foreseeable future, primarily to support the growth of our business. Interest income Interest income consists primarily of interest earned and accretion/(amortization) of our short-term investments, long-term investments, and cash equivalents. Interest expense Interest expense consists primarily of contractual interest and amortization of debt issuance costs on our 3.875% Senior Notes due 2030 (the “2030 Notes”). Other income/(expense), net Other income/(expense), net primarily includes foreign currency exchange gains/(losses) and realized gains/(losses) on our short-term and long-term investments. Provision for/(benefit from) income taxes Provision for/(benefit from) income taxes consists primarily of income taxes in foreign jurisdictions and U.S. federal and state income taxes. We maintain a full valuation allowance on our federal, state, and certain foreign deferred tax assets as we have concluded that it is not likely that the deferred assets will be utilized. 37 Table of Contents Results of Operations The following tables set forth our results of operations for the periods presented in dollars and as a percentage of our revenue for each period presented (in millions, except number of shares which are reflected in thousands, per share data, and percentages): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 1,469 100 % $ 1,081 100 % $ 2,911 100 % $ 2,116 100 % Costs and expenses: Cost of revenue(1) 292 20 236 22 586 20 461 22 Developer exchange fees 363 25 316 29 786 27 598 28 Infrastructure and trust & safety 363 25 261 24 687 24 503 23 Research and development 420 29 385 36 842 29 759 36 General and administrative 199 14 152 14 408 14 271 13 Sales and marketing 61 4 53 5 125 4 101 5 Total costs and expenses 1,698 116 1,403 130 3,434 118 2,693 127 Loss from operations (229) (16) (322) (30) (523) (18) (577) (27) Interest income 59 4 49 5 114 4 95 5 Interest expense (10) (1) (11) (1) (20) (1) (21) (1) Other income/(expense), net (3) — 5 — (1) — 9 — Loss before income taxes (183) (12) (279) (26) (430) (15) (494) (23) Provision for/(benefit from) income taxes 2 — 1 — 3 — 2 — Consolidated net loss (185) (13) (280) (26) (433) (15) (496) (23) Net loss attributable to noncontrolling interest(2) (2) — (2) — (4) — (3) — Net loss attributable to common stockholders $ (183) (12) % $ (278) (26) % $ (429) (15) % $ (493) (23) % Net loss per share attributable to common stockholders, basic and diluted $ (0.26) $ (0.41) $ (0.60) $ (0.73) Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted 716,767 684,837 714,246 678,307 (1)Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety. (2)Our condensed consolidated financial statements include our majority-owned subsidiary Roblox China Holding Corp. The ownership interest of a minority investor, Songhua River Investment Limited, is recorded as a noncontrolling interest. 38 Table of Contents Comparison of the Three and Six Months Ended June 30, 2026 and 2025 Revenue Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) Revenue $ 1,469 $ 1,081 36 % $ 2,911 $ 2,116 38 % Revenue increased $388 million, or 36%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is primarily due to a higher amortization of prior period deferred revenue and an increase in revenue recognized from current period bookings. The increase in revenue recognized from current period bookings was driven by an increase in bookings. The increase in revenue is partially offset by a decrease in consumable virtual item-related revenue, which accounted for 9% of virtual-item related revenue during the three months ended June 30, 2026 as compared to 10% in the three months ended June 30, 2025. The increase in bookings during the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily driven by a higher average number of daily unique paying users during the current period, which increased to approximately 1.6 million during the three months ended June 30, 2026 from approximately 1.5 million during the three months ended June 30, 2025. The average number of daily unique paying users represents the number of user accounts that made a payment on the Platform, including redemption of prepaid cards for Robux, on an average daily basis during the respective period. Revenue increased $795 million, or 38%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase is primarily due to a higher amortization of prior period deferred revenue and an increase in revenue recognized from current period bookings. The increase in revenue recognized from current period bookings was driven by an increase in bookings, coupled with an increase in consumable virtual item-related revenue, which accounted for 10% of virtual-item related revenue during the six months ended June 30, 2026, as compared to 9% in the six months ended June 30, 2025. The increase in bookings during the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by a higher average number of daily unique paying users during the current period, which increased to approximately 1.8 million during the six months ended June 30, 2026 from approximately 1.4 million during the six months ended June 30, 2025. Cost of revenue Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) Cost of revenue $ 292 $ 236 24 % $ 586 $ 461 27 % Cost of revenue increased $56 million, or 24%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is primarily due to an increase of $64 million in expense associated with payment processing fees, largely from higher amortization of prior period payment processing fees and an increase in expense associated with current period payment processing fees driven by the related growth in bookings. The increase in cost of revenue recognized from current period payment processing fees was partially offset by the aforementioned decrease in consumable virtual item-related revenue, as the payment processing fees are expensed over the same period as the respective revenue. This increase was also partially offset by a mix shift toward payment processors with lower payment processing fees. Cost of revenue increased $125 million, or 27%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase is primarily due to an increase of $135 million in expense for payment processing fees, largely from higher amortization of prior period payment processing fees and an increase in expense associated with current period payment processing fees driven by the related growth in bookings. The increase in cost of revenue recognized from current period payment processing fees was also driven by the aforementioned increase in consumable virtual item-related revenue, as the payment processing fees are expensed over the same period as the respective revenue. This increase was partially offset by a mix shift toward payment processors with lower payment processing fees. 39 Table of Contents Developer exchange fees Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) Developer exchange fees $ 363 $ 316 15 % $ 786 $ 598 31 % Developer exchange fees increased $47 million, or 15%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is primarily driven by an increase in amounts earned by creators due to the growth in bookings over the same period. The growth in developer exchange fees exceeded the growth in bookings, primarily driven by an 8.5% increase in the amount creators in our Developer Exchange Program can receive in fiat currency based on earned Robux accumulated, prospectively from September 5, 2025 onwards, and the launch of Creator Rewards in July 2025, which generated higher expense than our legacy EBP program in the prior period. Developer exchange fees increased $188 million, or 31%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase is primarily driven by an increase in amounts earned by creators due to the growth in bookings over the same period. The growth in developer exchange fees exceeded the growth in bookings, primarily driven by the aforementioned 8.5% increase in the amount creators in our Developer Exchange Program can receive in fiat currency based on earned Robux accumulated and launch of Creator Rewards in July 2025, which generated higher expense than our legacy EBP program in the prior period. Infrastructure and trust & safety Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) Infrastructure and trust & safety $ 363 $ 261 39 % $ 687 $ 503 37 % Infrastructure and trust & safety expenses increased $102 million, or 39%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is primarily driven by an increase of $76 million related to data center and technical infrastructure expenses (including depreciation and amortization) and hosting costs associated with providing the Platform to our users. The increase was supplemented by an increase of $15 million in trust & safety-related marketing expenses. Additionally, personnel costs increased by $5 million, primarily due to an increase in headcount. Infrastructure and trust & safety expenses increased $184 million, or 37%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase is primarily due to an increase of $142 million related to data center and technical infrastructure expenses (including depreciation and amortization) associated with providing the Platform to our users. The increase was supplemented by an increase of $19 million in trust & safety-related marketing expenses. Additionally, personnel costs increased by $14 million, primarily due to an increase in headcount. Research and development Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) Research and development $ 420 $ 385 9 % $ 842 $ 759 11 % Research and development expenses increased $35 million, or 9%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is primarily due to an increase of $33 million in personnel costs, which includes an increase of $6 million in stock-based compensation expense, primarily due to growth in headcount supporting our engineering, design, and product teams. Research and development expenses increased $83 million, or 11%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase is primarily due to an increase of $81 million in personnel costs, which includes an increase of $21 million in stock-based compensation expense, primarily due to growth in headcount supporting our engineering, design, and product teams. 40 Table of Contents General and administrative Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) General and administrative $ 199 $ 152 31 % $ 408 $ 271 51 % General and administrative expenses increased $47 million, or 31%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is primarily due to $34 million in legal settlement accruals related to settlements and settlement negotiations with various states regarding youth-related consumer protection and digital safety matters. The increase also includes an increase of $18 million in professional services, primarily from legal fees associated with ongoing litigation and investigations. General and administrative expenses increased $137 million, or 51%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase is primarily due to $91 million in legal settlement accruals related to settlements and settlement negotiations with various states regarding youth-related consumer protection and digital safety matters. The increase also includes an increase of $33 million in professional services-related expense, primarily from legal fees associated with ongoing litigation and investigations. Sales and marketing Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) Sales and marketing $ 61 $ 53 15 % $ 125 $ 101 24 % Sales and marketing expenses increased $8 million, or 15%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase is primarily due to an increase of $4 million in advertising and promotional expenses, and an increase of $3 million in personnel costs, primarily due to growth in headcount. Sales and marketing expenses increased $24 million, or 24%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase is primarily due to an increase of $17 million in advertising and promotional expenses, and an increase of $4 million in personnel costs, primarily due to continued growth in headcount. Interest income, interest expense, other income/(expense), net, and provision for/(benefit from) income taxes Three Months EndedJune 30, Year-Over-Year Six Months EndedJune 30, Year-Over-Year 2026 2025 % Change 2026 2025 % Change (dollars in millions) (dollars in millions) Interest income $ 59 $ 49 20 % $ 114 $ 95 20 % Interest expense $ (10) $ (11) (9) % $ (20) $ (21) (5) % Other income/(expense), net $ (3) $ 5 NM $ (1) $ 9 NM Provision for/(benefit from) income taxes $ 2 $ 1 100 % $ 3 $ 2 50 % Interest income increased $10 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and increased $19 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase for both periods was primarily due to higher average investments in debt securities, partially offset by lower average interest rates. Other income/(expense), net changed by $8 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and changed by $10 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The change for both periods was primarily driven by changes in foreign currency exchange gains/(losses). Interest expense and provision for/(benefit from) income taxes were relatively flat (in terms of amount) for the three and six months ended June 30, 2026 compared to the same periods of the prior year. 41 Table of Contents Liquidity and Capital Resources As of June 30, 2026 and December 31, 2025, our principal sources of liquidity were cash and cash equivalents and short-term and long-term investments of $6.1 billion and $5.5 billion, respectively, which were primarily held for working capital purposes, capital expenditures, share repurchases, and acquisitions. Our investment policy and strategy are focused on the preservation of capital and supporting our liquidity requirements. We do not enter into investments for trading or speculative purposes. Since our inception, we have financed our operations primarily through cash generated from operations and, to a lesser extent, sales of convertible preferred stock, borrowings under our credit facilities, and the sale of our 2030 Notes. We require payment upfront for substantially all of our bookings. On October 29, 2021, we issued the 2030 Notes, which will mature on May 1, 2030, unless earlier repurchased or redeemed. Interest is payable semi-annually in arrears on May 1 and November 1 of each year, commencing on May 1, 2022. The net proceeds from the 2030 Notes issuance were approximately $988 million and we intend to use the net proceeds for general corporate purposes, which may include working capital purposes, capital expenditures, share repurchases, and acquisitions. The 2030 Notes are unsecured obligations and the Indenture contains covenants limiting the Company and its subsidiaries’ ability to: (i) create certain liens and enter into sale and lease-back transactions; (ii) create, assume, incur, or guarantee indebtedness; or (iii) consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of the Company and its subsidiaries’ assets to another person, all of which are limited to amounts not to exceed the greater of $4.0 billion and 3.5x “Consolidated EBITDA” (as defined in the Indenture and referred to as “Covenant Adjusted EBITDA” throughout this section). Non-compliance with these covenants may result in the acceleration of repayment of the 2030 Notes and any accrued and unpaid interest. Accordingly, the Company presents Covenant Adjusted EBITDA calculated in accordance with “Consolidated EBITDA” as that term is defined in the Indenture, which is not calculated in accordance with GAAP and may not conform to the calculation of Adjusted EBITDA by other companies. Covenant Adjusted EBITDA should not be considered as a substitute for a measure of our financial performance or other liquidity measures prepared in accordance with GAAP and is also not indicative of income or loss calculated in accordance with GAAP. Management believes that this calculation is useful to investors for purposes of analyzing our compliance with certain covenants specified in the Indenture. The following table presents the calculation of Covenant Adjusted EBITDA in accordance with the terms of the Indenture, for each of the periods presented (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Calculation of Covenant Adjusted EBITDA: Consolidated net loss $ (185) $ (280) $ (433) $ (496) Add (deduct): Interest income (59) (49) (114) (95) Interest expense 10 11 20 21 Other (income)/expense, net 3 (5) 1 (9) Provision for/(benefit from) income taxes 2 1 3 2 Depreciation and amortization expense 65 54 126 108 Stock-based compensation expense 282 285 557 544 Legal settlement expenses(1) 34 — 91 — Other charges — 2 — 2 Change in deferred revenue 99 365 398 543 Change in deferred cost of revenue 9 (64) (23) (95) Covenant Adjusted EBITDA $ 260 $ 319 $ 626 $ 524 (1)Includes legal expenses related to settlements and settlement negotiations with certain states regarding youth-related consumer protection and digital safety matters. The Company has determined that these matters arise outside of the ordinary course of business, have limited historical precedent, are unpredictable in their magnitude, scope, and timing, and as a result are distinct from routine expenses incurred in ongoing operations. 42 Table of Contents As of June 30, 2026, contractual obligations related to the 2030 Notes are remaining payments of $19 million in 2026, $39 million each year from 2027 through 2029, and $1.0 billion due in 2030. These amounts represent principal and interest cash payments over the term of the 2030 Notes based on the stated maturity date. Any future redemption of the 2030 Notes could impact the amount or timing of our cash payments. For more information regarding the 2030 Notes, refer to Note 7, “Debt” to the notes to condensed consolidated financial statements. For all periods presented, we have generated losses from our operations and positive cash flows from operating activities. A substantial source of our net cash and cash equivalents provided by operating activities is our deferred revenue, which is included in our condensed consolidated balance sheets as a liability. Deferred revenue consists of the unearned portion of bookings for which we have not yet satisfied our performance obligations. Our deferred revenue obligation is recognized as revenue over the estimated average lifetime of a paying user or as the virtual items are consumed. In May 2026, our Board of Directors authorized a share repurchase program for up to $3.0 billion of our Class A common stock. During the three months ended June 30, 2026, we repurchased and subsequently retired 8.2 million shares of our Class A common stock for an aggregate amount of $380 million. Although we intend to repurchase up to $1.0 billion over the first 12 months of the program, the ultimate timing, manner, price, and amount of any repurchases will be determined by us at our discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. The program may also be suspended or discontinued at any time, and does not obligate us to repurchase any amount of Class A common stock. Refer to Note 9, “Stockholders’ Equity” in the notes to condensed consolidated financial statements, and “Purchases of Equity Securities by the Issuer and Affiliated Purchasers” included in Part II, Item 2 of this Quarterly Report on Form 10-Q for further details. We also expect to continue making investments in our business, including, but not limited to, capital expenditures related to our technology infrastructure. We believe our existing cash and cash equivalents and short-term investments, together with expected cash to be provided by future operations, will be sufficient to meet our needs for the next 12 months. Our future capital requirements, however, will depend on many factors, including our growth rate, investment in our headcount, capital expenditures to build out new facilities and purchase hardware for infrastructure, timing and extent of spending to support our efforts to develop our Platform, amongst other factors. We may in the future enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. In the event that additional financing is required from outside sources, we may seek to raise additional funds at any time through equity, equity-linked arrangements, or debt. If we are unable to raise additional capital when desired and on favorable terms, our business, results of operations, and financial condition would be adversely affected. See the section titled “Risk Factors” for more information. Cash Flows The following table summarizes our cash flows for the periods presented (in millions): Six Months Ended June 30, 2026 2025 Condensed Consolidated Statements of Cash Flow Data: Net cash and cash equivalents provided by operating activities $ 947 $ 643 Net cash and cash equivalents used in investing activities $ (817) $ (430) Net cash and cash equivalents provided by (used in) financing activities $ (341) $ 64 Operating activities Our largest source of operating cash is cash collection from sales of Robux and monthly subscriptions. Our primary uses of net cash and cash equivalents for operating activities are for payment processing fees, personnel-related expenses, data center and infrastructure-related operations, developer exchange fees, and other operating expenses. During the six months ended June 30, 2026, net cash and cash equivalents provided by operating activities was $947 million, which consisted of consolidated net loss of $433 million, adjusted by non-cash charges of $715 million and net cash inflows from the change in net operating assets and liabilities of $665 million. The non-cash charges were primarily comprised of stock-based compensation expense of $557 million and depreciation and amortization expense of $126 million. The net cash and cash equivalents inflow from the change in our net operating assets and liabilities was primarily due to a $407 million decrease in accounts receivable due to the timing of collection of prior period bookings and a $401 million increase in deferred revenue, primarily due to bookings generated in the current period. The overall increase was offset by a $75 million decrease in our developer exchange liability, primarily driven by the timing of payments, and a $72 million decrease in our operating lease liabilities, driven by lease payments. 43 Table of Contents Investing activities During the six months ended June 30, 2026, net cash and cash equivalents used in investing activities was $817 million, primarily consisting of $757 million of investment purchases – net of sales and maturities, and capital expenditures of $55 million. Financing activities During the six months ended June 30, 2026, net cash and cash equivalents used in financing activities was $341 million, driven by settled repurchases of common stock of $375 million, partially offset by proceeds from the exercise of stock options and purchase of shares under our employee stock purchase plan of $34 million. Off-Balance Sheet Arrangements We have letters of credit primarily in connection with our office facilities in San Mateo, California and data center facilities in Ashburn, Virginia and Chicago, Illinois which are not reflected in our condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025. There have been no material changes to our letters of credit during the six months ended June 30, 2026. We did not have any relationships with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other purposes. Contractual Obligations and Commitments Contractual commitments include obligations under operating leases for office facilities and data center operations. There have been no material changes to the nature of our operating lease commitments during the six months ended June 30, 2026, except for lease commitments primarily related to office facilities and space for data center operations in the ordinary course of business. Other purchase obligations primarily consist of non-cancellable obligations with our data center hosting providers, software vendors, and payment processors. There have been no material changes in our purchase obligations during the six months ended June 30, 2026, other than for non-cancellable obligations primarily related to data center hosting providers, software vendors, and payment processors in the ordinary course of business. Refer to Note 8, “Commitments and Contingencies” in the notes to condensed consolidated financial statements for additional information regarding our contractual commitments. See our 2025 Annual Report for additional information regarding our contractual commitments. Contingencies We are and, from time to time may in the future become, involved in legal proceedings, claims, and litigation. Discussion of legal matters and contingencies can be referred to under Item 1, “Note 8 – Commitments and Contingencies – Legal Proceedings” to the condensed consolidated financial statements. Critical Accounting Policies and Estimates The preparation of these condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts in our condensed consolidated financial statements and related notes. Our estimates are based on various factors that we believe are reasonable. Actual results may differ from these estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows will be affected. An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the condensed consolidated financial statements. There have been no material changes to our critical accounting policies and estimates as compared to those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our 2025 Annual Report. Recent Accounting Pronouncements See Note 2, “Basis of Presentation and Summary of Significant Accounting Policies” to the notes to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of recent accounting pronouncements. 44 Table of Contents