A maker of a global online gaming and creation platform where millions of users play, build, and share their own games and virtual worlds. Players use the virtual currency Robux to buy items and experiences, and creators earn Robux they can trade for real money. It was founded in 2004 by David Baszucki and Erik Cassel, who had earlier built physics-education software together. The name "Roblox" blends "robots" and "blocks," and the platform was nearly called "GoBlocks" or "DynaBlocks" before settling on its final name.
Bookings growth decelerated to 8% in Q2 2026 from 51% a year ago, while a $3.0B buyback was authorized.
growth slowed sharply to 8%, the lowest rate in the periods shown. rose 36% to $1.47 billion and widened to 80.1%, but the net loss was $183 million as and infrastructure costs continued to climb. The company authorized a $3.0 billion , signaling a shift in capital allocation even as it remains unprofitable.
Key takeaways
, the company's measure of current-period sales, rose only 8% to $1.56 billion, a deceleration from 51% growth in Q2 2025 and 39% in Q1 2026, as the increase in paying users that drove prior quarters moderated.
rose 36% to $1.47 billion, driven by the of built up in earlier periods, which masked the slowdown in current-period .
rose 15% to $364 million, outpacing the 8% growth, which the company attributed to a higher creator payout rate and the new Creator Rewards Program.
Section summaries
Management's Discussion and Analysis
Roblox Q2 2026 revenue rose 36% to $1.47B on higher bookings and deferred amortization, while net loss narrowed to $185M.
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grew 36% to $1.47B, driven by higher of prior and a 9% increase in daily unique paying users to 1.6M.
Infrastructure and trust & safety costs rose 39% to $363 million on higher data center and hosting expenses to support platform growth, the fastest increase since Q2 2022.
General and administrative expenses rose 31% to $199 million, including $34 million in legal settlement accruals for youth-related consumer protection matters.
The company authorized a $3.0 billion in May 2026 and repurchased $380 million of stock during the quarter, a new use of capital for a company with a $5.5 billion .
What changed
The 51% growth rate flagged in Q2 2025 as a potential peak did not sustain: bookings growth decelerated to 39% in Q1 2026 and then to 8% in Q2 2026, as the near-doubling of paying users that drove the prior year's acceleration normalized.
The 27-month estimated paying user lifetime, flagged repeatedly as a watch item, was not changed in Q2 2026, leaving the gap between and reported to narrow only through the natural of the existing deferred balance.
The $57 million legal settlement accrual in Q1 2026 was followed by an additional $34 million in Q2 2026, suggesting that youth-related consumer protection and digital safety matters are not a one-quarter item but a recurring cost pressure on G&A expenses.
continued to outpace growth for the seventh consecutive quarter, though the gap narrowed: the 15% increase in Q2 2026 compared to 8% bookings growth is a smaller spread than the 50% versus 39% spread in Q1 2026.
What to watch
Whether growth stabilizes near the 8% rate in Q3 2026 or decelerates further as comparisons tighten against the 70% growth in Q3 2025.
Whether the $3.0 billion signals a sustained return of capital to shareholders, and how much of the authorization is used in Q3 2026 given the company's ongoing net losses.
Whether the 27-month estimated paying user lifetime holds through Q3 2026, or whether a reduction pulls more forward and provides a one-time lift to reported revenue as growth slows.
Whether infrastructure and trust & safety cost growth moderates from the 39% rate in Q2 2026, or whether the data center and hosting investments needed to support the platform keep that expense line elevated.
increased 8% to $1.56B, but growth was outpaced by a 15% rise in due to a higher creator payout rate and the new Creator Rewards Program.
Infrastructure and trust & safety costs jumped 39% to $363M, primarily from increased data center and hosting expenses to support platform growth.
General and administrative expenses surged 31% to $199M, largely due to $34M in legal settlement accruals for youth-related consumer protection matters.
for the first half of 2026 was $890M, up from $604M a year ago, supported by a $401M increase in from current period .
The company authorized a $3.0B program in May 2026 and repurchased $380M of stock during the quarter.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk on debt securities is the primary market risk, with a 100 bps rise reducing fair values by ~$66M.
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A hypothetical 100 increase in interest rates would decrease the of the company's debt securities by approximately $66 million as of June 30, 2026.
The debt securities portfolio includes corporate debt, commercial paper, money market funds, U.S. Treasury, and U.S. agency securities.
The company does not use investments for trading or speculation; its policy prioritizes capital preservation and liquidity.
The $1.0 billion in 2030 Notes carry a fixed interest rate, so they pose no financial statement risk from rate changes, though their for disclosure will fluctuate.
There were no significant changes in foreign currency exchange or inflation risk exposures during the six months ended June 30, 2026.
This information is set forth under “Note 8 – Commitments and Contingencies – Legal Proceedings” to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q and is incorporated herein by reference. 47 Table of Contents
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This information is set forth under “Note 8 – Commitments and Contingencies – Legal Proceedings” to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q and is incorporated herein by reference.
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Table of Contents
Roblox faces intensifying global regulatory, safety, and competitive risks that threaten user growth, monetization, and profitability.
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Evolving global laws targeting child safety, content moderation, and platform design (e.g., UK OSA, EU DSA, Brazil Digital Statute) are forcing costly product changes and could restrict access in key markets.
Mandatory age-check systems implemented in January 2026 led to an unexpected decline in growth, and safety failures continue to generate negative publicity, regulatory scrutiny, and litigation.
The company remains deeply unprofitable with a $5.5 billion , and heavy reliance on viral hits and seasonal fourth-quarter makes financial results volatile and hard to predict.
Concentration of engagement in a few top games and dependence on Apple and Google for 40% of expose the business to platform-policy changes and creator .
Rapid integration of generative AI introduces new threats, including AI-powered attacks, flawed content generation, and compliance burdens under emerging laws like the EU AI Act.
International operations (82% of DAUs) face currency headwinds, weaker monetization abroad, and geopolitical risks including U.S.-China tensions affecting the China joint venture.