Roblox Guides Q3 Bookings Down 14-18%, Pulls Full-Year Outlook; Stock Drops 12%
RBLX is trading near its 52-week low of $40.15 (6.7% above the low) on elevated volume (2.2× avg).
Summary
Roblox's Q2 bookings missed at $1.56B (vs. $1.6B expected) and Q3 guidance was far worse: bookings down 14-18% to $1.58B-$1.65B, well below the $1.87B consensus. Revenue growth is slowing to 4-10% as platform changes prioritize safety and discovery over near-term monetization. The company also withdrew its full-year outlook, shifting to quarterly-only guidance earlier than planned. Shares fell 12% after-hours, adding to a 40% year-to-date decline. The weak forecast reflects declining per-hour monetization as younger users shift to lower-monetizing games and algorithm changes favor retention over immediate revenue. Additionally, Roblox's over-18 audience is outpacing younger cohorts in growth.
Updates
· Reuters — Shares fell nearly 30% on Friday, wiping out over $10 billion in market value, and Wedbush downgraded the stock to neutral, citing weakness in spending by users under 13.
· Dow Jones Newswires — Roblox's stock fell 14% after hours to $41.68, near its 52-week low, a larger decline than the 12% drop reported earlier.
At the time of this announcement, RBLX was trading at $42.83 on NYSE in the Technology sector, with a market capitalization of approximately $34.8B. The 52-week trading range was $40.15 to $150.59. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.