Roblox Q2 Earnings Call Highlights

Roblox Q2 Earnings Call Highlights Written by MarketBeat July 31, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC. Key Points Roblox’s Q2 revenue grew 36% to $1.5 billion , while bookings rose 8% to $1.6 billion, near the low end of guidance. Daily active users increased 10% to 123 million, and free cash flow jumped 66% to $294 million. Bookings were pressured by younger users shifting to lower-monetizing games and discovery changes that favor long-term retention over near-term spending. Management expects retention gains to eventually offset the monetization decline, but gave no specific timeline. Roblox forecast Q3 bookings to decline 14%–18% year over year to $1.58 billion–$1.65 billion, citing difficult comparisons and continued monetization weakness. The company is also investing in safety, AI, adult-user growth and new products such as Build and Moments. Five stocks to consider instead of Roblox . Why These Three Big Buybacks Are Sending Very Different Signals to Investors Roblox NYSE: RBLX reported second-quarter 2026 revenue growth of 36% to $1.5 billion, while bookings rose 8% to $1.6 billion, landing at the low end of the company’s guidance range. Management said bookings fell short of its internal expectations primarily because younger users shifted toward games with lower hourly monetization and because changes to its recommendation system prioritized long-term retention over near-term spending. Daily active users increased 10% year over year to 123 million, while engagement hours rose 5% to 29 billion. Operating cash flow grew 60% to $318 million and free cash flow increased 66% to $294 million. Get Roblox alerts: Sign Up MarketBeat Week in Review – 05/04 - 05/08 “While bookings growth fell within our guidance range, it was below our internal goal,” Founder, President and CEO David Baszucki said. The company remains focused on its long-term objective of capturing 10% of the global gaming market and a greater share of the U.S. gaming market, he said. Monetization Miss Tied to Game Mix and Discovery Changes Chief Financial Officer Naveen Chopra said monetization, measured by bookings per hour, was below the company’s forecast, particularly among users under age 13. He attributed the shortfall to a greater-than-expected move away from high-monetizing viral games from 2025 toward a mix of newer and evergreen experiences with lower monetization per hour. Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook The effect was compounded by Roblox’s revised discovery algorithms, which are designed to recommend games based more directly on expected long-term retention. The changes provided more impressions to highly retentive experiences at the expense of games that may generate stronger near-term monetization, according to management. Chopra said internal testing indicates that better retention should eventually offset the initial bookings impact. In tests, the company has seen a relatively immediate improvement in retention and engagement hours, alongside an immediate reduction in dollars per hour. Roblox expects the benefits to exceed the monetization decline over time, though Chopra declined to provide a specific timeline. Baszucki said the company is aiming to encourage more “evergreen-type games” that keep players engaged over longer periods rather than experiences emphasizing short-term monetization. Roblox is also using age-check data to improve recommendation targeting by region and age cohort, which management believes could help mitigate the monetization pressure. Another, less significant contributor to the bookings shortfall was Roblox’s decision to disable sales of cross-experience game passes, Chopra said. Third-Quarter Bookings Forecast Calls for Decline For the third quarter, Roblox forecast bookings of $1.58 billion to $1.65 billion, representing a year-over-year decline of 14% to 18% because of difficult comparisons. The company expects daily active user trends to benefit ...