Roblox Q3 Revenue Rises 16% as Bookings Fall 12% to $1.7 Billion

Roblox Corporation (RBLX ) reported third-quarter 2026 revenue of $1,572 million on October 29, 2026, up 16% from $1,360 million a year earlier, while bookings declined 12% year-over-year to $1,697 million from $1,922 million (all figures U.S. dollars), according to the company’s third-quarter 2026 shareholder letter. The company said bookings surpassed the high end of its guidance range and were up over 50% on a two-year basis, against what it described as difficult comparisons to its growth in 2025.

Consolidated net loss was $230 million, compared to $258 million in the third quarter of 2025, and net loss per share attributable to common stockholders was $0.32, compared to $0.37. Adjusted EBITDA was $138 million, compared to $46 million a year earlier. The company said Adjusted EBITDA excludes adjustments for changes in deferred revenue and deferred cost of revenue; the total change in net deferrals was $136 million, compared to $458 million in the prior-year period.

For the nine months ended September 30, 2026, revenue was $4,483 million versus $3,476 million a year earlier, and consolidated net loss was $663 million versus $754 million.

Engagement and Monetization

Daily active users averaged 138 million in the quarter, down 9% year-over-year and up 12% quarter-over-quarter. Hours engaged reached nearly 34 billion, down 15% year-over-year and up 17% quarter-over-quarter. The company said DAUs and Hours were up 55% and 63%, respectively, on a two-year basis.

The company said international growth outperformed the broader platform. DAUs grew 37% year-over-year in India, where Hours rose 28%, and 33% in Japan, where Hours rose 22%. DAUs also grew 30% in Saudi Arabia, 13% in Germany, and 12% in France.

Users aged 18 and over represented 29% of global age-checked DAUs and 37% of U.S. age-checked DAUs, up from 27% and 33% in the second quarter of 2026. The company said the over-18 group is its fastest-growing cohort and that U.S. over-18 users monetize at more than 50% above under-18 users. By the end of the quarter, 64% of global DAUs had completed an age check, including more than 80% of DAUs aged 13 to 17, and age-check penetration reached 80% in Australia and 75% in each of the United States and the United Kingdom. The company said its age-checked metrics are estimates derived from limited information and evolving methodologies and are not directly comparable to historical self-reported data.

Users sent an average of 1.6 billion in-game chat messages per day, up 13% quarter-over-quarter, and DAUs who sent a chat message or connected to voice grew 24% quarter-over-quarter.

Average monthly unique payers totaled 30 million, down 16% year-over-year, while average bookings per monthly unique payer rose 5% year-over-year. Bookings per engaged Hour grew approximately 4% year-over-year globally and 2% in the U.S. and Canada, which the company said marked an improvement relative to second-quarter trends.

Cost of revenue grew 7% year-over-year to $318 million, and the company said a rising share of bookings from lower-cost platforms lowered payment processing fees as a percentage of bookings. Developer Exchange fees declined 6% year-over-year to $403 million; the company said growth in those fees as a percentage of bookings reflects the creator-earnings increase announced September 5, 2025 and a targeted over-18 Developer Exchange rate increase effective June 8, 2026. Certain infrastructure and trust and safety expenses grew 24% to $258 million, driven by AI-related investments including AI training and inference costs, and personnel costs excluding stock-based compensation grew 12% to $281 million on higher headcount.

The Adjusted EBITDA reconciliation includes $49 million of legal settlement expenses related to settlements and settlement negotiations with certain states and territories over youth-related consumer protection and digital safety matters, which the company said arise outside the ordinary course of business.

Operating cash flow was $395 million, compared to $546 million a year earlier, and free cash flow was $364 million, compared to $443 million. The company said free cash flow reflected lower-than-expected capital expenditures, with a significant portion of spending shifted from the third quarter into the fourth. Total cash, cash equivalents, and investments were $6.2 billion as of September 30, 2026, up $1.0 billion year-over-year.

Roblox repurchased 4.4 million shares for approximately $200 million during the quarter, leaving approximately $2.4 billion of authorization remaining under its repurchase program. Fully diluted share count was 755 million, up 2% year-over-year.

The letter also detailed product initiatives, including the Roblox Plus subscription, which the company said launched in April and has scaled to millions of active subscribers, advertising formats such as Rewarded Video and Sponsored Tiles, and AI-assisted creation tools. The company said more than 80% of its top 100 games ranked by hours engaged used AI tools over the past month, and that more than 500,000 users have used Build, its prompt-to-game creation tool, since an alpha launch in New Zealand, Singapore, Serbia, and Thailand. It reiterated a long-term vision of capturing 10% of the global gaming market.

Fourth-Quarter 2026 Guidance

For the fourth quarter, Roblox forecast revenue of $1,470 million to $1,580 million, growth of 4% to 12% year-over-year, and bookings of $1,890 million to $2,000 million, a decline of 10% to 15%. The company said the bookings outlook assumes a seasonal decline in daily active users between the third and fourth quarters similar to recent years, and that it applied a slightly wider range given the significant proportion of bookings typically generated in the last week of December.

The company expects a consolidated net loss of $363 million to $423 million, excluding loss contingency accruals, and Adjusted EBITDA of negative $70 million to negative $10 million. Operating cash flow is forecast at $190 million to $275 million, with capital expenditures and purchases of intangible assets of $380 million, for free cash flow of negative $190 million to negative $105 million, a range the company said includes the capital-spending shift from the third quarter.

Roblox said revenue is expected to grow even as bookings decline because the vast majority of bookings are recognized as revenue over the estimated average lifetime of a paying user, which was 27 months in the third quarter, leaving fourth-quarter revenue with flow-through from elevated bookings throughout 2025.

Roblox scheduled its earnings Q&A conference call for October 29, 2026 at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time, according to the company’s investor relations announcement.