01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Roblox Corporation's (RBLX) Q3 2025 filing shows continued revenue growth, with a 48% increase year-over-year for the three months ended September 30, 2025, reaching $1.36 billiona.
This growth was driven by an increase in bookings and a notable shift towards consumable virtual items, which now account for 22% of virtual item-related revenue. The company also reported a significant increase in average daily unique paying users, more than doubling year-over-year, contributing to higher bookings. Despite revenue growth, Roblox continued to experience a net loss, reporting a consolidated net loss of $257.4 millionb for the quarter, an increase from the prior year's loss of $240.4 million.
This widened loss is largely attributable to increased operating expenses, particularly in developer exchange fees, infrastructure, and R&D. The company's cash position remains strong, with $1.02 billionc in cash and cash equivalents and $5.2 billion in total cash equivalents and investments as of September 30, 2025. Free cash flow for the nine months ended September 30, 2025, was robust at $1.05 billion.
02—Key points
Key Highlights
- Revenue increased by 48% to $1.36 billion for the three months ended September 30, 2025, compared to the same period in 2024.
- Average daily unique paying users more than doubled year-over-year, reaching approximately 2.25 million for the three months ended September 30, 2025.
- Consolidated net loss widened to $257.4 million for the three months ended September 30, 2025, from $240.4 million in the prior year.
- Developer exchange fees increased by 85% to $427.9 million, reflecting higher developer earnings due to increased bookings and program changes.
- Cash and cash equivalents stood at $1.02 billion, with total cash equivalents and investments reaching $5.2 billion as of September 30, 2025.
- Free cash flow for the nine months ended September 30, 2025, was $1.05 billion, demonstrating strong operational cash generation.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2025, Roblox Corp lost $0.19.
- Revenue$1.36B100.0%
- Cost of revenue−$296.5M21.8%
- Gross profit$1.06B78.2%
- Operating costs−$1.36B100.0%
- Operating income−$296.5M21.8%
- Interest, other & tax$40.9M3.0%
- Net income−$255.6M18.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.36B$918.95M | +48.0% |
| Cost of Revenue | $296.46M$205.00M | +44.6% |
| Gross Profit | $1.06B$713.96M | +48.9% |
| R&D Expenses | $398.31M$365.42M | +9.0% |
| Operating Expenses | $1.66B$1.20B | +38.3% |
| Operating Income | -$296.54M-$278.93M | −6.3% |
| Net Income | -$255.63M-$239.32M | −6.8% |
| EPS (Basic) | $-0.37$-0.37 | 0.0% |
| EPS (Diluted) | $-0.37$-0.37 | 0.0% |
| Shares Outstanding (Basic) | 697.28M650.96M | +7.1% |
| Shares Outstanding (Diluted) | 697.28M650.96M | +7.1% |
05—Questions
Frequently Asked Questions
What was Roblox's revenue performance in Q3 2025?
Roblox reported a significant revenue increase of 48% year-over-year, reaching $1.36 billion for the three months ended September 30, 2025. This growth was driven by an increase in bookings and a higher proportion of revenue from consumable virtual items.
Did Roblox become profitable in Q3 2025?
No, Roblox continued to incur a net loss in Q3 2025, reporting a consolidated net loss of $257.4 million, which was a slight increase compared to the $240.4 million loss in the same period of the previous year. This was due to increased operating expenses, particularly in developer exchange fees and R&D.
How is Roblox managing its cash and investments?
Roblox maintains a strong liquidity position, with $1.02 billion in cash and cash equivalents and $5.2 billion in total cash equivalents and investments as of September 30, 2025. The company generated $1.05 billion in free cash flow for the first nine months of 2025, indicating robust operational cash generation.
What is driving the increase in developer exchange fees?
Developer exchange fees saw a substantial increase of 85% year-over-year. This rise is primarily attributed to the growth in bookings, changes in the developer programs like the new Creator Rewards program, differential Robux pricing, and an increase in the exchange rate for earned Robux to fiat currency.
06—Continue