10-QPeriod: Q3 FY2025

Roblox Corp Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:RBLX

Summary

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 billion. 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 million 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 billion 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.

Financial Highlights

52 data points
Beta

Revenue

$1.36B

78.2% Gross Margin

Net Income

-$255.63M

-18.8% Net Margin

EPS (Diluted)

$-0.37

Total Assets

$8.59B

Cash & Equivalents

$1.02B

Free Cash Flow

$443.60M

Financial Statements
Beta
Revenue$1.36B
Cost of Revenue$296.46M
Gross Profit$1.06B
R&D Expenses$398.31M
Operating Expenses$1.66B
Operating Income-$296.54M
Net Income-$255.63M
EPS (Basic)$-0.37
EPS (Diluted)$-0.37
Shares Outstanding (Basic)697.28M
Shares Outstanding (Diluted)697.28M

Key Highlights

  • 1Revenue increased by 48% to $1.36 billion for the three months ended September 30, 2025, compared to the same period in 2024.
  • 2Average daily unique paying users more than doubled year-over-year, reaching approximately 2.25 million for the three months ended September 30, 2025.
  • 3Consolidated net loss widened to $257.4 million for the three months ended September 30, 2025, from $240.4 million in the prior year.
  • 4Developer exchange fees increased by 85% to $427.9 million, reflecting higher developer earnings due to increased bookings and program changes.
  • 5Cash and cash equivalents stood at $1.02 billion, with total cash equivalents and investments reaching $5.2 billion as of September 30, 2025.
  • 6Free cash flow for the nine months ended September 30, 2025, was $1.05 billion, demonstrating strong operational cash generation.

Frequently Asked Questions

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.

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.

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.

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.