10-QPeriod: Q1 FY2026

Roblox Corp Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 30, 2026For Securities:RBLX

Summary

Roblox Corporation reported a significant increase in revenue for the first quarter of 2026, up 39% year-over-year to $1.44 billion. This growth was driven by higher bookings and an increased proportion of consumable virtual item revenue. The company also saw a substantial rise in average daily unique paying users, up from 1.2 million to 1.9 million. Despite revenue growth, Roblox continues to experience net losses, with a consolidated net loss of $248 million for the quarter. While operational costs increased across several categories, including developer exchange fees (up 50%), infrastructure and trust & safety (up 34%), and R&D (up 13%), the company's free cash flow remained robust, reaching $596 million. Significant legal settlement expenses of $57 million impacted general and administrative costs, which rose 76%. The company ended the quarter with a strong liquidity position, holding $6.2 billion in cash, cash equivalents, and short-term and long-term investments.

Financial Statements
Beta

Key Highlights

  • 1Revenue increased by 39% year-over-year to $1.44 billion in Q1 2026.
  • 2Average daily unique paying users grew to 1.9 million from 1.2 million in the prior year.
  • 3Developer exchange fees increased by 50% year-over-year, driven by growth in creator earnings and program changes.
  • 4Consolidated net loss was $248 million, a slight increase from $216 million in Q1 2025.
  • 5Free cash flow was strong at $596 million.
  • 6General and administrative expenses saw a significant increase of 76%, largely due to $57 million in legal settlement accruals.
  • 7The company ended the quarter with $6.2 billion in cash, cash equivalents, and investments.

Frequently Asked Questions

Roblox reported a 39% year-over-year increase in revenue for the first quarter of 2026, reaching $1.44 billion. This growth was primarily driven by higher bookings and an increase in the proportion of revenue recognized from consumable virtual items.

Roblox continues to incur net losses. For the three months ended March 31, 2026, the company reported a consolidated net loss of $248 million, compared to a net loss of $216 million in the same period of the prior year. Despite the net loss, the company generated strong free cash flow.

The substantial 76% increase in General and Administrative expenses was primarily due to $57 million in legal settlement accruals related to settlements and ongoing settlement negotiations with various states concerning youth-related consumer protection and digital safety matters. The increase also included higher professional services fees and personnel costs.

Roblox maintains a strong liquidity position, with cash, cash equivalents, and short-term and long-term investments totaling $6.2 billion as of March 31, 2026. This provides the company with ample resources for working capital, capital expenditures, and potential acquisitions.