01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Roblox Corporation reported a significant increase in revenue for the first quarter of 2026, up 39% year-over-year to $1.44 billiona.
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 millionb 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 millionc. 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.
02—Key points
Key Highlights
- Revenue increased by 39% year-over-year to $1.44 billion in Q1 2026.
- Average daily unique paying users grew to 1.9 million from 1.2 million in the prior year.
- Developer exchange fees increased by 50% year-over-year, driven by growth in creator earnings and program changes.
- Consolidated net loss was $248 million, a slight increase from $216 million in Q1 2025.
- Free cash flow was strong at $596 million.
- General and administrative expenses saw a significant increase of 76%, largely due to $57 million in legal settlement accruals.
- The company ended the quarter with $6.2 billion in cash, cash equivalents, and investments.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, Roblox lost $0.17.
- Revenue$1.44B100.0%
- Cost of revenue−$294.0M20.4%
- Gross profit$1.15B79.6%
- Operating costs−$1.44B100.0%
- Operating income−$294.0M20.4%
- Interest, other & tax$48.0M3.3%
- Net income−$246.0M17.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.44B$1.03B | +39.3% |
| Cost of Revenue | $294.00M$225.00M | +30.7% |
| Gross Profit | $1.15B$810.00M | +41.7% |
| R&D Expenses | $422.00M$374.00M | +12.8% |
| Operating Expenses | $1.74B$1.29B | +34.6% |
| Operating Income | -$294.00M-$255.00M | −15.3% |
| Net Income | -$246.00M-$215.00M | −14.4% |
| EPS (Basic) | $-0.35$-0.32 | −9.4% |
| EPS (Diluted) | $-0.35$-0.32 | −9.4% |
| Shares Outstanding (Basic) | 711.70M671.66M | +6.0% |
| Shares Outstanding (Diluted) | 711.70M671.66M | +6.0% |
05—Questions
Frequently Asked Questions
What was Roblox's revenue performance in Q1 2026?
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.
Is Roblox profitable, and what is its net loss?
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.
What drove the significant increase in General and Administrative expenses?
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.
How is Roblox's liquidity position?
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.
06—Continue