01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Roblox Corporation's Q3 2026 10-Q filing indicates continued revenue growth, with a 16% increase year-over-year for the three months ended September 30, 2026, reaching $1.57 billiona.
This growth was primarily driven by higher amortization of prior period deferred revenue, although current period bookings saw a decrease. The nine-month period showed a more robust 29% revenue increase to $4.48 billionb, also bolstered by deferred revenue amortization and an increase in current period bookings, driven by a higher average number of daily unique paying users. The company continues to invest heavily in infrastructure, trust and safety, and research and development, leading to increased operating expenses.
Despite revenue growth, Roblox reported a net loss of $230 millionc for the third quarter and a year-to-date net loss of $663 million. However, the company generated strong operating cash flow of $1.34 billion for the nine months ended September 30, 2026, and maintained a healthy cash and investments balance of $6.2 billion, providing ample liquidity. A significant portion of the Q3 net loss was attributed to legal settlement accruals related to youth-related consumer protection and digital safety matters, highlighting ongoing legal and regulatory challenges.
02—Key points
Key Highlights
- Revenue increased by 16% year-over-year to $1.57 billion for the three months ended September 30, 2026, and by 29% to $4.48 billion for the nine months ended September 30, 2026.
- The company reported a net loss of $230 million for the third quarter of 2026 and $663 million for the first nine months of 2026.
- Operating cash flow remained strong, with $1.34 billion generated in the first nine months of 2026.
- Total assets grew to $10.05 billion as of September 30, 2026, with cash and equivalents and investments totaling $6.2 billion.
- General and administrative expenses saw a significant increase of 40% year-over-year for the quarter, largely due to $49 million in legal settlement accruals.
- Sales and marketing expenses increased by 66% year-over-year for the quarter, driven by higher advertising and promotional expenses.
- Roblox announced a share repurchase program authorization of up to $3.0 billion, with $2.4 billion remaining available as of September 30, 2026.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2026, Roblox lost $0.14.
- Revenue$1.57B100.0%
- Cost of revenue−$318.0M20.2%
- Gross profit$1.25B79.8%
- Operating costs−$1.54B97.8%
- Operating income−$283.0M18.0%
- Interest, other & tax$56.0M3.6%
- Net income−$227.0M14.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.57B$1.36B | +15.6% |
| Cost of Revenue | $318.00M$296.00M | +7.4% |
| Gross Profit | $1.25B$1.06B | +17.9% |
| R&D Expenses | $435.00M$399.00M | +9.0% |
| Operating Expenses | $1.85B$1.66B | +12.0% |
| Operating Income | -$283.00M-$296.00M | +4.4% |
| Net Income | -$227.00M-$256.00M | +11.3% |
| EPS (Basic) | $-0.32$-0.37 | +13.5% |
| EPS (Diluted) | $-0.32$-0.37 | +13.5% |
| Shares Outstanding (Basic) | 715.94M697.28M | +2.7% |
| Shares Outstanding (Diluted) | 715.94M697.28M | +2.7% |
05—Questions
Frequently Asked Questions
What is Roblox's financial performance for the third quarter of 2026?
For the three months ended September 30, 2026, Roblox reported revenue of $1.57 billion, an increase of 16% year-over-year. However, the company incurred a net loss of $230 million. Operating cash flow remained strong, and the company maintained a significant cash and investment balance.
What are the main drivers of Roblox's revenue growth?
Revenue growth was primarily driven by higher amortization of prior period deferred revenue. While current period bookings saw a decrease in the third quarter, the nine-month period showed an increase in bookings, supported by a higher average number of daily unique paying users.
What are the key factors contributing to Roblox's net loss?
The net losses are influenced by significant investments in infrastructure, trust and safety, and research and development. For the third quarter, a notable contributor to expenses was $49 million in legal settlement accruals related to youth-related consumer protection and digital safety matters.
How is Roblox's liquidity and financial position?
Roblox maintains a strong liquidity position with $6.2 billion in cash and equivalents and investments as of September 30, 2026. The company also generated $1.34 billion in operating cash flow for the first nine months of the year, indicating a healthy ability to fund its operations and strategic initiatives.
06—Continue