Shares for online game platform Roblox fell on Thursday as the company released its Q3 2025 financial report. While Roblox’s performance in revenue and bookings was “better than expected,” a jump in capital expenditures could negatively impact brand margins. According to the company’s shareholder letter, the brand anticipates $468 million in capital expenditures — $158 million more than previous guidance suggested — in order “to meet the faster-than expected surge in demand and to invest in strategic initiatives like safety and AI.”
Roblox’s plan to prioritize user protections comes as no real surprise. The social platform’s safety protocol has come under increasing scrutiny from parents, online safety experts, and lawmakers, an uptick likely driven by related child abductions and weak existing safety measures. Multiple recent lawsuits claim the social platform and its in-game “experiences” pose dangers to young players. Ongoing litigation alleges that existing Roblox safety measures allow predators to connect with and subsequently abuse and exploit minors.
Overall Performance
Roblox shares fell 37 cents, exceeding an anticipated 49-cent drop. Overall, the company’s Q3 revenue rose nearly 50% year-over-year (48%) to $1.36 billion. At the same time, bookings climbed 70% to $1.92 billion. The brand’s booking figures surpassed London Stock Exchange Group (LSEG) estimates of $1.65 billion. “Our third-quarter results demonstrate the tremendous progress weʼve made toward our goal of capturing 10% of the global gaming market,” said CEO David Baszucki in a related release (per CNBC).
Q3 Performance
- Revenue: $1.35 billion, +48% year-over-year (YoY)
- Bookings: $1.92 billion, +70% YoY
- Net losses: $257 million ($240 million in Q3 2024)
User Metrics
- Average Daily Active Users (DAUs): 151.5 million, +70% year-over-year (YoY)
- +89% in DAUs aged 13 and older
- Hours engaged: 39.6 billion, +91% YoY
- Average monthly unique payers (MUPs): 35.8 million, +88% YoY
- Average bookings per DAUs: $12.68 (short of $13.24 expectations)
- Average bookings per MUPs are up in every region; the platform’s top 1,000 creators averaged $1.1 million over the last 12 months
Total engagement hours for users aged 13 and older increased by 107% YoY, while engagement for young gamers (users under the age of 13) rose 67%. Hourly playtime for users in the U.S. and Canada jumped 47%, as well. Roblox CEO and founder David Baszucki says this kind of growth is due largely to “strategic investments in creator economics, platform performance, discovery, and the virtual economy.”
Roblox says its “operating margin could decline slightly year-over-year due to the combination of higher DevEx rates and the impact of infrastructure and safety related investments catching up with rapid bookings growth.” DevEx, the company’s Developer Exchange Program, lets Roblox creators exchange earned in-game currency, or “Robux,” for real-world money. While the program sounds appealing on paper, Roblox says the DevEx’s intense creator requirements mean “only successful creators” can participate in a meaningful way. “Reaching this level of success typically requires a lot of time, effort, skill, and strategy. Even then, there is no guarantee of earning money,” Roblox states on its DevEx webpage.
Roblox has since raised its fiscal goals; the platform now expects revenue to fall between $4.82 billion and $4.87 billion. Additionally, Roblox is targeting bookings between $6.56 billion and $6.61 billion.
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