Roblox Q2 earnings report exceeded expectations on many key metrics, despite the company posting large net losses.
The Q2 results announced $1.44 billion in net bookings, which easily surpassed analyst expectations of $1.24 billion and marked a 51% year-over-year increase.
User engagement also soared, with daily active users (DAUs) hitting 111.8 million (up 41%). Users spent a total of 27.4 billion hours on the platform, a 58% increase from the same quarter last year.
David Baszucki, founder and CEO of Roblox, commented on the results, stating, “Our Q2 2025 results demonstrate broad-based strength across the Roblox platform, fueled by the emergence of several viral experiences.”
Net Loss To Be Reversed In Future Quarters
Revenue was $1.08 billion, up 21% year-over-year, but the company posted a net loss attributable to common stockholders of $278.4 million, while consolidated net loss was $279.8 million.
The loss stemmed from high deferred revenue expenses, meaning much of the revenue from net bookings this quarter is yet to be reflected.
Additionally, the company made substantial investments in infrastructure and creator tools. The high increase of user engagement points to this paying off in the future.
Baszucki added, “Our year-on-year growth this quarter is a reflection of our strategic investments in infrastructure and performance, discovery, and the virtual economy, which continue to create fertile conditions for creators to thrive as part of a healthy, interconnected ecosystem.”
Roblox Aims For 10% Of Global Gaming Market Amid Growth
The company is leading the way with interactive game experiences, which are driving growth in online gaming. The industry is expected to grow to $333 billion by 2030, from $208.58 billion in 2024.
Baszucki concluded his statement on the earnings by commenting, “We are encouraged by the momentum across Roblox as we look to capture 10% of the global gaming content market flowing through our platform.”
Adjusted EBITDA was $18.4 million, which excludes an adjustment for a total net increase in deferred revenue and deferred cost of revenue of $301.5 million.
Q3 Guidance Raised As Stock Price Jumps
Based on the results, the company raised its Q3 guidance to between $1.59 billion and $1.64 billion in bookings, well above the $1.42 billion expected by analysts.
Roblox stock shot from $127.42 to $149.74 after the results were announced, but has since dropped back down to $137.79.
Despite the positive report, Roblox continues to face lawsuits over claims that minors risk platform addiction, child sexual exploitation, and mental health harms. An additional lawsuit also alleges that children can gamble Robux on sites that simulate online casinos.
Naveen Chopra, appointed as CFO on June 30, focused only on the positive, stating, “I am excited to join Roblox at such a dynamic time. The scale of this business is impressive, with significant growth across key metrics including DAUs, Hours Engaged, Monthly Unique Payers, Revenue, and Bookings clearly demonstrating the health and expanding reach of our platform.
“This exceptional topline growth, coupled with improving margins, excellent cash flow generation, and our strong balance sheet, positions us to continue investing in long-term, durable growth.”
