Stocks of the popular online game platform Roblox have surged despite its revenue forecast for the next quarter coming in at $1.14 billion (£863.06 million), which falls short of analyst expectations by 3.5%.
The company also reported a GAAP net loss of $0.41 (£0.31) per share, which was 13.9% wider than analysts had anticipated.
A Boost in Revenue–But Still Falling Short
Roblox Corporation reported its Q2 2025 revenue at $1.08 billion (£817.32 million), up approximately 21% year‑on‑year, but still slightly below analysts' expectations. Second‑quarter bookings also surged 51% YoY to around $1.44 billion (£1.09 billion), beating consensus forecasts by a wide margin.
Meanwhile, Roblox's user engagement remained strong, with daily active users (DAUs) surging 41% year-over-year to 111.8 million, marking a new record. Hours engaged rose 58% to 27.4 billion, driven by continued momentum across mobile and international markets.
Average bookings per DAU also increased 7% year-over-year, highlighting improved monetisation.
Notably, Roblox saw sharp growth in the 13+ age group, which now makes up over 60% of its user base, signalling successful expansion beyond its younger demographic. The company also raised its full-year bookings guidance, reflecting confidence in continued user engagement and spending trends through the second half of 2025.
'Scale of Business is Impressive'
For David Baszucki, founder and CEO of Roblox, the Q2 2025 results demonstrate the company's broad-based strength across its platform, fueled by the emergence of several viral experiences. He also noted that they are encouraged by the momentum across Roblox as the company looks to 'capture 10% of the global gaming content market flowing through [the] platform'.
'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,' David stated.
Meanwhile, Naveen Chopra, who recently joined Roblox as chief financial officer earlier this June, commented that he is excited to join the company at a 'dynamic time' for this year.
'The scale of this business is impressive, with significant growth across key metrics including DAUs, Hours Engaged, Monthly Unique Payers, Revenue, and Bookings, demonstrating the health and expanding reach of our platform. This exceptional top-line growth, coupled with improving margins, excellent cash flow generation, and our strong balance sheet, positions us to continue investing in long-term, durable growth,' he explained.
How Are Analysts Reacting So Far?
Most analysts celebrated the Q2 performance—especially the momentum in user growth and bookings—and many raised their targets. Yet, concerns persist regarding valuation, profit margins, and whether Roblox can sustain its strong growth going forward.
JPMorgan analyst Cory Carpenter raised his price target from $120 to $125 (£90.69 to £94.47), maintaining a Buy rating and emphasising strong bookings growth, now expected at 37% in Q2 and 30% for fiscal 2025.
Meanwhile, Benchmark Investors retained its Buy rating, albeit with a more modest price target closer to fair value (~$77 or approximately £58.19), amid valuation concerns.
On the other hand, Zacks noted that despite impressive top-line momentum and strength in the creator economy, Roblox trades at a premium valuation and is facing ongoing pressure on margins due to continued reinvestment in AI and infrastructure. Ainvest also cautioned that some targets imply downside risk, noting high expectations and a pricey market position.
More Than a Gaming Platform
Roblox's Q2 2025 results reinforced its evolution into more than just a gaming platform, with surging bookings, record user engagement, and expanding monetisation avenues. Industry analysts largely praised its momentum—especially among older users—and its strong creator ecosystem.
While revenue and GAAP losses missed expectations, the market responded favorably, sending shares to new highs. Continued investment in immersive ads, AI infrastructure, and branded experiences reflects Roblox's long-term vision for the metaverse.
Still, concerns over valuation and profitability linger. As Roblox scales its platform and diversifies revenue streams, the coming quarters will test whether its current growth trajectory can translate into sustained financial strength.
