Roblox Shares Plunge 19% After Q1 Misses and Guidance Cut
Roblox reported Q1 revenue of $1.42 billion and bookings of $1.7 billion, missing forecasts of $1.74 billion and $1.73 billion, daily active users fell to 132 million versus the 145.65 million expected. The company lowered full-year bookings growth to 8–12% and revenue growth to 20–25%, triggering a 19% share plunge.
1. Q1 Financial Results
Roblox reported Q1 revenue of $1.42 billion, missing the $1.74 billion estimate, and bookings of $1.7 billion versus $1.73 billion expected. Adjusted loss was $0.35 per share and free cash flow rose 40% year over year to $596 million, while daily active users declined to 132 million.
2. Safety Headwinds
Age-verification and chat restrictions for users under nine, along with a Russia platform ban since December 2025, slowed user acquisition and reduced communication features, moderating engagement growth. Hours engaged still increased 43% year over year to 31 billion despite these headwinds.
3. Guidance Revisions
Full-year 2026 guidance was trimmed to revenue growth of 20–25% and bookings growth of 8–12%. For Q2, Roblox forecasts bookings of $1.6 billion and revenue growth of 29–34%, with operating cash flow of $260–275 million and free cash flow of $230–245 million.