Roth Capital Boosts Roblox Price Target 7.7% on 20%+ Bookings Growth Forecast
Roth Capital raised its recommendation on Roblox to Buy and increased its target price by 7.7% to $84, citing management’s guidance for bookings growth above 20% annually. In Q4 2025, daily active users jumped 69% to 144 million and bookings surged 63% to $2.2 billion, with full-year 2026 bookings seen rising 22–26%.
1. Analyst Upgrade and Target Increase
Roth Capital upgraded Roblox to Buy from Neutral and raised its target price by 7.7% to $84, highlighting better-than-expected bookings guidance and enhanced development tools that bolster a sustainable, high-quality game-production cycle.
2. Q4 2025 Operational Performance
In the fourth quarter of 2025, daily active users grew 69% year-over-year to 144 million, hours engaged increased 88% to 35 billion, revenue rose 43% to $1.4 billion and bookings climbed 63% to $2.2 billion.
3. 2026 Guidance Outlook
Management forecasts revenue growth of 32–37% for Q1 2026 and 23–29% for full-year 2026, with bookings expected to rise 40–44% in Q1 and 22–26% over the full year, underpinning sustained expansion.
4. Key Growth Drivers
The upgrade underscores improving development tools that enable higher-quality content creation, which Roth Capital views as the main driver for maintaining robust bookings growth above 20% annually over the coming years.