RBLX earnings analysis
What we found in RBLX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Roblox Corporation reported Q1 2026 revenue of $1.44 billion, surpassing last year by 39%, though it fell short of estimates by 7.8%. EPS of -$0.35 exceeded expectations of -$0.41, driven by improved cash flow and a recovery in daily active users. However, the company revised its guidance for lower revenue growth due to ongoing regulatory and safety headwinds.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth by 39% YoY
- Quarterly revenue reached $1.44 billion, a 39% increase from $1.04 billion in Q1 2025.
- EPS Exceeds Expectations
- Reported EPS of -$0.35 beat the consensus forecast of -$0.41.
- Strong Operating Cash Flow
- Operating cash flow was $629 million, up from $444 million year-over-year, a 42% increase.
- Increase in Daily Active Users
- Average Daily Active Users increased to 132 million from 83 million in Q1 2025.
- Deferred Revenue Growth
- Deferred revenue for the quarter rose to $996 million, suggesting strong future revenue recognition.
- Improved Gross Margin
- Gross margin improved to 78.7% in Q1 2026 from 77.4% in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Significant Increase in Legal Expenses
- General and administrative expenses rose 76% YoY to $209 million, primarily due to $57 million in legal settlements.
- High Dependence on User Engagement
- With 83% of DAUs coming from outside the U.S., any geopolitical or regulatory changes could hurt international revenue.
- Regulatory Headwinds Impacting Growth
- Current guidance indicates slower revenue growth of 20%-25% due to increased scrutiny and changing regulations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.35
- Gross margin
- 78.7%
- Operating margin
- -20.4%
What they said about what is next.
Expecting revenue growth of 20%-25% for the year, down from previous estimates.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 11, 2026
- Roblox reports continued top-line and engagement expansion in 2025 with 127 million average DAUs and 123.9 billion hours engaged (2.7 hours per DAU/day). Aggregate 2025 revenues (sum of quarterly results) were about…
- 10-K · February 18, 2025
- Roblox emphasizes growth driven by two network effects — user-generated content and social connections — and reports large scale engagement (82.9 million average DAUs and 73.5 billion hours engaged in 2024). The company…
- 10-Q · October 31, 2024
- Roblox reported Q3 revenue of $918,953 (thousands), up 28.8% year-over-year from $713,225, with gross margin roughly stable at ~77.7% and operating loss narrowing versus the prior year. EPS improved to $(0.37) from…
- 10-Q · November 8, 2023
- Roblox reported Q3 revenue of $713.225M (three months ended September 30, 2023), up from $517.707M a year earlier, while reporting a GAAP diluted loss per share of $(0.45) (improved vs $(0.50) in Q3 2022). Operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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