Q4 2025 Supplemental Materials: Roblox

Roblox concluded the 2025 fiscal year with substantial financial and operational momentum, characterized by a 43% year-over-year revenue increase to $1.4 billion and a 63% surge in bookings to $2.2 billion. This growth is underpinned by robust global engagement, with the platform reaching 144 million average daily active users who collectively spent 35 billion hours on the service during the fourth quarter. These figures underscore the platform's ability to scale its ecosystem across diverse international markets, supported by a strong liquidity position featuring $5.5 billion in total cash and investments.

The company’s financial strategy relies on a clear distinction between GAAP revenue, which is amortized over an estimated 27-month user lifetime for virtual items, and bookings, which capture the immediate cash value of transactions. While free cash flow reached $307 million in the final quarter, the company maintains a cautious outlook regarding profitability. Projections for 2026 anticipate continued top-line expansion of 22% to 29%, yet these targets are accompanied by expectations of ongoing consolidated net losses and a projected year-over-year decline in Adjusted EBITDA as the company continues to prioritize investment in developer exchange fees and personnel.

Operational transparency remains a focal point, as the company actively refines its measurement methodologies to account for evolving user behavior and platform integrity. Metrics such as hours engaged and session calculations are subject to ongoing adjustments to better identify botting and non-active time, while key performance indicators like average bookings per daily active user are derived from account-level data. These refinements reflect a broader effort to improve the accuracy of performance tracking as the platform transitions to more sophisticated age-verification systems and data-gathering protocols.