Can Rising Revenue Outpace Persistent Losses in Roblox's (RBLX) Long-Term Strategy?

• Roblox Corporation reported its third quarter 2025 results with sales rising to US$1.36 billion from US$918.95 million a year earlier, while net loss widened slightly to US$255.63 million and per-share loss was unchanged at US$0.37.
• Rising engagement and ongoing monetization efforts are shaping investor expectations as Roblox continues to see strong growth in user activity and revenue, despite persistent losses.
• We will explore how Roblox’s sustained revenue gains and efforts to monetize its expanding user base shape the company’s long-term potential.

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Roblox Investment Narrative Recap

To be a Roblox shareholder, you need to believe in the company's ability to translate its surging user engagement and expanding platform activity into sustainable, profitable growth. The strong Q3 revenue beat highlights short-term momentum, but the persistence of net losses and unchanged per-share loss means the biggest risk, high developer payouts and platform investment outpacing monetization, remains unresolved for now. This news does not materially change the core story, since engagement strength and loss trends continue much as before.

One announcement that stands out in context is the Lionsgate collaboration for a Halloween-themed survival event on Roblox, timed to coincide with peak seasonal user activity. Not only does this spotlight Roblox’s appeal to partners seeking innovative digital reach, it also reinforces the company's catalysts around user engagement, monetization of branded content, and genre expansion, all crucial for converting scale into top-line growth amid ongoing competitive pressures.

Yet, in contrast to this robust engagement, investors should be aware that the sustainability of high developer payouts as a share of revenue is an open question if...

Read the full narrative on Roblox (it's free!)

Roblox's outlook anticipates $9.6 billion in revenue and $903.3 million in earnings by 2028. This scenario assumes a 33.5% annual revenue growth rate and a $1.86 billion increase in earnings from the current -$952.3 million.

Uncover how Roblox's forecasts yield a $149.42 fair value, a 32% upside to its current price.

Exploring Other Perspectives

Seventeen fair value estimates from the Simply Wall St Community span a wide US$14.1 to US$175 per share, reflecting divergent views. With robust user expansion as a key catalyst, these different perspectives highlight several angles on Roblox’s future performance, explore further to see why these opinions vary so much.

Explore 17 other fair value estimates on Roblox - why the stock might be worth as much as 55% more than the current price!

Build Your Own Roblox Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Roblox research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Roblox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Roblox's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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