Shares of Roblox Corporation (NYSE:RBLX) rallied sharply on Friday, rising more than 14% in U.S. premarket trading after the gaming platform reported better-than-expected fourth-quarter results and issued full-year bookings guidance that came in well above market expectations.
Roblox posted fourth-quarter bookings of $2.22 billion, comfortably ahead of the analyst consensus of $2.09 billion and up 63% year on year. Revenue increased 43% from a year earlier to $1.42 billion, although this was slightly below the $1.44 billion analysts had forecast. The company reported a loss of $0.45 per share, narrower than the expected loss of $0.48 per share.
Engagement metrics remained strong. Daily active users climbed to 144 million, representing 69% year-on-year growth and topping the Street estimate of 140.39 million. Total hours engaged reached 35 billion, an 88% increase from a year earlier and well above expectations of 32.97 billion.
“Fiscal 2025 was a banner year for Roblox, with results significantly exceeding both our annual guidance and our long-term targets,” said David Baszucki, CEO of Roblox. “We reached new heights across core metrics including average daily active users, Hours Engaged, revenue and bookings.”
Looking ahead, Roblox struck an optimistic tone for fiscal 2026, forecasting full-year bookings in a range of $8.28 billion to $8.55 billion, surpassing the analyst consensus of $8.05 billion. Revenue is expected to come in between $6.02 billion and $6.29 billion, compared with a market estimate of $6.19 billion.
For the first quarter, the company expects bookings of $1.69 billion to $1.74 billion, broadly in line with the $1.7 billion consensus, while revenue is guided at $1.37 billion to $1.42 billion versus expectations of $1.41 billion. Roblox also projected first-quarter adjusted EBITDA of $302 million to $320 million, slightly above Street expectations at the top end, and sees full-year 2026 covered adjusted EBITDA in the range of $2.0 billion to $2.17 billion.
Reacting to the results, Wolfe Research analyst Shweta Khajuria pointed to a “strong beat and raise on bookings and EBITDA.”
“We remain constructive on Roblox’s long- term growth profile given the trends we are seeing now, investments the company is making, and the size of the opportunity,” she added.
Analysts at Morgan Stanley, led by Matthew Cost, said Roblox “delivered strong results across the board,” noting that guidance “surprised to the upside” and supported momentum into 2026. They highlighted progress on three key investor concerns: world models and generative AI, user retention into 2026, and the effects of age verification.
The company also delivered a strong cash flow performance in the fourth quarter. Operating cash flow rose 229% year on year to $607 million, while free cash flow increased 155% to $307 million, well above the analyst estimate of $159.6 million.