Roblox Corporation

What does Roblox do?
Roblox operates an online platform where users create, share, and play user-generated games and interactive experiences. The platform is free to use and runs on mobile devices, desktop computers, and consoles. Users purchase Robux, a virtual currency, for in-experience purchases. Roblox Studio allows developers to build experiences, and the Developer Exchange program lets developers convert earned Robux to real currency.

Is Roblox publicly traded?
Yes, Roblox Corporation trades on the New York Stock Exchange under ticker symbol RBLX. The company went public through a direct listing in March 2021. Roblox has a dual-class share structure with Class A shares (one vote per share) and Class B shares (10 votes per share), giving co-founder David Baszucki significant voting control.

What is Roblox's annual revenue?
In FY2025, Roblox reported revenue of $4.9 billion, up 36% year-over-year, with bookings of $6.8 billion, up 55% year-over-year. The platform had 127 million average daily active users who spent 123.9 billion hours engaged. Operating cash flow was $1.8 billion for the full year.

Who founded Roblox?
Roblox Corporation was founded in 2004 by David Baszucki and Erik Cassel. Baszucki had previously co-founded Knowledge Revolution, which developed educational physics simulation software. Cassel passed away in 2013 after a battle with cancer. Baszucki continues to serve as President and CEO.

What is Robux?
Robux is the virtual currency used within the Roblox platform. Users purchase Robux with real money and spend them on virtual items, avatar accessories, game passes, and other in-experience purchases. In FY2025, approximately 1.8 million daily unique paying users spent an average of $10.36 per day on Robux. Developers earn Robux through their experiences and can convert them to real currency through the Developer Exchange program.

How old are Roblox's users?
The majority of Roblox's user base is under 17 years old, though the platform has been expanding its older audience. In FY2025, Roblox reported that 127 million average DAUs across over 180 countries spent 2.7 hours per day on the platform. The company is investing in AI tools, enhanced graphics, voice chat, and more sophisticated game experiences to attract and retain older users.

Is Roblox profitable?
In FY2025, Roblox achieved positive net income for the full year, a milestone for the company. Operating cash flow was $1.8 billion and free cash flow in Q4 2025 was $307 million, up 155% year-over-year. However, GAAP net loss can still increase in certain quarters due to the timing of deferred revenue recognition versus operating cost recognition.

David Baszucki and Erik Cassel founded Roblox Corporation in 2004. Baszucki had previously co-founded Knowledge Revolution, which developed Interactive Physics, an educational physics simulation software. The experience of building a platform where users could create and share simulations shaped the concept for Roblox.

Baszucki and Cassel began developing the platform in 2003 and launched it in beta in 2004. Roblox officially launched publicly in 2006 as a PC-based platform where users could create games using Roblox Studio and share them with other players. Early growth was slow. The platform built a community of young creators drawn to the ability to build and share their own games.

Roblox expanded to mobile devices in 2012 with iOS and Android apps. Mobile access dramatically accelerated user growth. The platform's popularity grew through the mid-2010s, particularly among children aged 8 to 14 attracted to user-generated content and social features.

Co-founder Erik Cassel passed away in February 2013 after a battle with cancer. Baszucki continued leading the company and has credited Cassel as a foundational influence on the platform's development.

The COVID-19 pandemic in 2020 drove explosive growth. Daily active users grew from approximately 17 million in 2019 to approximately 32 million in 2020 as school closures and social distancing pushed children and teenagers online for entertainment and social connection.

Roblox went public through a direct listing on the NYSE in March 2021, valuing the company at approximately $45 billion. The direct listing allowed existing shareholders to sell shares without the company raising new capital. The valuation reflected investor enthusiasm for the metaverse concept and Roblox's position in user-generated gaming.

Following the public listing, Roblox continued investing in platform capabilities. Voice chat launched in 2021. The company improved its avatar system and graphics capabilities. It expanded developer monetization tools and launched a partner program for brands interested in immersive advertising.

FY2025 was a breakthrough year. Revenue grew 36% to $4.9 billion. Bookings grew 55% to $6.8 billion. The platform added approximately 60 million DAUs from Q4 2024 to Q4 2025, reaching 144 million DAUs in Q4 2025 alone. Operating cash flow was $1.8 billion for the full year. Free cash flow in Q4 2025 was $307 million, up 155% year-over-year. The company achieved positive net income for the first time.

In Q2 2026, revenue grew 36% year-over-year to $1.5 billion, with operating cash flow of $318 million. However, bookings growth slowed to 8%, reflecting a shift in user engagement from high-monetizing 2025-vintage viral games to newer and evergreen games with lower hourly monetization. DAUs reached over 120 million in the quarter. In June 2026, Roblox was reinstated in Russia, providing a modest sequential benefit to DAUs and hours engaged.

Roblox has faced significant scrutiny related to child safety and monetization practices. Critics have raised concerns about the platform's virtual currency system, arguing that it obscures the real-money cost of in-game purchases and may encourage children to spend more than their parents intend. Several countries have investigated whether Roblox's virtual currency system constitutes gambling or violates consumer protection laws.

The platform has faced criticism related to inappropriate content in user-generated games, including sexual content and violence not appropriate for the platform's young user base. In 2022, a BBC investigation found evidence of sexual content in Roblox games accessible to children. Roblox responded by strengthening its content moderation and safety systems.

The Developer Exchange program has faced scrutiny from developers and regulators. Critics argue that the exchange rate, historically around 35% of the face value of Robux, is unfavorable to developers given the platform's revenue. Roblox has adjusted DevEx terms over time but the fundamental revenue split remains a point of contention in the creator community.

Roblox's Q2 2026 results revealed a bookings growth slowdown to 8%, driven by a shift from high-monetizing viral games to newer and evergreen games with lower hourly monetization. The company also disabled the sale of cross-experience game passes, which negatively impacted monetization. These developments raised questions about the sustainability of Roblox's growth trajectory and its ability to maintain per-user monetization as the user base expands and diversifies.