RBLX
Roblox Corporation

Roblox CorporationRBLX

Communication Services · Electronic Gaming & Multimedia
49.30USD
+3.46%
Nov 09, 2026
RBLX overview ready
Consumer-facing social gaming and creation platform enabling user-generated multiplayer experiences
Roblox operates a consumer-facing social gaming and creation platform: users access multiplayer experiences and virtual goods, while independent developers use Roblox Studio and platform services to build, distribute, monetize, advertise, and operate those experiences.
Theme not measured
Video Games has no leadership state this session.
Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
User engagement decline.
Market Nov 6Filing Sep 30Price action Nov 8Research Oct 20

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction6.9BusinessPerformance4.0BusinessQuality4.9Valuation3.5ThemeMomentum—Decelerating — Revenue is still growing (+16% YoY), but growth has slowed for 3 consecutive quarters, down from +43%. The company is still loss-making: the diluted loss per share narrowed to -$0.32 from -$0.37 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Video Games — Video Games is tracked (3–4 priced members) — too few for a leadership state
Its economic family, Communications & Media, reads Improving (+3.0pp vs SPY) — the family’s reading, not this theme’s.
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$35.3B
Avg Volume (60D)
11.4M
60 sessions
Revenue Growth YoY
+35.8%
FY2025 vs FY2024
Gross Margin
+27.3%
Operating Margin
-19.8%
Trailing twelve months
Free Cash Flow Yield
+4.4%
Distance from 200DMA
-4.2%
P/E
N/M
EV / Sales
5.6x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Decelerating

Revenue is still growing (+16% YoY), but growth has slowed for 3 consecutive quarters, down from +43%. The company is still loss-making: the diluted loss per share narrowed to -$0.32 from -$0.37 a year earlier.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthSlowing
+16%
$1.57B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +43%
  2. +39%
  3. +36%
  4. +16%
Earnings growthLoss narrowing
-$0.32
Diluted EPS -$0.32 vs -$0.37 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
-18.0%
+3.8 pp YoY

Business Quality

4.9 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; peers is the dissenting view. The published stance is held at fair because operating losses behind the low multiple.
Roblox Corporation has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

Company Research

Thesis
Roblox operates a consumer-facing social gaming and creation platform: users access multiplayer experiences and virtual goods, while independent developers use Roblox Studio and platform services to build, distribute, monetize, advertise, and operate those experiences.
Opportunity
Moderate opportunity
Platforms that combine social gameplay, creator publishing tools, virtual economies, discovery systems, and recurring monetization to let third-party creators build and operate interactive entertainment businesses.
Key risk
User engagement decline.

Economic classification

Loading the economic classification…

Business & Markets

Communication Services · Electronic Gaming & Multimedia
What they do

Roblox Corporation operates a social gaming platform that enables users to access multiplayer immersive experiences and allows developers to create, publish, and manage these experiences using its development tools and cloud infrastructure.

How it earns

The company generates revenue primarily through transactional sales of virtual goods and in-game purchases within its platform.

Products & services
Roblox Client
Roblox Studio
Roblox Cloud
Customers & end markets
Individual users (gamers)
Independent developers and creators
Market position

Leader in user-generated social gaming platforms with a large active user base and developer community.

Demand drivers
Medium cyclicality

Demand for interactive entertainment can fluctuate with consumer discretionary spending and broader economic conditions.