"Disruption In The Other Direction"

An update on Roblox (RBLX)

Note: Review all prior Roblox research at the “RBLX” tab on the website.

Roblox’s 2025 results were exceptional, with 55% bookings growth, 69% daily active user (DAU) growth, and a >100% increase in free cash flow.

The DAU count was ~144 million in Q4 FY25, with nearly 60 million added in the past 12 months. Within the DAU base, there are ~36.7 million monthly payers who, on average, generate about $20 in monthly bookings for Roblox. (The number of monthly payers is ~2x higher than the YE FY19 DAU count).

It was a banner year, with results that far exceeded initial expectations - and yet the stock is not only down over the past year, but it’s also below where it traded following the March 2021 direct listing. With improved financials, Roblox is now trading at its lowest EV/EBITDA multiple since going public.