Roblox defies losses with 36% revenue surge and 144M daily users in 2025
Roblox has reported strong financial growth for 2025, despite ongoing losses. The gaming platform saw revenue climb 36% to $4.9 billion, though it recorded a net loss of $1.07 billion for the year. Investors reacted positively, pushing the company's stock up 22% after better-than-expected results.
The company's fourth-quarter performance exceeded expectations in several areas. Daily active users jumped 69% to 144 million, while total hours spent on the platform surged 88% to 35.2 billion. Bookings for Q4 reached $2.2 billion, a 63% increase that beat analyst forecasts of $2.09 billion.
Roblox also delivered a positive cash flow surprise. Free cash flow doubled estimates, hitting $307 million, even as the company posted a net loss of the same amount for the quarter. CEO David Baszucki described 2025 as a standout year and set ambitious long-term goals: connecting one billion users and securing 10% of the global gaming market.
Looking ahead, the company's guidance for Q1 2026 bookings came in at $1.69–$1.74 billion, surpassing Wall Street's $1.68 billion prediction. This represents a projected year-over-year growth of 40% to 44%. However, mandatory age verification introduced in late Q4 2025 revealed that 73% of users are under 18, which may create short-term challenges.
For the full year 2025, bookings rose 55% to $6.8 billion, exceeding the $6.6 billion estimate. The strong results drove Roblox's share price to $74, reflecting investor confidence in its growth trajectory.
Roblox's 2025 performance highlights rapid user and revenue expansion, despite persistent losses. The company's optimistic outlook for 2026 suggests continued momentum, though age verification findings could impact near-term operations. Analysts and investors will likely watch how these factors shape future growth.
