Roblox (RBLX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.04 billion, up 29% year-over-year, with bookings at $1.21 billion, both exceeding guidance.

• Average daily active users (DAUs) hit 97.8 million, up as much as 30% year-over-year, with strong growth across all regions and demographics.

• Free cash flow surged 123% year-over-year to $427 million, benefiting from a delayed $30 million developer payout.

• Net loss attributable to common stockholders was $215.1 million, an improvement from $270.6 million in Q1 2024.

• Significant operational efficiencies achieved, especially in trust and safety, aided by AI and platform investments.

Financial highlights

• Revenue: $1.04 billion (+29% YoY); Bookings: $1.21 billion (+31% YoY); both exceeded guidance.

• Free cash flow: $426.5 million, up 123% YoY; cash from operations: $444 million, up 86% YoY.

• Adjusted EBITDA was $58 million, up from a loss of $6.9 million in Q1 2024.

• Personnel costs (excluding SBC): $238.5 million, growing slower than revenue and bookings.

• Cash, cash equivalents, and investments totaled $4.5 billion; net liquidity was $3.5 billion.

Outlook and guidance

• Q2 2025 revenue guidance: $1,020–$1,045 million; bookings: $1,165–$1,190 million.

• FY 2025 revenue guidance: $4,290–$4,365 million; bookings: $5,285–$5,360 million; free cash flow: $885–$930 million.

• FY 2025 net loss expected between $(1,037)–$(977) million; adjusted EBITDA $205–$265 million.

• Guidance for full-year margin improvement remains unchanged despite Q1 outperformance.

• Management expects continued investment in infrastructure, safety, and platform innovation.