Roblox (RBLX) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 16% YoY to $1.572B; bookings fell 12% to $1.697B, while net loss narrowed to $230M from $258M.

• Bookings exceeded the high end of guidance; seasonally adjusted retention was highest since 2021.

• Average DAUs were 138M, down 9% YoY; hours engaged were 29B, down 15%.

• Growth plans emphasize AI-enabled creation, broader 18+ adoption, discovery and distribution initiatives.

Financial highlights

• Q3 operating loss was $283M versus $296M; Adjusted EBITDA rose to $138M from $46M, including $49M of legal settlement expenses and $7M of other charges.

• Operating cash flow was $395M, down 28% YoY; free cash flow was $364M, down 18%.

• Cost of revenue was $294M, up 7%; developer exchange fees were $363M, down 6%; infrastructure and trust & safety expense was $134M, up 24%.

• 9M revenue rose 29% to $4.483B; bookings increased to $4.985B from $4.567B, and net loss narrowed to $663M from $754M.

• 9M operating cash flow was $1.342B and free cash flow was $1.254B, versus $1.189B and $1.046B in 9M 2025.

Outlook and guidance

• Q4 revenue guidance is $1.470B–$1.580B, up 4%–12% YoY; bookings guidance is $1.890B–$2.000B, down 10%–15%.

• Q4 net loss guidance is $363M–$423M; Adjusted EBITDA guidance is a loss of $10M–$70M.

• Q4 operating cash flow guidance is $190M–$275M; $380M of capital expenditure and intangible asset purchases implies negative free cash flow of $105M–$190M.

• Q4 bookings assumptions include seasonal DAU declines, no repeat of recent hit-game or Halloween strength, and no near-term monetization improvement; GTA's impact is uncertain.

• Q4 infrastructure expense is expected to rise for AI initiatives; FY CapEx is projected at $468M, the low end of beginning-of-year expectations.