Roblox reported its third quarter financial results today, showing growth in various milestones such as revenue in consecutive quarterly performance but not necessarily compared to a year ago.
The stock market hasn’t responded positively to the results yet, as the stock is down 9% in after-hours trading. Daily active users were down 9% from a year ago, but they were up from the previous quarter.
The platform for user-generated games has become the world’s biggest game platform, with 138 million average daily active users in the first fiscal quarter ended September 30, up from 123 million in the prior quarter and down from 152 million in Q3 2025.
Revenue in the quarter was $1.572 billion, up 16% from $1.36 billion a year earlier. The consolidated net loss for the quarter was $230 million, while adjusted EBITDA, a measure of profitability, was $138 million. Operating cash flow in the quarter was $395 million, up from $318 million in Q2 but down from $546 million a year ago.
In the earnings statement, David Baszucki, founder and CEO of Roblox, said, “Our Q3 financial results came in ahead of our guidance for revenue, bookings, and cash flow. AI is fundamentally reshaping the gaming industry, driving a step function change in the pace at which content can be created. When anyone can create a game, what matters most is scaled distribution, effective discovery, a robust economy, industry-leading safety, and infrastructure to support it all. Roblox is built on an architecture that combines all of these elements, and AI has accelerated our ambitions. We’re building Roblox into the platform for all gaming, where any game can be created once, run anywhere, on any device at massive scale.ˮ
The company pointed to its growth in AI adoption as reaching an inflection point in the last three months.
In a letter to shareholders, Roblox said, “During the last three months, we have witnessed an inflection point in AI adoption and content generation in the gaming industry overall, and on Roblox in particular. AI-enabled game creation, automation in code generation and AI supported asset creation are leading to an explosion of content. The time it takes to go from an idea to a playable game is compressing dramatically, and so is the time it takes to adapt a game for new devices.”
Baszucki estimated that Roblox has 20% of the players under age 18 in the U.S., in an analyst call.
“There is a massive surge in creation” on the Roblox platform, with game volume leveraging AI going up 50% quarter to quarter, Baszucki said.
“We have been embracing AI to accelerate creation since the first release of Roblox Studio Assistant in December 2023,” the letter said. “Over the past month, more than 80% of the top 100 games on Roblox (ranked by hours engaged) used AI tools to accelerate creation, and the number of daily asset uploads to the Roblox cloud tripled month-over-month.”
The letter also said that, since Q2, time spent using AI tools (including Build, Studio Assistant, and external AI via MCP) tripled among top creators, and those using our MCP server daily grew nearly five times.
The letter added, “In Q3, Break and Steal an Egg and Huss Valley were both created almost entirely with AI and both broke into the Roblox top 20 (ranked by concurrent players). Build is our new prompt-to-game creation tool. Since its alpha launch in New Zealand, Singapore, Serbia and Thailand, more than 500,000 users have used Build – and have published over 70,000 games.”
Baszucki said at the outset there’s a lot going on in the industry and he’s excited about it regarding Roblox.
“I want to reiterate, our long-term vision is to capture 10% of the global gaming market on Roblox, with an even greater share in the U.S.,” he said. “We do estimate that in our app, approximately 20% of U.S. under-18 market revenue is already on Roblox.”
He said Roblox is aiming to replicate that success with 18 and older players.
“Our long-term mission remains to connect a billion daily active users with optimism and civility,” Baszucki said. “We’ve seen capability both open source and frontier models continue to accelerate, and the time required to go from an idea to a playable game is compressing dramatically, and we’re seeing that on Roblox, and we’re seeing it in the top charts on Roblox. “
He said daily asset uploads to the Roblox cloud have tripled, and he said assets with images, textures, meshes are a good proxy for the amount of creativity that’s going on.
“Our game volume leveraging AI has grown 50% quarter by quarter. We’re seeing some of these experiences now become AI-driven hits. Since Q2, the time we estimate that’s being spent with AI tools, and that includes Build Studio Assistant and external AI with MCP, has tripled amongst our top creators,” he said.
He said that daily active users of MCP Server has increased nearly five times from the previous quarter. MCP is the way people can connect their own external frontier models to Roblox.
“Over the last month, more than 80% of the top 100 games, when we rank by hours, used AI for creation, and we’ve seen two titles created almost exclusively with AI hit the top 20 by concurrent players during Q3,” said Baszucki.
Top games include Break In, Steal an Egg, and Hudson Valley Disposal.
“There’s also an inflection point going on in our ad systems as more devs are using ads to buy traffic,” he said.
The company said monetization headwinds continued in the quarter, particularly among younger players in the U.S.
Announced at the Roblox Developer Conference, Roblox Everywhere is a framework to allow creators and Roblox to publish directly in app stores in two phases. In phase one, launching in the first half of 2027, Roblox will directly curate and publish select top titles as standalone apps in major app stores. In phase two, Roblox plans to allow any creator to generate a standalone binary directly within their creator portal and submit it on their own to the app store of their choice.
Roblox said revenue for the quarter was $1.6 billion, up 16% year-over-year, and bookings were $1.7 billion, surpassing the high end of our guidance range, and down 12% year-over-year . While bookings were down 12% year-over-year, reflecting a comparison to the extraordinary growth experienced in 2025, Q3 bookings were up over 50% on a two-year basis. In Q3, operating cash flow was $395 million and free cash flow was $364 million. Daily active users (DAUs) grew 12% quarter-over-quarter to 138 million, and hours engaged (hours) reached nearly 34 billion, up 17% quarter-over-quarter.
Users & Engagement. In Q3, DAUs were 138 million, down 9% year-over-year, and Hours reached nearly 34 billion, down 15% year-over-year, as the firm lapped difficult comparisons to the growth Roblox experienced in 2025. On a two-year basis, underlying growth remained very strong, with DAUs and hours played up 55% and 63%, respectively. International growth outperformed the broader platform. In India, DAUs grew 37% and Hours grew 28% year-over-year, while in Japan, DAUs rose 33% and Hours increased 22% year-over-year.
Monetization. Bookings per hours played grew approximately 4% year-over-year globally and 2% year-over-year in the U.S. and Canada, improving relative to year-over-year trends in Q2’26. Similar to Q2, monetization trends for younger U.S. cohorts remained challenged, due to difficult prior-year comparables, partially offset by realized improvements from updates to our RFY algorithm. Average monthly unique payers (MUPs) totaled 30 million, down 16% year-over-year, though, average bookings per MUP increased 5% year-over-year, demonstrating improvement in spending among active payers.