Insights into Roblox's Upcoming Earnings
Roblox (NYSE:RBLX) is gearing up to announce its quarterly earnings on Thursday, 2025-07-31. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Roblox will report an earnings per share (EPS) of $-0.36.
The market awaits Roblox's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Past Earnings Performance
During the last quarter, the company reported an EPS beat by $0.08, leading to a 7.38% increase in the share price on the subsequent day.
Here's a look at Roblox's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.40 | -0.45 | -0.39 | -0.39 |
| EPS Actual | -0.32 | -0.33 | -0.37 | -0.32 |
| Price Change % | 7.000000000000001% | -1.0% | -1.0% | 0.0% |
Performance of Roblox Shares
Shares of Roblox were trading at $118.33 as of July 29. Over the last 52-week period, shares are up 208.19%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on Roblox
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Roblox.
Analysts have given Roblox a total of 28 ratings, with the consensus rating being Outperform. The average one-year price target is $103.75, indicating a potential 12.32% downside.
Analyzing Analyst Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of and Roblox, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
Peers Comparative Analysis Summary
In the peer analysis summary, key metrics for and Roblox are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Roblox | Outperform | 29.19% | $810.48M | -80.83% |
Key Takeaway:
Roblox ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks at the top for Return on Equity. Overall, Roblox is positioned differently across the metrics compared to its peers.
Get to Know Roblox Better
Roblox operates a free-to-play online video game platform with about 85 million daily active users. This platform has spawned a virtual universe and a Roblox economy based on the Robux currency. The platform houses millions of games from a wide range of creators spanning from young gamers themselves to professional development studios. Roblox offers creators the tools, publishing abilities, and platform for their games, enabling anyone to create a game. Creators earn money when gamers make optional in-game purchases within their games and by offering space for real-world advertising, and Roblox earns revenue primarily by taking a cut of these earnings.
Unraveling the Financial Story of Roblox
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Roblox's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 29.19%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -20.77%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Roblox's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -80.83%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Roblox's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.94%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Roblox's debt-to-equity ratio stands notably higher than the industry average, reaching 5.81. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Roblox visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
