Roblox (RBLX.US) Q4 performance and user growth exceeded expectations, highlighting the trend of younger users and long-term strategic layout.

Thanks to better-than-expected performance in the fourth quarter of 2025, Roblox (RBLX.US) saw its stock surge by 20% after hours on Thursday. The financial report shows that Roblox's Q4 revenue was $1.415 billion, a 43% increase year over year. Net loss was $316 million, an increase of nearly 44% compared to the net loss of $220 million in the same period last year; loss per share was 45 cents, better than the market's expected loss of 48 cents per share. Bookings increased by 63% year over year to $2.22 billion, exceeding market expectations of $2.05 billion. The average daily active users (DAUs) were 144 million, a 69% increase compared to the previous year, surpassing the market's expected 138 million. As of the time of writing, Roblox's stock rose nearly 9% after hours on Thursday. Roblox expects bookings for the first quarter of 2026 to be between $1.69 billion and $1.74 billion, higher than the market's expected $1.68 billion. Additionally, the company announced that due to the "inherent volatility in the business," they will no longer provide annual performance guidance starting in 2027. Instead, the company stated that they will focus on providing quarterly guidance. Roblox has faced criticism for allegedly putting underage users at risk, with several lawsuits filed by children allegedly subjected to exploitation on the gaming platform. Roblox stated that at the end of the fourth quarter, they started implementing mandatory age verification for users wishing to use the communication features in Australia, New Zealand, and the Netherlands. The company said that 60% of daily users in these markets had completed age verification, compared to 45% globally. Roblox noted that the promotion of age verification (which was completed globally in January) had a "mid-single-digit negative impact" on user engagement growth and a "low single-digit negative impact" on bookings growth. However, the company added that there is "significant upside potential at a strategic level." The statement read, "Accurate age data unlocks long-term opportunities, allowing us to tailor features and content, enhance safety and civility, driving organic user engagement growth." According to the results of age verification, Roblox's user base is younger than previously believed based on self-reported data. Among daily active users, 38% are aged 13-17, 35% are under 13, and 27% are 18 and over. The company stated that its size in the young user segment is a "valuable strategic asset."