Roblox shares slump 17% as user growth and guidance miss expectations

Investing.com -- Roblox Corp ( RBLX ) shares slumped more than 17% in premarket trading Friday following the release of third-quarter results that showed daily active users below Wall Street projections.

The gaming platform reported a loss per share of $0.32 for the third quarter, beating the analyst estimate of a $0.43 loss. Revenue reached $1.57 billion, surpassing the consensus estimate of $1.46 billion and marking a 16% increase year-over-year.

Daily active users totaled 138 million in the third quarter, falling short of the 145.77 million estimate. Hours engaged on the platform reached 34 billion, exceeding the estimate of 32.99 billion. Bookings came in at $1.70 billion, down 12% from the prior year but above the $1.63 billion estimate.

The company generated $364 million in free cash flow during the quarter. Cash and cash equivalents stood at $1.09 billion, compared to the estimate of $875.2 million.

For the fourth quarter of 2026, Roblox projected bookings between $1.89 billion and $2.00 billion, below the consensus estimate of $2.01 billion. The company expects revenue of $1.47 billion to $1.58 billion, compared to the estimate of $1.56 billion. The consolidated net loss is forecast at $363 million to $423 million, wider than the estimated loss of $295.9 million.

"Our Q3 financial results came in ahead of our guidance for revenue, bookings, and cash flow," said David Baszucki, founder and CEO of Roblox. "AI is fundamentally reshaping the gaming industry, driving a step function change in the pace at which content can be created."

Vahid Karaahmetovic contributed to this report.