Roblox (RBLX) - Q3 2025 Earnings Call
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Call Details
Call Title: Roblox Q3 2025 Earnings Call
Date Held: October 30, 2025
Management Team Members Present:
David Baszucki - Co-founder and Chief Executive Officer
Naveen Chopra - Chief Financial Officer
Stephanie Notany - Head of Investor Relations
Call Summary
Financial Performance
Roblox reported $1.36 billion in revenue for Q3 2025, reflecting a 48% year-on-year increase. This growth was attributed to ongoing engagement and popularity of new and existing experiences on the platform.
Q3 bookings reached $1.92 billion, totaling an impressive 70% growth year-on-year. Naveen Chopra indicated, “Bookings growth remained north of 40%” in many regions, signifying broad success across various markets.
Daily active users (DAUs) peaked at 151.5 million, showcasing a 70% increase year-on-year, with particular strength showcased in the APAC region which grew 108% year-on-year.
Hours of engagement surged to 39.6 billion, which is a 91% increase from the previous year, demonstrating high retention and user interest across all demographic sectors.
The company saw a substantial rise in monthly unique payers, reaching 35.8 million, marking an 88% increase year-on-year. The significant upfront investment in DevEx also hit a new record at $427.9 million, increasing 85% year-on-year.
Guidance
Naveen Chopra emphasized cautious optimism for future growth, noting, “The reality situation is that bookings have grown faster than our ability to deploy the appropriate growth investments,” indicating potential short-term margin compression as they catch up with demand.
Looking to 2026, the company highlighted the importance of their upcoming technological launches, stating that the momentum seen in Q3, paired with the new technologies being rolled out, should aid in sustaining double-digit growth, despite headwinds from increased competition and regulatory costs.
The CFO mentioned that while they are not providing specific guidance for 2026 yet, they expect “tailwinds from the momentum” currently observed but also acknowledged the potential impact of their new safety policies on near-term engagement.
Capital Allocation
Roblox plans to continue investing in infrastructure and developer exchange (DevEx) benefits, with a commitment to prioritizing safety and genre expansion. Naveen stated that “you’re not seeing year-over-year margin expansion in Q4 based on our guidance” due to these investments.
There will also be a significant degree of capital expenditure (CapEx) expected, which implies investment will remain high relative to past years. Naveen clarified, “expect similar levels of CapEx in 2026,” to further support their growth objectives.
CEO Baszucki highlighted the importance of maintaining long-term convictions about the sustainability of their creator ecosystem, emphasizing the goal of keeping creator earnings at an attractive level as vital to their ecosystem health.
Macro & Demand Trends
CEO Baszucki noted the vast opportunity that exists within the gaming industry, stating, “We continue to be enormously bullish as we roll out our tech and we expand genres,” reiterating that Roblox is poised to capture greater market share.
The expansion of the platform’s user base into older demographics was particularly noted, with **DAUs aged 13 and up growing by 89% year-on-year, suggesting a successful strategy in grooming a diverse user base.
Notably, the company is seeing strong international growth, especially in emerging markets like India and Indonesia, the latter showing 804% growth year-on-year in bookings, showcasing robust user engagement in these regions.
AI Trends
Roblox is significantly investing in AI capabilities, claiming to run over 400 AI systems within the company. Baszucki shared that these efforts are foundational for upcoming features and enhancements to user safety and content discovery.
“We believe there’s a wonderful opportunity to share and develop what we believe is going to be the industry standard in communication for social and mobile apps,” remarked Baszucki, pointing to the role of AI in enhancing user safety.
The ongoing use of AI for safety enhancements is particularly noted, including AI-based facial age estimation, which is being adopted as an industry-wide standard for communication on the platform.
Product Updates
The company is continuously investing in its tech landscape with developer tools and capabilities, including the successful unveiling of tools during the recent RDC meeting aimed at enhancing gaming diversity and performance.
Upcoming features such as server authority and custom matchmaking systems are expected to dramatically improve the gaming experience, especially in competitive genres like shooters and sports.
The foundation of new partnerships and the development of its IP platform were also emphasized, which aim to create synergies between IP owners and creators, bolstering Roblox’s creator ecosystem.
NOTABLE QUOTES
“Our platform and our creator ecosystem is healthier than it has ever been.” - David Baszucki
“We estimate now that 3.2% of global gaming bookings or revenue is going through Roblox, and that’s up from 2.3% last year.” - David Baszucki
“Bookings growth remained north of 40%.” - Naveen Chopra
“We will continue to have strong conviction for our long-term vision and will continue to be more diligent about investing in this innovation.” - David Baszucki
“There will also be potential headwinds, obviously from the tough comps and then potentially from some of the new safety policies.” - Naveen Chopra
“We believe as new technology rolls out, it allows us to harvest and use this technology for continued advancements in safety and civility.” - David Baszucki
“We are way ahead of our long-term growth plans.” - Naveen Chopra
“It’s important for us not to look backwards, but instead to look forward to what we believe will be new types of gaming.” - David Baszucki
“We do buy traffic. I don’t know if it shows up in our financial statements, but we very thoughtfully complement that with paid user acquisition.” - David Baszucki
“The data set is enormous,” especially in terms of avatar interactions and immersive experiences, - David Baszucki
Q&A SUMMARY
Q: Matthew Cost (Morgan Stanley), [questioned the future of AI infrastructure and its implications for user experience on Roblox.]
A: David Baszucki highlighted an expansive vision where AI will enable real-time modifications in gaming environments, stating, “The ability to use AI to do real time modification of that world... doing this on everything from a two gig RAM Android device to a high-end gaming PC.”
Q: Brian Peets (BMO Capital Markets), [asked how the company plans to keep creator economics competitive against other platforms.]
A: David Baszucki emphasized that the economic returns for creators go beyond just the DevEx rate, stating, “One needs to multiply the DevEx rate by the volume of users on the platform, by the breadth of the creative tools.”
Q: Eric Sheridan (Goldman Sachs), [sought insights on scaling older age cohorts and aligning investment priorities.]
A: David Baszucki noted the ability to attract older users through viral hits, asserting that “our technology will support sports... and new types of gameplay.”
Q: Jason Basnet (Citigroup), [inquired about forecasts for 2026 growth in light of current results.]
A: Naveen Chopra indicated that it is too early for precise guidance, stressing that “there are some important things to consider as we look at expectations for bookings growth next year.”
Q: Kerry Carpenter (JP Morgan), [desired insights on advertising opportunities for the company.]
A: Naveen Chopra expressed cautious optimism, stating they are “bullish about the long-term opportunities” in advertising while wanting to ensure the right integrations for creators and advertisers.
Q: Ken Gorelsky (Wells Fargo), [questioned about diversity in game genres and discovery.]
A: David Baszucki responded that their discovery system optimally supports new genres and highlighted their commitment to long-term health and ecosystem diversity.
Q: Benjamin Black (Deutsche Bank), [asked if Roblox has developed a data moat in content discovery.]
A: David Baszucki confirmed the unique data advantages they have, noting that “the data set is enormous” and they are leveraging it for smarter recommendations.
Q: Omar Dusokhi (Bank of America), [pondered why Roblox doesn’t use advertising for user growth in difficult years.]
A: David Baszucki clarified they do engage in paid user acquisition and are poised to enhance this aspect in the future, stating, “There’s an opportunity for us to expand paid acquisition.”
Q: Clark Lampin (BTIG), [asked about the growth of developers alongside user growth.]
A: David Baszuckiremarked on the health of their creator ecosystem, indicating that the growth trajectory aligns well with user increases, while Naveen discussed maintaining upcoming investment yields.
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