The Q4 guidance for negative free cash flow and continued bookings decline signals that safety-related headwinds and investment spending will persist into early 2027. Monitor Q4 actuals for whether the bookings decline stabilizes and whether free cash flow turns positive as capex normalizes.
Price Chart
Executive Summary
Roblox reported Q3 2026 revenue of $1.572B, up 16% YoY, but bookings declined 12% YoY to $1.697B as the company lapped difficult comparisons from 2025. Q4 guidance calls for bookings to decline 10-15% YoY and free cash flow to turn negative, reflecting continued headwinds from safety initiatives and investment spending.
Key Financial Metrics
Key Facts
- Q3 2026 revenue $1.572B, up 16% YoY from $1.360B
- Q3 2026 bookings $1.697B, down 12% YoY from $1.922B
- Q3 2026 GAAP EPS -$0.32 vs consensus -$0.42 (beat)
- Q3 2026 DAUs 138M, down 9% YoY; Hours 34B, down 15% YoY
- Q4 2026 guidance: bookings decline 10-15% YoY, free cash flow negative $(190)M to $(105)M
- Full year 2026 guidance: revenue growth 20-25%, bookings growth 8-12%
- Repurchased 4.4M shares for ~$200M in Q3; $2.4B remaining authorization
- Consolidated net loss $230M vs $258M in Q3 2025; Adjusted EBITDA $138M vs $46M
- Operating cash flow $395M vs $546M in Q3 2025; free cash flow $364M vs $443M
Financial Impact
Bookings declined 12% YoY to $1.697B; Q4 guidance implies bookings decline 10-15% YoY and negative free cash flow
Risk Factors
- Bookings declining for two consecutive quarters (Q3 actual -12%, Q4 guided -10% to -15%)
- Free cash flow turning negative in Q4 due to capex timing shift
- DAUs declining 9% YoY as safety age-check rollout continues to impact user acquisition
- MUPs down 16% YoY to 30M, indicating payer base contraction
- document contains text addressed to automated readers
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-068235 |
| Document: 0001628280-26-068235-index-headers.html | 0001628280-26-068235 |
| Document: 0001628280-26-068235-index.html | 0001628280-26-068235 |
| Document: 0001628280-26-068235.txt | 0001628280-26-068235 |
| 8-K Data (Synthetic) | 0001628280-26-068235 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $46.99 | awaiting T+20 | awaiting T+20 | $42.99 (+8.51%) |
Oct 23, 2026 9d ago | Institutional Cluster | $52.89 | awaiting T+20 | awaiting T+20 | $42.99 (−18.72%) |
Sep 9, 2026 7w ago | Insider Cluster | $44.88 $45.52 | ▲ +1.43% | ▼ −0.70% | $42.99 (−4.21%) |
Sep 2, 2026 8w ago | Insider Cluster | $41.51 $44.12 | ▲ +6.29% | ▲ +7.47% | $42.99 (+3.57%) |
Sep 1, 2026 8w ago | Insider Cluster | $41.21 $43.00 | ▲ +4.34% | ▲ +4.50% | $42.99 (+4.32%) |
Aug 26, 2026 9w ago | Insider Cluster | $38.15 $48.83 | ▲ +27.99% | ▲ +28.50% | $42.99 (+12.69%) |
Aug 25, 2026 9w ago | Insider Cluster | $37.56 $48.83 | ▲ +30.01% | ▲ +29.86% | $42.99 (+14.46%) |
Aug 24, 2026 9w ago | Insider Cluster | $39.12 $48.99 | ▲ +25.23% | ▲ +24.98% | $42.99 (+9.89%) |
Jul 7, 2026 16w ago | Insider Cluster | $55.12 $36.19 | ▼ −34.34% | ▼ −37.62% | $42.99 (−22.01%) |
May 27, 2026 22w ago | Insider Cluster | $46.83 $47.56 | ▲ +1.56% | ▲ +4.70% | $42.99 (−8.20%) |
US Market Status
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