0001628280-26-028904
SEC filingRevenue grew 39% YoY to $1.442B, driven by bookings growth and higher consumable mix, but net loss widened due to legal settlement costs.
In Q1 2026, Roblox reported revenue of $1.442B, up 39% YoY from $1.035B, driven by higher amortization of prior period deferred revenue and increased revenue from current period bookings. The revenue mix shifted toward consumable virtual items, which accounted for 12% of virtual item revenue (vs 9% in Q1 2025), accelerating revenue recognition. Bookings climbed 43% to $1.731B, primarily due to a 58% increase in average daily unique paying users to 1.9 million from 1.2 million.
Cost of revenue grew 31% to $294M, largely from higher payment processing fees tied to bookings growth and increased consumable mix. Developer exchange fees surged 50% to $423M, outpacing bookings growth due to the September 2025 rate increase (+8.5%), the Creator Rewards Program launch, and differential Robux pricing. Infrastructure and trust & safety expenses rose 34% to $324M, driven by data center and hosting costs. R&D increased 13% to $422M on headcount growth and stock-based compensation. G&A jumped 76% to $209M, including $57M in legal settlement accruals for youth-related consumer protection matters, plus higher professional services and personnel costs. Sales and marketing rose 33% to $64M on advertising spend.
Operating loss widened to $294M (20.4% of revenue) from $255M (24.6%), reflecting non-recurring legal costs. Net loss was $248M vs $216M. Adjusted EBITDA improved to $99M from $58M, excluding stock-based compensation ($275M), legal settlements ($57M), depreciation ($61M), and other items. Free cash flow grew to $596M from $427M, supported by strong cash collections from bookings.
Roblox operates as a single segment, with revenue derived entirely from the platform. Performance is driven by user engagement and monetization metrics: DAUs (132 million), hours engaged, and ABPDAU ($0.15). The shift toward consumable virtual items and differential Robux pricing are key mix dynamics affecting revenue recognition and payment processing costs.
Management plans to continue investing in creator community, AI, safety, and infrastructure. The upcoming launch of Roblox Kids and Roblox Select account types (June 2026) may impact engagement and monetization. The Developer Exchange rate increase effective June 2026 for eligible U.S. users 18+ is expected to further boost creator earnings. Capital expenditures will focus on GPU infrastructure for content sophistication. No specific financial guidance was provided, but the company expects increasing investment in R&D, sales & marketing, and infrastructure to support long-term growth, with operating leverage expected over time.
As of March 31, 2026, Roblox held $1,188M in cash and cash equivalents, $2,011M in short-term investments, and $2,966M in long-term investments, totaling $5,989M in cash and investments (Note 5). Total assets were $9,827M, up from $9,557M at year-end 2025. Deferred revenue increased to $6,805M ($4,425M current, $2,380M non-current), reflecting continued growth in bookings. Stockholders' equity was $411M, including $5,744M in additional paid-in capital offset by a $5,307M accumulated deficit.
In January 2026, the Company executed leases for two additional buildings at its headquarters, adding 352,192 sq ft with total incremental base rent of approximately $403M (Note 4). These leases have terms of about 13 years and had not yet commenced as of March 31, 2026. For purchase obligations, the Company noted no material changes in non-cancellable commitments for data center hosting, software, and payment processors. Legal contingencies include $57M accrued for state settlement agreements (Note 8), with additional unaccrued commitments for public service campaigns and platform changes.
Capital expenditures for Q1 2026 were $33M for property and equipment, with an additional $6M in non-cash additions (via accounts payable). The Company did not repurchase any shares or pay dividends. Long-term debt consists of $1.0B principal of 3.875% Senior Notes due 2030, net carrying $993M, with interest expense of $10M per quarter. No new debt was issued or repaid during the period.
The Company operates as a single reportable segment (Note 15). Revenue by region: United States and Canada 58% (US 55%), Europe 20%, Asia-Pacific 12%, and Rest of World 10%. Durable virtual items comprised 88% of virtual item revenue, consumable 12% (Note 3). No single country other than the US exceeded 10%.