Roblox Shares Drop 25% After Q1 Miss, Forecast Cut

Roblox shares tumbled about 25 percent in Friday's premarket trading after the company reported weaker-than-expected first-quarter user growth and sharply cut its full-year bookings forecast.

The online gaming platform, which ended Thursday with a market capitalization of roughly $39.55 billion, revised its 2026 bookings outlook to $7.33 billion to $7.6 billion, down from prior guidance of $8.28 billion to $8.55 billion. Bookings represent revenue from purchases of the platform's virtual currency, Robux, used in user-generated games. First-quarter daily active users reached 132 million, reflecting 26 percent year-over-year growth that trailed Wall Street expectations of around 44 percent. Hours engaged and bookings also missed estimates, though free cash flow of $596 million exceeded forecasts.

Executives attributed the shortfalls primarily to recent safety enhancements, including age-based accounts, expanded age verification requirements and restrictions on communication features for unverified users. In its shareholder letter, Roblox stated that "growth was tempered by greater-than-expected headwinds from our age-check rollout, which restricted on-platform communication for...