Roblox shares dropped 20% after cutting FY2026 bookings outlook to $7.33‑$7.6 billion, below prior $8.28‑$8.55 billion and consensus $8.38 billion.
Q1 bookings were $1.7 billion (vs $1.74 billion estimate); revenue $1.4 billion (+39% YoY) missed $1.42 billion consensus; adjusted EPS –$0.35 beat –$0.41.
Daily active users fell to 132 million and hours engaged to 31 billion, missing estimates of 143.8 million and 33.68 billion respectively.
Company generated $596 million free cash flow (+40% YoY) and launched a $4.99‑monthly Roblox Plus subscription amid age‑verification rollout and Russia ban impacts.