Roblox Corporation (RBLX.US) saw its shares surge by up to 20% in after-hours trading on Thursday, driven by better-than-expected fourth-quarter 2025 results. The company reported Q4 revenue of $1.415 billion, a 43% increase compared to the same period last year. Net losses widened by nearly 44% to $316 million, up from $220 million a year earlier. Loss per share came in at $0.45, beating market expectations of a $0.48 loss per share.
Bookings rose 63% year-over-year to $2.22 billion, surpassing the consensus estimate of $2.05 billion. Average daily active users (DAUs) reached 144 million, a 69% increase from the prior year and higher than the anticipated 138 million. At the time of reporting, Roblox shares were up nearly 9% in after-hours trading.
Looking ahead, Roblox expects Q1 2026 bookings to be in the range of $1.69 billion to $1.74 billion, exceeding the market forecast of $1.68 billion. The company also announced that, due to the "inherent volatility" of its business, it will no longer provide annual financial guidance starting in 2027. Instead, it will focus on issuing quarterly forecasts.
Roblox has faced external criticism over allegations that it exposes underage users to risks, with several lawsuits filed on behalf of children who experienced sexual exploitation on the platform. In response, the company began rolling out mandatory age verification for users wishing to access communication features in Australia, New Zealand, and the Netherlands by the end of the fourth quarter. As of now, 60% of daily users in those markets have completed age verification, compared to 45% globally.
The company noted that the global completion of age verification in January had a "mid-single-digit percentage negative impact" on user engagement growth and a "low-single-digit percentage negative impact" on bookings growth. However, Roblox emphasized that the "strategic upside is significant." The company stated, "Accurate age data unlocks long-term opportunities, allowing us to tailor features and content, enhance safety and civility, and drive organic growth in user engagement."
Age verification results revealed that Roblox's user base is younger than previously indicated by self-reported data. Among daily active users, 38% are aged 13–17, 35% are under 13, and 27% are 18 or older. The company described its strong presence among younger users as a "valuable strategic asset."
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