Roblox(RBLX.US)Q4 Performance and User Growth Both Surpassed Expectations, Highlighting the Trend of Younger Users and Long-term Strategic Planning

Thanks to better-than-expected Q4 performance in 2025, Roblox (RBLX.US) surged up to 20% in after-hours trading on Thursday. The earnings report showed that Roblox’s Q4 revenue was $1.415 billion, up 43% year-over-year. Net loss was $316 million, an increase of nearly 44% from the net loss of $220 million in the same period last year; earnings per share (EPS) were a loss of 45 cents, better than the market expectation of a loss of 48 cents per share. Bookings increased 63% year-over-year to $2.22 billion, surpassing the market expectation of $2.05 billion. Daily active users (DAUs) averaged 144 million, a 69% increase year-over-year, exceeding the market expectation of 138 million.

As of press time, Roblox was up nearly 9% in after-hours trading on Thursday.

Roblox expects first-quarter 2026 bookings to be between $1.69 billion and $1.74 billion, above the market expectation of $1.68 billion. Additionally, the company announced that due to “inherent volatility” in its business, it will no longer provide annual guidance starting in 2027. Instead, the company stated it will focus on providing quarterly guidance.

Roblox has faced criticism for allegedly putting underage users at risk, with multiple lawsuits from representatives of children who have experienced sexual exploitation on the platform. Roblox stated that by the end of Q4, it had begun implementing mandatory age verification for users in Australia, New Zealand, and the Netherlands who wish to use communication features. The company said that 60% of daily users in these markets had completed age verification, while the global rate of daily users who completed age verification was 45%.

Roblox said that the rollout of age verification (completed globally in January) caused a “mid-single-digit percentage negative impact” on user engagement growth and a “low-single-digit percentage negative impact” on bookings growth. However, the company added that “there is significant upside potential at the strategic level.” In its statement, the company wrote: “Accurate age data unlocks long-term opportunities, allowing us to tailor features and content, improve safety and civility, and drive organic user engagement growth.”

Roblox stated that age verification results show its user base is younger than previously indicated by self-reported data. Among daily active users, 38% are between 13 and 17 years old, 35% are under 13, and 27% are over 18. The company described its presence among younger users as a “valuable strategic asset.”