Roblox Corp. (NYSE:RBLX) stock fell in premarket trading Friday after the company reported third-quarter results.
The gaming platform reported a 9% year-over-year decline in daily active users (DAUs) to 138 million and issued a weaker fourth-quarter bookings outlook, weighing on investor sentiment.
Roblox expects fourth-quarter bookings to decline 10% to 15% year over year, citing difficult comparisons and a potential modest impact from the launch of GTA VI.
The company projects fourth-quarter capital expenditures of $380 million, including $140 million shifted from the third quarter. Full-year capital spending is expected to reach $468 million.
Earnings Beat Expectations
Roblox reported a quarterly loss of 32 cents per share, narrower than analysts’ consensus estimate for a loss of 40 cents.
Roblox reported bookings of $1.7 billion, beating Wall Street’s estimate of $1.62 billion. GAAP revenue totaled $1.57 billion.
Roblox reported its highest seasonally adjusted retention since 2021. DAUs among users ages 18 and older rose 18% year over year, while international growth remained strong, led by India at 37% and Japan at 33%.
Bookings exceeded guidance, supported by stronger engagement and retention, although monetization remained challenging among younger U.S. users.
See More: Top Value Stocks
AI Adoption Accelerates
Roblox reported a threefold month-over-month increase in daily AI asset uploads, while AI-enabled games grew 50% sequentially. More than 80% of its top 100 games by hours played used AI.
The company is developing an AI-powered Universal Player to help creators bring PC, console and mobile games onto its platform, integrating multiplayer features, cross-device compatibility, safety tools and its virtual economy.
Roblox Build has supported more than 70,000 game publications and attracted over 500,000 testers. The company plans to launch the platform in the U.S. in December 2026, followed by a global rollout in 2027.
Under its Roblox Everywhere initiative, Roblox plans to increase marketing aimed at users ages 18 and older and release selected games as standalone apps through major app stores in the first half of 2027.
Roblox Reality is targeting early access in the first half of 2027, alongside plans to expand offline and browser-based gaming.
The company aims to capture 10% of the global gaming market and eventually reach 1 billion daily active users, supported by AI tools, Universal Player and Roblox Everywhere.
RBLX Price Action: Roblox shares were down 17.44% at $43.31 during premarket trading on Friday, according to Benzinga Pro data.
Photo via Shutterstock