Roblox Stock Nosedives After Company Says It Expects To Make $1 Billion Less This Year
Overview & Key Takeaways
Roblox's stock price took a dramatic hit today, May 1, following the company's latest earnings report during which it said new user growth slowed due to the recently released age-check changes. The company also massively decreased its upcoming revenue projections.
Although Roblox's average daily active users jumped by nearly 34 million compared to the same period last year and total hours engaged surged by 43% year-over-year, "bookings growth decelerated" compared to 2025. Additionally, Roblox was banned in Russia in December 2025, and that had an impact, the company said. What's more, management said Roblox's growth was tempered by "greater-than-expected headwinds" related to the new age-check system. New user acquisition was slowed, too.
All of this, combined with a revised download revenue projection for the year of about $1 billion, apparently spooked investors, with Roblox's stock sliding by more 18% today, bringing the company's shares down to around $46. This is down from a 52-week high of about $150.
Roblox's stock price took a dramatic hit today, May 1, following the company's latest earnings report during which it said new user growth slowed due to the recently released age-check changes. The company also massively decreased its upcoming revenue projections.
Although Roblox's average daily active users jumped by nearly 34 million compared to the same period last year and total hours engaged surged by 43% year-over-year, "bookings growth decelerated" compared to 2025. Additionally, Roblox was banned in Russia in December 2025, and that had an impact, the company said. What's more, management said Roblox's growth was tempered by "greater-than-expected headwinds" related to the new age-check system. New user acquisition was slowed, too.
All of this, combined with a revised download revenue projection for the year of about $1 billion, apparently spooked investors, with Roblox's stock sliding by more 18% today, bringing the company's shares down to around $46. This is down from a 52-week high of about $150.
Roblox rolled out the new age-check system, along with other updates, seemingly in response to a wave of negative press and lawsuits from multiple states that said Roblox is not doing enough to protect children. In its earnings report, Roblox said while it's facing challenging times today, the "long-term benefits" of its new age-check system and other safeguards are "innumerable."
"While our aggressive push to enhance safety lowers our expectations for topline growth in 2026, it makes our platform fundamentally better and amplifies the long-term growth potential of Roblox through more effective content targeting, tailored communication experiences, and improved community sentiment," the company said.
In other news, a native version of Roblox just launched on PS5, adding faster load times and other features that take advantage of the console's increased horsepower. Additionally, the 99 Nights in the Forest game that's hosted on Roblox just got a movie deal.
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