Roblox forecasts quarterly bookings below estimates as safety features dampen engagement
A boy poses for a photo while holding a game pad in front of a screen displaying the logo of the U.S. children’s gaming platform Roblox, in this illustration taken December 8, 2025. REUTERS/Ramil Sitdikov/Illustration
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July 30 : Gaming platform Roblox forecast quarterly bookings below Wall Street estimates on Thursday, as tougher age-verification measures weigh on onboarding and engagement, sending its shares down about 12 per cent in after-hours trading.
The company has implemented age verification following heightened scrutiny of its child-safety practices, but the added steps have made it harder to sign up and reduced access to certain features that help keep users engaged.
Roblox’s average daily active users (DAU) fell 7 per cent sequentially to 123 million in the second quarter, but were up 10 per cent from a year earlier.
“To date, the short-term impact from Kids and Select on engagement and bookings has been in line with our expectations, and we have seen an increase in age-check penetration in younger cohorts,” the company said.
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Roblox, which allows users to build and explore their own digital worlds on its platform, expects bookings between $1.58 billion and $1.65 billion in the third quarter, compared with estimates of $1.77 billion, according to data compiled by LSEG.
Having built its business around younger players during the pandemic, Roblox has increasingly focused on attracting older users and expanding internationally to diversify growth.
Users over 18 years accounted for 27 per cent of age-verified DAUs in the second quarter, the company said, a particularly valuable group as U.S. users aged 18 and older generate more than 50 per cent higher monetization than users under 18.
Source: Reuters
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