Roblox’s algorithm, safety changes dent bookings forecast; shares slump
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
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
July 30 : Roblox forecast a steeper-than-expected drop in third-quarter bookings on Thursday as a shift toward lower-spending games and new safety measures weigh on in-app purchases, sending its shares down 14 per cent in after-hours trading.
The company said bookings were impacted after changes to its recommendation algorithm steered younger users toward newer and evergreen games that generate less revenue per hour than the viral hits that drove spending last year.
“Monetization weakness is likely to continue,” Chief Financial Officer Naveen Chopra said on a post-earnings call, adding the changes would improve long-term retention and ultimately offset the near-term hit to bookings.
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.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
The company, which built its business around younger players during the pandemic, 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.
“Investments in AI, content diversification, long-term retention, and safety, though creating near-term friction, position us to maximize our share of the global gaming market,” Chopra said.
Roblox’s daily active users (DAUs) fell 7 per cent sequentially to 123 million in the second quarter, but were up 10 per cent from a year earlier.
Bookings for the quarter rose 8 per cent to $1.56 billion, in line with analysts’ estimates.
The company has focused on attracting older users and expanding internationally to diversify.
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
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
