Read from Dexerto, Roblox now loosing money too:
Roblox has admitted that a lack of breakout hit games contributed to a disappointing quarter, as the company has now lost around $70 billion in market value over the last year following a 70% drop in its share price.
The gaming platform released its latest earnings results on July 31, revealing that user growth has continued to slow after years of rapid expansion. Executives said one of the biggest reasons was that there simply weren't enough viral experiences keeping players engaged.
The results come as Roblox shares have fallen roughly 70% over the previous 12 months, wiping tens of billions of dollars from the company's valuation.
According to Roblox, daily active users fell to 123 million during the second quarter, down from a peak of 152 million in the third quarter of 2025.
The company also reported that 'bookings', a key measure of player spending, grew by just 8% year over year after previously posting much stronger growth.
During its earnings report, Roblox said weaker engagement was partly caused by a shortage of viral games, with players instead spending more time on experiences that generate less revenue for the platform.
"We attribute the unforeseen monetization shortfall to a greater-than-expected shift of engagement from high monetizing 2025 vintage viral games to a combination of new and evergreen experiences with lower hourly monetization," the company's CFO Naveen K. Chopra stated.
"This underlying mix shift was compounded by changes in our recommendation algorithm, which optimizes for long-term retention and is, therefore, providing more impressions for highly retentive games at the expense of near-term monetization."
The company also declined to provide full-year financial guidance, signaling uncertainty over how the rest of 2026 will play out.
Roblox has admitted that a lack of breakout hit games contributed to a disappointing quarter, as the company has now lost around $70 billion in market value over the last year following a 70% drop in its share price.
The gaming platform released its latest earnings results on July 31, revealing that user growth has continued to slow after years of rapid expansion. Executives said one of the biggest reasons was that there simply weren't enough viral experiences keeping players engaged.
The results come as Roblox shares have fallen roughly 70% over the previous 12 months, wiping tens of billions of dollars from the company's valuation.
According to Roblox, daily active users fell to 123 million during the second quarter, down from a peak of 152 million in the third quarter of 2025.
The company also reported that 'bookings', a key measure of player spending, grew by just 8% year over year after previously posting much stronger growth.
During its earnings report, Roblox said weaker engagement was partly caused by a shortage of viral games, with players instead spending more time on experiences that generate less revenue for the platform.
"We attribute the unforeseen monetization shortfall to a greater-than-expected shift of engagement from high monetizing 2025 vintage viral games to a combination of new and evergreen experiences with lower hourly monetization," the company's CFO Naveen K. Chopra stated.
"This underlying mix shift was compounded by changes in our recommendation algorithm, which optimizes for long-term retention and is, therefore, providing more impressions for highly retentive games at the expense of near-term monetization."
The company also declined to provide full-year financial guidance, signaling uncertainty over how the rest of 2026 will play out.
