Roblox Stock Before Q2 Earnings: Buy Now or Wait for Results?

Roblox Corporation RBLX is scheduled to release second-quarter 2025 results on Thursday. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 22%.

RBLX’s Q2 Estimate Revisions

The Zacks Consensus Estimate for second-quarter 2025 loss per share is pegged at 35 cents. In the prior-year quarter, the company reported an adjusted loss per share of 32 cents. The consensus mark has remained unchanged over the past seven days. 

The Zacks Consensus Estimate for revenues is pegged at $1.27 billion, indicating a 33.4% rise from the year-ago quarter's reported figure.

Roblox’s Earnings Surprise History

RBLX has an impressive record of beating on earnings. Its earnings surpassed the consensus mark in each of the trailing four quarters, with an average surprise of 16.6%, as shown in the chart below.

Q2 Earnings Whispers for RBLX

Our proven model does not conclusively predict an earnings beat for Roblox this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

RBLX’s Earnings ESP: Roblox has an Earnings ESP of -0.09%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

RBLX’s Zacks Rank: The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors That Might Have Influenced RBLX’s Q2 Performance

Roblox’s top-line performance is likely to have been supported by robust growth in both user engagement and monetization initiatives. Robust daily active users across key markets, including the United States and Canada, as well as rapid adoption in emerging regions like India and Japan, are likely to have aided the company’s performance. 

RBLX's monetization strategies might have also contributed to second-quarter revenue gains. Initiatives like regional pricing, automatic price optimization and the introduction of more diversified payment methods (such as web and gift card transactions) are expected to have gained traction. These efforts have been designed to enhance affordability in price-sensitive markets while improving creator earnings and platform monetization. In first-quarter 2025, developers using price optimization reported a 4% boost in median earnings. Top creators have continued to generate seven-figure annual income. This rising creator economy is likely to have been fuelling higher platform activity and spending, which might show up in the second-quarter 2025 results.

Roblox’s strategic push into advertising and branded content might have served as an incremental tailwind. The company has been integrating with Google’s ad ecosystem while signing brand deals with major names such as NASCAR, PGA Tour and Chipotle. These activations are not only expanding revenue streams but also enhancing user engagement by introducing real-world relevance to virtual experiences. With brand-driven campaigns becoming more frequent, the impact of advertising — though still early stage — might have begun to show more meaningfully in the second-quarter performance.

While revenue momentum appears strong, Roblox’s bottom line might have remained under pressure due to ongoing reinvestments and structural cost headwinds. Additionally, while AI-driven efficiencies are being implemented across moderation and infrastructure, overall personnel and infrastructure costs remain elevated relative to revenues. Roblox has been investing heavily in new AI and immersive technology capabilities, including 3D asset generation and dynamic in-game experiences, which, though promising, are unlikely to deliver near-term margin expansion. As such, despite strong revenues, margin improvement in the second quarter might have been modest, indicating the company’s long-term growth priorities over short-term profitability.

Roblox Stock’s Price Performance & Valuation

RBLX’s shares have gained 185% in the past year compared with the industry’s rise of 32.3%. In the same time frame, stocks like Electronic Arts Inc. EA, Monarch Casino & Resort, Inc. MCRI and Accel Entertainment, Inc. ACEL have underperformed RBLX.

RBLX Price Performance

The company is trading at a premium. Roblox is currently trading at a forward 12-month price-to-sales (P/S) of 12.87X, well above the industry average. The company is trading at a premium compared with other industry players like Electronic Arts, Monarch Casino & Resort and Accel Entertainment.

Roblox’s P/S (F12M)

Investment Thoughts on RBLX

Roblox’s strong top-line momentum, driven by growing user engagement, platform monetization efforts and expanding advertising initiatives, makes it an attractive long-term hold for current investors. The company continues to innovate and deepen its creator ecosystem, laying the groundwork for sustainable growth. However, persistent bottom-line pressures from reinvestments in AI, infrastructure and immersive technologies indicate near-term profitability may remain elusive. Moreover, with the stock already trading at a premium valuation and having significantly outperformed peers, new investors might be better off waiting for a more favorable entry point, especially with upcoming earnings introducing potential volatility.

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This article originally published on Zacks Investment Research (zacks.com).

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