Roblox's DAU Momentum Builds: Is Monetization the Next Step?

Roblox Corporation RBLX continues to show strong traction in its user base, reinforcing the position as a leading immersive platform. In the second quarter of 2025, daily active users (DAU) surged 41% year over year to 111.8 million, while total engagement hours jumped 58% to 27.4 billion. Growth was broad-based across geographies and age groups, with particularly strong momentum in APAC (up 76% DAUs) and in users aged over 13 years (up 54%), who now make up more than 64% of the platform’s user base.

On the monetization front, second-quarter bookings climbed 51% year over year to $1.4 billion, driven by both increased engagement and higher spend per user. Monthly unique payers hit a record 23.4 million (up 42% year over year), with a record 4.6 million new payers. Average bookings per payer rose 6%. Premium subscriptions continued to expand, contributing to recurring revenues, while immersive advertising — boosted by initiatives like Rewarded Video ads — gained traction as more brands used Roblox’s 3D environments for marketing. In-experience purchases remained a core revenue driver, with both the number of paying users and average spend increasing.

However, profitability remains constrained as Roblox continues to reinvest heavily in its creator ecosystem. Developer Exchange (DevEx) payouts hit a record $316.4 million in the second quarter, up 52% year over year, reflecting higher engagement and the company’s commitment to its Creator Rewards program. While this strengthens the long-term content pipeline, it also keeps near-term margins under pressure.

The company’s strategy hinges on converting its expanding DAU base into stronger monetization without sacrificing engagement quality. With continued innovation in ad formats, subscription offerings and virtual goods — plus rising traction in high-monetizing genres among older users — Roblox is building the infrastructure to scale monetization over time. The balance between user growth and monetization efficiency will be key in determining whether today’s DAU momentum translates into meaningful earnings growth in the years ahead.

RBLX’s Price Performance, Valuation and Estimates

RBLX’s shares have gained 103.5% in the past six months compared with the industry’s increase of 17%. In the same time frame, shares of other industry players, such as Take-Two Interactive Software, Inc. TTWO and Electronic Arts Inc. EA, have gained 9.2% and 34%, respectively.

With the recent gain, RBLX is priced at a premium relative to its industry. Its forward 12-month price-to-sales ratio of 12.57 is well above the industry average. Meanwhile, Take-Two Interactive and Electronic Arts’ forward 12-month price-to-sales ratios are 5.64 and 5.5, respectively.

The Zacks Consensus Estimate for 2025 loss per share has widened to $1.71 in the past seven days. In 2024, the company reported adjusted loss per share of $1.44. Meanwhile, Take-Two Interactive and Electronic Arts’ earnings in fiscal 2026 are likely to witness growth of 33.7% and 21.1%, respectively.

RBLX currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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