RBLX Q4 Bookings Up 63%: Is the Platform Entering a New Growth Phase?

Roblox Corporation RBLX delivered a standout fourth quarter, with bookings surging 63% year over year to $2.2 billion, raising a key question for investors: Is the platform entering a new and more durable growth phase? The fourth-quarter 2025 performance suggests that this acceleration is not merely the result of a one-off viral hit, but rather a reflection of improving platform fundamentals and broader monetization momentum.

A major driver behind the bookings strength was robust engagement. Daily active users grew 69% year over year, while total engagement hours jumped 88%, indicating that users are spending significantly more time on the platform. Importantly, growth was broad-based across geographies, with APAC bookings nearly doubling and regions such as Japan, India and Indonesia showing sharp adoption gains. This global diversification reduces reliance on any single market and strengthens Roblox’s long-term growth profile.

Another structural tailwind is the platform’s increasing traction with older users. Management highlighted that the 18-plus cohort is growing more than 50% year over year and monetizes roughly 40% better than younger users. Combined with advancements in discovery, AI-driven personalization and expanded genre offerings, Roblox is positioning itself to unlock higher-value engagement over time.

While near-term growth rates may normalize from fourth-quarter 2025’s exceptional level, the combination of expanding payer base, international momentum and improving monetization quality points to a platform that is evolving beyond episodic spikes. Taken together, fourth-quarter 2025’s bookings jump appears less like a peak and more like an inflection toward a new phase of sustainable growth.

Key Competitors: Meta Platforms & Electronic Arts

When looking at Roblox’s growth story, two companies stand out as relevant competitors in the broader space of user engagement and interactive virtual experiences.

Meta Platforms’ META push into metaverse-related products, especially Horizon Worlds and Horizon Quest VR experiences, positions it as a rival to Roblox’s social and creative virtual environment. The company’s strength comes from the massive user base across Facebook, Instagram and Oculus headsets, which it leverages to drive engagement in immersive experiences. While Horizon Worlds has not yet reached Roblox’s scale, Meta’s continued investment in AI, avatars and VR tools makes it a long-term competitor in shaping how users interact in digital spaces.

Electronic Arts EA, through its EA Sports and The Sims franchises, competes for players’ time and spending in virtual worlds, particularly with The Sims 4 and community-created content. While EA is not a direct match for Roblox’s user-generated ecosystem, its strong monetization models, global reach and creative gameplay experiences target overlapping demographics, especially older teens and young adults.

Both META and EA highlight the competitive landscape Roblox navigates as it seeks sustained growth in social and interactive digital entertainment.

RBLX Price Performance, Valuation & Estimates

Roblox’s shares have declined 50.4% in the past six months compared with the industry’s decrease of 26.1%.

RBLX Six-Month Price Performance

RBLX stock is currently trading at a premium. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 4.72X, well above the industry average of 2.16X.

P/S (F12M)
 

The Zacks Consensus Estimate for Roblox’s 2026 loss per share has narrowed to $1.61 from $1.76 over the past 30 days. 

RBLX currently has a Zacks Rank #3 (Hold). 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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