Roblox's Bottom Line Still in the Red: When Will Profitability Arrive?

Despite explosive top-line growth and record-breaking user engagement, Roblox Corporation RBLX continues to grapple with an unprofitable business model. In second-quarter 2025, the company reported a loss per share of 41 cents, marking yet another quarter in the red, even as revenues soared 50% year over year to $1.44 billion and bookings jumped 51% to $1.4 billion.The company is firing on all cylinders in terms of platform activity. Daily Active Users surged 41% to 111.8 million, hours engaged climbed 58% and monthly unique payers hit an all-time high. Viral hits like “Grow a Garden” attracted users and more than 75% of its DAUs interacted with at least one other experience on the same day, signaling healthy cross-platform engagement.But monetizing that engagement remains a challenge. Roblox continues to prioritize reinvestment in its creator ecosystem, spending a record $316 million on DevEx payouts during the quarter. The new Creator Rewards program also signals a commitment to sharing revenues, further delaying the path to profit.While CFO Naveen Chopra highlighted strong free cash flow and a $4 billion liquidity cushion, he also acknowledged that translating viral momentum into sustained, platform-wide monetization is still a work in progress.Roblox may be building the infrastructure for long-term growth, but for investors, the lingering question remains: when will scale finally translate to sustainable profitability? Until then, the company’s bottom line is likely to remain a weak link in an otherwise compelling growth story.RBLX’s Price Performance, Valuation and EstimatesRBLX’s shares have gained 106.2% in the past six months compared with the industry’s increase of 18%. 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 6.9% and 23.4%, respectively.Price PerformanceImage Source: Zacks Investment ResearchWith the recent gain, RBLX is priced at a premium relative to its industry. Its forward 12-month price-to-sales ratio of 13.17 is well above the industry average. Meanwhile, Take-Two Interactive and Electronic Arts’ forward 12-month price-to-sales ratios are 5.8 and 5.12, respectively.P/S (F12M)Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for 2025 loss per share has widened to $1.68 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 33.2% and 21.1%, respectively. Image Source: Zacks Investment ResearchRBLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report Roblox Corporation (RBLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks