Roblox (RBLX) Sees User Growth Rebound in 2025, Yet Profitability Challenges Persist
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Fool
- Profitability Elusive: Despite accelerating user engagement and bookings in 2025, Roblox is projected to incur losses of $1.1 billion, indicating unresolved structural cost issues that investors should monitor regarding long-term profitability sustainability.
- Advertising Potential Emerging: Roblox rolled out immersive ad formats and rewarded video ads in 2025, showcasing significant advertising revenue potential; however, it has yet to prove scalability without compromising user experience, leading investors to view it as a future opportunity rather than a current earnings driver.
- Creator Economy Pressure: In the first nine months of 2025, creators earned over $1 billion through the platform, reinforcing Roblox's position in the creator economy, yet developer payouts have not significantly decreased as a percentage of bookings, limiting margin expansion and necessitating the capture of additional high-margin revenue for sustainable returns.
- Investor Patience Tested: While Roblox made strides in growth and monetization options in 2025, it failed to resolve core issues around profitability, early-stage advertising, and creator payouts impacting margins, requiring investors to maintain patience and conviction in execution over immediate earnings power.
Analyst Views on RBLX
Wall Street analysts forecast RBLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RBLX is 133.89 USD with a low forecast of 70.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
13 Buy
8 Hold
1 Sell
Moderate Buy
Current: 74.700
Low
70.00
Averages
133.89
High
180.00
Current: 74.700
Low
70.00
Averages
133.89
High
180.00
About RBLX
Roblox Corporation operates a platform for connection and communication (Roblox Platform), where every day, people come to create, play, work, learn, and connect with each other in experiences built by its global community of creators. The Company’s platform consists of the Roblox Client, the Roblox Studio, and the Roblox Cloud. Roblox Client is an application that allows users to seamlessly explore 3D immersive experiences. Roblox Studio is the free toolset that allows developers and creators to build, publish, and operate three-dimensional (3D) immersive experiences and other content accessed with the Roblox Client. Roblox Cloud includes the services and infrastructure that power its Platform. The Company operates the Roblox Platform as a live service that allows users to play and socialize with others for free. The Company offers developers and creators the ability to build engaging, immersive experiences and marketplace items that they can easily share with the Roblox community.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
