RBLX Stock: Roblox is Growing its Garden

Roblox [RBLX] is a video gaming platform on which users can create and publish games.

The platform has an in-game currency called Robux, which is used to buy virtual items and to pay commissions to game developers. In Q1 2025, Roblox’s user-generated content attracted an average of 97.8 million daily users, with 61 million of those being over the age of 13. 

This stock spotlight will discuss the company’s latest news, earnings and market performance, as well as the bull and bear cases for RBLX stock.

Key Developments: Monetizing Moves

Roblox has been actively monetizing its platform in 2025, departing from its longstanding business model.

In January, Roblox allowed developers to add paid access experiences to games. Later in May, the company enabled certain creators and brands to sell physical products on its platform.

After launching video ads through virtual billboards on its platform last year, Roblox signed a partnership deal with Alphabet’s [GOOGL] Google in April to make it easy for advertisers to buy rewarded video ads on Roblox.

According to the company, the newly launched format – whereby users receive in-game benefits for watching a 30-second video ad – is more engaging than traditional video ads.

These monetizing efforts have found an outlet in “Grow a Garden”, one of the platform’s most-played titles, with 8.7 million people playing it simultaneously on May 24. The game’s popularity has spawned a market for in-game items, such as rare seeds, both on and off the platform. 

In other news, Roblox announced the appointment of Naveen Chopra as its new CFO in early June. Chopra previously worked at Paramount [PARA] and Amazon [AMZN], among others.

RBLX Stock’s Robust Rally

Since falling to a 2025 low of $50.10 in early April, RBLX stock has more than doubled in value.

Roblox’s recent rally was driven by improved earnings forecasts and healthy growth in its user base. 

Investors are also gravitating toward RBLX in the belief that the platform’s free-to-play business model could cushion the impact of reduced customer spending amid potential inflationary effects from US-imposed tariffs.

In year-to-date terms, Roblox’s share price increased by over 76% to top a three-year high of $103.57 on June 20. This marked nearly three consecutive months of gains for RBLX.

Key Fundamentals and Financial Health

In 2024, Roblox reported a 24% year-over-year increase in bookings to $4.37bn. Revenue grew 29% year-over-year to $3.60bn during the period.

Bookings refer to sales of Robux, the platform’s in-game currency.

Net loss attributable for the year came in at $935.38m, compared to $1.15bn reported a year ago.

Developer exchange fees, which refer to commission paid to game developers on the platform, accounted for 26% of annual revenue. 

The company had $4bn in cash, short-term investments and long-term investments at the end of 2024.

During Q1 2025, Roblox’s revenue grew 29% and bookings increased by 31% compared to the same period a year ago.

Daily active users on the platform rose 26% year-over-year to 97.8 million, and monthly unique payers increased 29% year-over-year to 20.2 million during the quarter.

Roblox forecast full-year revenue of $4.29bn–4.37bn and consolidated net loss of $977m–1.04bn for 2025.

Comparing RBLX, KRAFTON and EA

KRAFTON [259960:KS] is a South Korean-based video game publisher that is best known for the free-to-play hit PUBG: Battlegrounds.

Electronic Arts [EA] is a US-based video game company that publishes established franchises such as Need for Speedand The Sims. The company’s free-to-play roster includes popular titles such as Apex Legends and Plants vs Zombies.

Source: Yahoo Finance

RBLX Stock: The Investment Case

The Bull Case for Roblox: Room for Growth

Roblox has positioned itself for accelerated revenue growth through monetization initiatives. Recent upgrades that introduced video ads, physical merchandise sales and paid access experiences will create new revenue streams on Roblox while allowing the platform to stick to its free-to-play model.

With about 79% of its daily active users residing outside the US and Canada, new features such as regional pricing — which allows creators to price their offerings to suit local markets — are expected to help maximize revenue generation on the platform. 

Roblox is also working toward expanding its user base beyond individuals below the age of 13 by adding high-performance games and social features (at the end of 2024, about 40% of Roblox’s daily active users were under-13).

With only about 20% of Roblox’s daily active users spending money on the platform, attracting deeper-pocketed older users could drive meaningful growth.

The Bear Case for Roblox: Stranger Danger

Roblox has faced increasing backlash from worried parents who claim that their children are being exposed to harmful content through its games, alongside allegations of bullying and grooming, as reported by the BBC.

In an investigative report dated April 2025, a UK-based research agency called Revealing Reality said that, despite safety measures, adults and children could easily interact in the same virtual spaces with no effective age verification or separation.

Roblox has already been banned in Turkey in a measure taken to “ensure the protection of our children.” More governments could follow suit if child safety on Roblox becomes a growing concern.

Conclusion

Roblox has ambitious plans of capturing 10% of the total gaming content market revenue. Its newly implemented monetization strategies are expected to play a crucial role in achieving this target.

However, regulatory risks remain a lingering concern beneath the platform’s otherwise promising trajectory.