Roblox Corporation Q3 FY2025 earnings call

Platform Growth - DAUs hit 151.5M, up 70% YOY; hours of engagement 39.6B, up 91% YOY, with strong growth across regions and 13+ age demo. ### Genre Expansion - Investments in infrastructure supported 45M peak concurrency in August. Technologies like server authority, custom matchmaking, and avatar enhancement are rolling out to support genre expansion. ### Creator Ecosystem - DevEx rate increased by 8.5%, creator earnings surpassed $1B in first 9 months of 2025. IP platform launched with partners like Mattel and Kodansha, and Roblox Moments introduced. ### Safety and AI - Partnership with AGA on child safety, AI-based facial age estimation to be rolled out by year-end. Over 100 safety and civility innovations released, including IARC rating adoption and minimum age for restricted content raised to 18. Over 400 AI systems in use for safety, discovery, and creation.

In Q3 2025, Roblox's DAUs reached 151.5 million, up 70% year-on-year. This growth was across all regions, with U.S. and Canada up 32% YOY and APAC up 108% YOY. 13 and over DAUs grew 89% YOY, now making up 2/3 of total DAUs. Hours of engagement hit 39.6 billion hours, up 91% YOY, with U.S. and Canada up 47% YOY and APAC up 127% YOY. Q3 revenue was $1.36 billion, up 48% YOY, and bookings were $1.92 billion, up 70% YOY. Monthly unique payers were 35.8 million, up 88% YOY, and DevEx reached $427.9 million, up 85%.

2026 Outlook - Expect slight margin compression due to investments in DevEx, infrastructure, and safety. ### Bookings Growth - Aided by new technologies rolling out in late Q1 and early Q2 2026, but impacted by tough comps and new safety policies. ### CapEx - CapEx expected to be similar in 2026 to 2025, leading to lower CapEx intensity but still elevated relative to 2024.

• Short-term friction from new safety policies may impact engagement and bookings. - 2026 faces tough year-over-year comparisons which could affect growth rates.

Q: Tie AI infrastructure plans to user experience and 4D content creation for Roblox experiences.

A: David Baszucki discussed Cube 4D enabling real-time content generation in multiplayer, supporting complex objects and AI integration for various genres, aiming for a vision of creator-defined experiences from mobile to high-end PCs.

Q: How does Roblox compete with other UGC platforms on creator economics?

A: David Baszucki emphasized it's more than just DevEx rate; it's about volume of users, creative tools, and velocity of new experiences. Prudent balancing of COGS, personnel, and infrastructure to move money back to creators responsibly.

Q: Key learnings from older age cohorts scaling and investment priorities.

A: David Baszucki noted viral hits attract new users, alignment with global gaming genres, and technical roadmap to support various genres while maintaining cross-device compatibility. Naveen Chopra discussed geographic mix shift impact on monetization.

Q: Thoughts on 2026 bookings growth below 20%?

A: Naveen Chopra stated no specific guidance for 2026 yet, highlighting tailwinds from platform momentum and new tech, but also headwinds from tough comps and safety policies.

Q: Advertising as a tailwind for 2026?

A: Naveen Chopra mentioned cautious approach to advertising, limited near-term contribution but long-term opportunity, with focus on thoughtful integration with creators.

Q: Discovery model and genre diversity.

A: David Baszucki discussed transparency of Discovery algorithm, surfacing new creators and genres, and three prongs of Discovery: recommendation engine, sponsored tiles, and top hits/curated sort. Naveen Chopra explained hours vs. monetization divergence due to geographic mix shift.

Q: Advertising for user growth in tough comp year?

A: David Baszucki and Naveen Chopra mentioned Roblox does some paid acquisition, plans to expand with creator partnerships, and will do so prudently for appropriate return on ad spend.

Q: Dev growth and investment yield.

A: David Baszucki noted healthy creator ecosystem with many creators making significant earnings. Naveen Chopra discussed near-term payback from AI investments in discovery and economy, with longer-term CapEx for AI models.