Roblox's third-quarter earnings exceeded forecasts, even though bookings declined by 12% to $1.7 billion

Roblox's financial performance for the third quarter exceeded projections, with the company reporting a 16% increase in revenue year-over-year, reaching $1.6 billion.

Although bookings dropped by 12% to $1.7 billion due to robust growth in 2025, they showed over a 50% increase when compared to figures from two years ago.

There was a 9% decline in the average daily active users (DAUs) and a 15% reduction in hours engaged, both attributed to strong comparisons with 2025 metrics.

The average bookings per DAU decreased by 3% to $12.29, while the number of average monthly unique payers fell by 16% to 30.3 million.

Financial Overview

For the quarter ending on September 30, 2026:

Revenue: $1.6 billion (an increase of 16% year-over-year)
Bookings: $1.7 billion (a decline of 12% year-over-year)
Net Losses: $230 million

Key Highlights

The quarterly update emphasized the transformative impact of artificial intelligence (AI) on Roblox's creator ecosystem.

A significant majority, over 80%, of the top 100 games by engagement hours utilized AI tools for development acceleration. Additionally, a remarkable 97% of creators who frequently employ AI noted quicker development timelines.

The presence of AI in published games expanded by more than 50% from the previous quarter, with games like "Break and Steal an Egg" and "Huss Valley," primarily created through AI, ranking among the top 20 for concurrent players.

Earlier this year, Roblox rolled out agentic AI tools and later unveiled the AI-driven Build feature during the Roblox Developer's Conference.

This Build feature, now in alpha in countries like New Zealand, Singapore, Serbia, and Thailand, has attracted over 500,000 users, leading to the development of more than 70,000 games.

David Baszucki, Roblox CEO, explained that "AI is fundamentally reshaping the gaming industry, driving a step function change in the pace at which content can be created." The focus is on scalable distribution, effective game discovery, a dynamic economy, and robust safety and infrastructure.

Roblox's strategy also includes targeting the over-18 demographic through initiatives like Roblox Everywhere, which allows game creators to publish across platforms, and the AI-powered tool Roblox Reality.

The company commented, "We are focused on replicating the success we have had in younger cohorts with the over 18 demographic."

In 2026, they have made significant strides by enhancing their engine, increasing the DevEx rate for monetization from users over 18 in the US, expanding paid acquisition targeting this age group, and optimizing discovery algorithms specifically.

Users over 18 are the company's fastest-growing audience, monetizing more than 50% above the younger cohort in the US. As the over-18 user base expands, overall monetization is anticipated to rise.

A recent report by Newzoo indicated that 80% of Roblox's older players have spent money on games within the last six months, compared to 59% of non-players.