Roblox Stock Dips 15% on Increased Safety Spending Forecast

Shares of Roblox (RBLX) plummeted 15% in Thursday trading following the company’s forecast of increased capital expenditures, sparking concerns about potential margin compression. The gaming platform anticipates capital expenditures of $468 million, a substantial $158 million increase from previous projections.

“Our operating margin could decline slightly year-over-year due to the combination of higher DevEx rates and the impact of infrastructure and safety related investments catching up with rapid bookings growth in the back half of 2025,” the company stated in its shareholder letter. This statement appears to have rattled investors, overshadowing otherwise positive aspects of the third-quarter report.

The Developer Exchange Program (DevEx), which allows creators to convert their in-platform currency, Robux, into real-world currency, also contributes to the expenditure increase. The program’s success and growing popularity translate directly into increasing costs for Roblox.

Despite the margin concerns, Roblox’s third-quarter financials demonstrated strong growth momentum. Revenue surged 48% year-over-year to $1.36 billion, while bookings, a key metric reflecting future revenue, jumped an impressive 70% to $1.92 billion, exceeding LSEG estimates of $1.65 billion. The company’s reported a loss of 37 cents per share, also beating analyst expectations of a loss of 49 cents per share. This beat suggests improved cost management in other areas, even as capital expenditure forecasts were revised upwards.

“Our third-quarter results demonstrate the tremendous progress we’ve made toward our goal of capturing 10% of the global gaming market,” the company touted in its press release, highlighting its ambition for further expansion.

Roblox also revised its full-year bookings guidance upwards, projecting between $6.57 billion and $6.62 billion, a notable increase from the previous forecast of $5.87 billion to $5.97 billion. This indicates strong user engagement and monetization trends.

Average daily active users (DAUs) reached 151.5 million, a 70% increase year-over-year, showcasing the platform’s continuous appeal. However, average bookings per DAU of $12.68 fell short of the StreetAccount expectation of $13.24, potentially signaling challenges in converting user growth into revenue at the same rate.

Beyond financial metrics, Roblox, like other tech companies, faces increasing pressure to prioritize child safety. Growing parental anxiety surrounding online gaming and platforms, coupled with regulatory scrutiny from lawmakers, have fueled the push for stricter controls and safeguards within the technology sector. This has spurred investment in AI safety technologies and greater corporate responsibility.

Roblox is also currently embroiled in multiple lawsuits alleging the platform facilitates the sexual exploitation and abuse of underage users. This legal pressure has amplified calls for enhanced safety measures.

Responding to these concerns, Roblox CEO stated that safety is the company’s “top priority” and that several security measures are already in place to protect minors. The CEO emphasized that image sharing is prohibited, and all text is filtered, highlighting the company’s commitment to innovation in this critical area.

The company recently implemented age-verification software using facial scans to estimate users’ ages, categorizing them into appropriate age groups (under 13, over 13, and over 18). Enhanced communication features, such as “trusted connections,” permit freer chat among users aged 13 and older who have been age-verified. This is an attempt to strike a balance between fostering engaging social experiences and safeguarding younger users.

Further demonstrating its commitment to child safety, Roblox recently announced its participation in the Attorney General Alliance’s Partnership for Youth Online Safety. This initiative aims to establish best practices for tech design and combats online child exploitation, positioning Roblox as a proactive player in building a safer online environment for children.