Roblox Q2 2025 slides: Bookings surge 51% as user growth accelerates

Introduction & Market Context

Roblox Corporation (NYSE:RBLX) released its Q2 2025 financial results on July 31, 2025, showcasing exceptional growth across all key metrics. The gaming platform’s shares surged 16.42% in premarket trading to $145.45, significantly above the previous close of $124.94, as investors responded positively to the company’s accelerating growth trajectory.

The Q2 results represent a substantial improvement from the already strong Q1 2025 performance, when Roblox reported revenue of $1.21 billion and bookings of $1.21 billion. The latest quarter shows continued momentum with even stronger growth rates in key areas.

Quarterly Performance Highlights

Roblox reported impressive year-over-year growth across all major metrics for Q2 2025. Revenue reached $1.08 billion, representing 21% growth compared to the same period last year. More significantly, bookings – a key forward-looking indicator for the company – surged to $1.4 billion, marking a substantial 51% year-over-year increase.

As shown in the following chart of quarterly revenue growth:

The company’s bookings growth has accelerated dramatically in Q2 2025, reaching its highest year-over-year growth rate in recent quarters:

Despite the strong top-line growth, Roblox continues to operate at a loss, reporting a consolidated net loss of $280 million for the quarter. However, the company achieved positive Adjusted EBITDA of $18 million, while generating $199 million in net cash from operating activities (up 32% year-over-year) and $177 million in free cash flow (up 58% year-over-year).

User Growth & Engagement Analysis

Roblox’s user base expanded significantly during Q2 2025, with daily active users (DAUs) reaching 111.8 million, a 41% increase compared to Q2 2024. This represents a substantial acceleration from previous quarters and demonstrates the platform’s growing global appeal.

The following chart illustrates the consistent upward trend in daily active users, with Q2 2025 showing the steepest year-over-year growth:

Even more impressive was the growth in user engagement, with total hours engaged reaching 27.4 billion, a remarkable 58% increase year-over-year. This metric suggests users are not only joining the platform in greater numbers but are also spending significantly more time on it.

The hours engaged metric shows a dramatic acceleration in Q2 2025:

Monetization Metrics

Roblox’s ability to monetize its growing user base also showed improvement in Q2 2025. Average bookings per daily active user (ABPDAU) increased to $12.86, representing a 7% year-over-year growth. While this growth is more modest than the user and engagement metrics, it demonstrates the company’s ability to maintain monetization levels while rapidly expanding its user base.

The following chart shows the trend in average bookings per DAU:

Regional Performance

Roblox’s growth was particularly strong in the Asia-Pacific (APAC) region, which showed significant increases in both users and engagement. The company’s international expansion strategy appears to be paying dividends, with strong growth across all geographic regions.

The breakdown of daily active users by region shows the increasing contribution from international markets, particularly APAC:

Similarly, hours engaged showed strong growth across all regions, with APAC again leading the expansion:

Cash Flow & Financial Position

Despite continuing to operate at a net loss, Roblox demonstrated improving financial health with strong cash flow metrics. Free cash flow reached $177 million in Q2 2025, representing a 58% year-over-year increase. This improvement suggests the company is making progress toward sustainable profitability.

The following chart illustrates the company’s improving free cash flow trend:

Forward Guidance

Roblox provided guidance for Q3 2025 and the full fiscal year. For Q3, the company expects revenue between $1.09 billion and $1.12 billion, and bookings between $1.14 billion and $1.17 billion. The company anticipates a consolidated net loss between $285 million and $280 million, with Adjusted EBITDA between $5 million and $10 million.

For the full fiscal year 2025, Roblox projects revenue between $4.30 billion and $4.35 billion, and bookings between $5.15 billion and $5.23 billion. The company expects a consolidated net loss between $1.13 billion and $1.12 billion, with Adjusted EBITDA between $50 million and $55 million.

Market Response & Conclusion

The market’s strongly positive reaction to Roblox’s Q2 2025 results reflects investor confidence in the company’s growth trajectory and business model. With the stock up 16.42% in premarket trading, reaching $145.45, Roblox shares are trading well above their 52-week range of $35.30 to $127.99.

The acceleration in key metrics – particularly the 51% growth in bookings and 58% increase in hours engaged – suggests Roblox is successfully executing its growth strategy. While profitability remains a challenge, the improving cash flow metrics and strong user growth indicate the company is building a foundation for sustainable long-term success.

Roblox’s performance in Q2 2025 demonstrates the company’s ability to not only expand its user base but also increase engagement and monetization, positioning it well for continued growth in the competitive gaming and metaverse markets.

Full presentation:

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