Roblox slashes full-year forecast as age-verification rollout hammers user growth

Age verification became mandatory for chat access across Roblox $RBLX in January. Users who have not completed age checks have faced restricted communication features, and the process has weighed on the platform's ability to bring in new users. Russia's blocking of the platform, which took effect in December 2025, added further drag on user growth, according to Yahoo Finance. As of the end of the first quarter, 51% of global daily active users had completed age verification, with 65% of U.S. users having done so, Roblox said.

"While our aggressive push to enhance safety lowers our expectations for topline growth in 2026, it makes our platform fundamentally better and amplifies the long-term growth potential of Roblox through more effective content targeting, tailored communication experiences, and improved community sentiment," the company said in its shareholder letter.

Second-quarter bookings are projected at $1.55 billion to $1.61 billion; at the midpoint, that figure trails the $1.88 billion Wall Street had anticipated by a wide margin, according to Yahoo Finance. Roblox also warned of a sequential decline in daily active users during the period.

The safety push has come with legal costs. Roblox accrued $57 million in the first quarter for settlements and settlement proposals with certain states over youth-related consumer protection and digital safety matters, with payments structured over multiple years, the company said.

The age-verification rollout is part of a broader effort to tighten controls on younger users. Roblox is introducing two age-based account tiers for users under 16 — Roblox Kids for ages 5 to 8 and Roblox Select for ages 9 to 15 — with the global rollout set for early June. The changes restrict access to games and chat features based on verified age, and come after legal actions brought by attorneys general in Louisiana and Texas over reports of young users being exposed to grooming and explicit material on the platform.

Despite the near-term pressure, Roblox said its conviction in long-term growth remains intact, with a target of 20% annualized top-line growth and margin expansion. The company ended the first quarter with $6.2 billion in cash, cash equivalents, and investments.