Roblox $RBLX reported second-quarter results Thursday that sent its stock tumbling 29% on Friday to $34.50, its worst single-day percentage decline on record, according to Barron's.
Two analysts downgraded Roblox stock to Sell after the company's third-quarter bookings forecast came in well below Wall Street expectations
JEAN-CHRISTOPHE VERHAEGEN / Getty Images
Roblox $RBLX reported second-quarter results Thursday that sent its stock tumbling 29% on Friday to $34.50, its worst single-day percentage decline on record, according to Barron's.
The gaming platform posted a second-quarter loss of 26 cents per share on total bookings of $1.57 billion, an 8% increase from a year earlier. Roblox also chose not to provide full-year guidance, telling investors that "we do not believe annual guidance is a helpful tool for investors."
The company's third-quarter outlook drove the sharpest reaction from Wall Street. Roblox guided for third-quarter bookings of $1.58 billion to $1.65 billion and revenue of $1.41 billion to $1.49 billion. Analysts had been expecting bookings of around $1.9 billion and revenue of $1.86 billion for the period, according to Barron's.
Management pointed to softer spending by younger users in the U.S. and Canada, and said adjustments to how the platform surfaces content also hurt results, the company said. Roblox has been pushing to broaden its appeal beyond its core younger audience, and its rollout of age-verification features appears to have come at a financial cost.
BTIG downgraded Roblox stock to Sell from Neutral on Friday. Benchmark Equity Research also cut its rating to Sell from Hold.
"Management credibility is strained, the brand appears to be weakening and the company is selling a distant strategic vision while the core business deteriorates," Benchmark analyst Mike Hickey said. Hickey also warned that "the platform may be entering lifecycle decline, with weakness spreading from new-user acquisition in 1Q to monetization in 2Q and increasingly affecting the under-13 audience that powers its social graph, organic growth and parent-funded spending."
Not all analysts turned negative. B. Riley analyst Drew Crum maintained a Buy rating on the stock, and Morgan Stanley $MS analyst Matthew Cost lowered his price target to $55 from $62 while remaining bullish. Cost noted that platform engagement looks to be recovering and argued that sustained activity among younger users could drive growth even while near-term monetization remains "impaired."
Friday's selloff deepened what had already been a rough year for Roblox shares, which were down 40% in 2026 before the session began.
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