Roblox Q3 results beat expectations despite bookings falling 12% to $1.7bn

Roblox reported a 16% year-on-year increase in revenue, reaching $1.6 billion. However, bookings fell 12% to $1.7 billion. The company attributed the bookings decline to a comparatively stronger growth period in 2025, though it noted that Q3 bookings are up over 50% on a two-year basis.

Engagement metrics also faced downward pressure due to "difficult comparisons" to 2025. Average daily active users (DAUs) declined 9% year-on-year, and total hours engaged dropped 15% to 34 billion. Average bookings per DAU fell 3% to $12.29, while average monthly unique payers decreased 16% to 30.3 million.

AI-driven content creation

In its shareholder letter, Roblox highlighted how AI is reshaping its platform. More than 80% of the top 100 games by hours engaged utilized AI tools to accelerate creation. Furthermore, 97% of creators who regularly use AI reported that it speeds up their development timelines. Games created almost entirely with AI, such as Break and Steal an Egg and Huss Valley, have already broken into the Top 20 in concurrent players.

To support this trend, Roblox launched the AI-powered mobile Build feature in alpha in New Zealand, Singapore, Serbia, and Thailand. To date, over 500,000 users have published more than 70,000 games using this feature.

Focus on the 18+ demographic

Roblox is also prioritizing the over-18 audience, which is currently its fastest-growing cohort. In the US, users over 18 monetize more than 50% higher than the under-18 audience. To capture this market, the company has improved its engine for higher-fidelity content, optimized discovery algorithms, and increased the Developer Exchange (DevEx) rate to reward monetization from this demographic.

• Revenue: $1.6 billion (+16% YoY)

• Bookings: $1.7 billion (-12% YoY)

• Net losses: $230 million