Roblox(RBLX.N)创下150.59美元的历史新高。 ...

Financial Data and Key Metrics Changes - In Q2 2025, Roblox reported revenue of $1.1 billion, representing a 21% year-on-year increase [10] - Q2 bookings reached $1.4 billion, up 51% year-on-year, with strong growth across all regions [10] - Daily Active Users (DAUs) were 111.8 million, a 41% increase year-on-year [11] - Monthly unique payers reached 23.4 million, up 42%, setting a new all-time record [13] - Developer Exchange (DevEx) amounted to $316.4 million, up 52% year-on-year, also a new all-time record [13] Business Line Data and Key Metrics Changes - Bookings growth was particularly strong in APAC, which grew by 75%, with notable increases in Japan (over 50%), India (over 90%), and Indonesia (over 150%) year-on-year [10][11] - The number of experiences with over 10 million DAUs increased, with five experiences achieving this milestone, including new hits launched in the last twelve months [14] Market Data and Key Metrics Changes - The U.S. and Canada saw bookings growth of 43%, while APAC's growth was driven by strategic markets [10] - Engagement hours in Q2 reached 27.4 billion, up 58% year-on-year, with significant growth in APAC (95%) and the U.S. and Canada (35%) [12] Company Strategy and Development Direction - Roblox aims to capture 10% of the global gaming content market, with a focus on enhancing platform performance, discovery, and creator economy [10][14] - The company is investing in global infrastructure and personalization to improve user experience and content discovery [16] - Innovations in safety and privacy tools are being prioritized, including the introduction of trusted connections and age estimation [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on multiple tailwinds, including the UGC creator economy and advancements in AI [28] - The company raised its fiscal year 2025 guidance, expecting revenue growth of 22% to 25% and bookings growth of 34% to 37% year-on-year [32][34] - Management noted that while current trends are positive, there is a need for caution in extrapolating Q2's extraordinary results over a longer period [34] Other Important Information - The company launched an IP license manager and catalog, partnering with major brands like Lionsgate and Netflix [20] - A new creator rewards program was introduced to better align incentives with long-term platform health [85] Q&A Session Summary Question: How much capacity does the system have to absorb the surge in demand? - Management highlighted the ability to handle over 30 million concurrent players, utilizing a mix of bare metal infrastructure and cloud services to manage demand effectively [38][39] Question: What are the implications of the ecosystem changes for developer growth? - Management noted that the success of viral hits like Grow a Garden is attracting more developers to the platform, with ongoing improvements in technology and discovery [44][55] Question: How is Grow a Garden impacting new customer acquisition? - Management confirmed that Grow a Garden is bringing in new users, with a notable increase in older demographics engaging with the platform [94][96] Question: What is the status of the Google partnership for advertising? - Management indicated that the integration of rewarded video ads is progressing well, with strong interest from creators [74][75]

Financial Data and Key Metrics Changes - In Q2 2025, Roblox reported revenue of $1,100,000,000, representing a 21% increase year on year [7] - Q2 bookings reached $1,400,000,000, up 51% year on year [7] - Daily Active Users (DAUs) were 111,800,000, an increase of 41% year on year [8] - Monthly unique payers in Q2 were 23,400,000, up 42%, setting a new all-time record [10] - Developer Exchange (DevEx) was $316,400,000, up 52% year on year, also a new all-time record [10] Business Line Data and Key Metrics Changes - Bookings growth was strong across all regions, with the U.S. and Canada seeing a 43% increase, while APAC grew by 75% [8] - Notable year-on-year Q2 bookings growth included Japan over 50%, India over 90%, and Indonesia over 150% [8] Market Data and Key Metrics Changes - In Q2, the U.S. and Canada DAUs grew by 21%, while APAC DAUs increased by 76% [9] - Engagement hours reached 27,400,000,000, up 58% year on year, with significant growth in APAC at 95% [9] Company Strategy and Development Direction - Roblox aims to capture 10% of the global gaming content market, with a focus on performance, quality, and discovery [6][11] - The company is investing in global infrastructure, personalization, and discovery to enhance user experience and creator success [12][13] - Innovations in safety and privacy tools were introduced, including trusted connections and age estimation [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on multiple tailwinds, including the UGC creator economy and advancements in AI [24] - The full-year 2025 revenue guidance was raised to a growth of 22% to 25% year on year, with bookings growth expected at 34% to 37% [27][29] Other Important Information - The company highlighted the success of new viral hits, with five experiences exceeding 10,000,000 DAUs [11] - A new creator rewards program was introduced to better align incentives with long-term platform health [82] Q&A Session Summary Question: How much capacity does the system have to absorb the surge in demand? - The company is pushing numbers above 30,000,000 concurrent players and has optimized its infrastructure to handle this load without excessive CapEx [33][34] Question: How do you see the ecosystem implications of recent changes? - The company believes that the growth of non-top 10 experiences is significant, with more than half of the growth in experience spend coming from these titles [26] Question: What is the impact of Grow a Garden on new customer acquisition? - Grow a Garden has attracted new users, particularly older demographics, and is expected to help drive engagement across the platform [91][92] Question: Can you discuss the Google partnership on the advertising side? - The company is seeing strong interest in rewarded video ads and has onboarded nearly 100 publishers, with plans to expand this monetization avenue [70][71]

Core Viewpoint - Roblox, known as the "first stock of the metaverse," unexpectedly raised its annual bookings forecast while reporting over 100 million daily active users, driven by the success of viral games like "Grow a Garden," leading to a pre-market stock surge of over 20% [1][7] Financial Performance - The net loss widened from $205.9 million in the same period last year to $278.4 million, with total expenses rising nearly 24% to $1.4 billion [1] - Revenue increased by 21% to $1.08 billion, but fell short of the expected $1.11 billion [1] - Second-quarter bookings were approximately $1.44 billion, exceeding the market's general estimate of $1.32 billion [4] User Engagement - The average daily active users surged by 41% to 111.8 million, with user engagement time increasing by 58% to 27.4 billion hours [2][7] - "Grow a Garden," a mini-farm simulation game, significantly contributed to user engagement and bookings growth [2][7] Future Outlook - Roblox now expects fiscal year 2025 bookings to be between $5.87 billion and $5.97 billion, up from a previous estimate of $5.29 billion to $5.36 billion, and above Wall Street's expectations [3] - The management anticipates third-quarter bookings to be between $1.59 billion and $1.64 billion, significantly higher than the market's expectation of $1.35 billion [3] Revenue Model - Roblox's revenue primarily comes from user-generated content and the sale of its in-game currency "Robux," which is the core source of its bookings [4] - The company also generates revenue through developer shares, advertising, and brand collaborations, enhancing its revenue diversification [4] Market Position - Roblox is positioning its platform as a hub for social interaction, commerce, and advertising, which has excited investors and led to a doubling of its stock price this year [3][7] - The platform's unique "metaverse" approach allows users to create, share, and play games, attracting a growing number of adult users with higher spending power [6][7]

格隆汇7月31日｜在线视频游戏平台Roblox(RBLX.US)2025年Q2营收10.8亿美元，去年同期8.935亿美 元。三季度预订量指引为15.9-16.4亿美元，超市场预期的13.4亿美元。 来源：格隆汇APP ...

Q2 2025 Financial Performance - Revenue reached $1.1 billion, a 21% year-over-year increase[6] - Bookings totaled $1.4 billion, demonstrating a 51% year-over-year growth[6] - Average Daily Active Users (DAUs) grew to 111.8 million, up 41% year-over-year[6] - Hours Engaged increased to 27.4 billion, a 58% year-over-year rise[6] - Net loss was $(280) million[8] - Net cash provided by operating activities was $199 million, a 32% year-over-year increase[8] - Free cash flow was $177 million, a 58% year-over-year increase[8] Q3 and Fiscal Year 2025 Guidance - Q3 2025 revenue is projected between $1.11 billion and $1.16 billion, representing a 21% to 26% year-over-year increase[63] - Q3 2025 bookings are expected to range from $1.59 billion to $1.64 billion, indicating a 41% to 45% year-over-year growth[63] - Full year 2025 revenue is forecasted between $4.39 billion and $4.49 billion, a 22% to 25% year-over-year increase[64] - Full year 2025 bookings are projected between $5.87 billion and $5.97 billion, reflecting a 34% to 37% year-over-year growth[64]

智通财经7月31日电，在线视频游戏平台Roblox三季度预订量指引为15.9-16.4亿美元，超市场预期的 13.4亿美元。 ...

Roblox(RBLX.N)盘前涨幅扩大至超过20%。 ...

格隆汇7月31日｜Roblox(RBLX.US)2025年Q2营收10.8亿美元，去年同期8.935亿美元。 ...

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights that the 10-Q report contains forward-looking statements about future financial and operating performance, business strategy, growth, and market conditions. These statements are subject to substantial risks and uncertainties, and actual results may differ materially from projections [Forward-Looking Statements Overview](index=4&type=section&id=Forward-Looking%20Statements%20Overview) This section highlights that the 10-Q report contains forward-looking statements about future financial and operating performance, business strategy, growth, and market conditions. These statements are subject to substantial risks and uncertainties, and actual results may differ materially from projections - Forward-looking statements cover expectations regarding future financial performance (revenue, costs, profitability), business and growth strategy (advertising, international users, AI investments), liquidity needs, economic trends, platform functionality, user retention, and legal/regulatory matters[8](index=8&type=chunk)[12](index=12&type=chunk) - Readers are cautioned not to rely on these statements as predictions of future events, as outcomes are subject to risks detailed in the 'Risk Factors' section and other competitive and rapidly changing environmental factors[10](index=10&type=chunk) [Special Note Regarding Operating Metrics](index=7&type=section&id=Special%20Note%20Regarding%20Operating%20Metrics) This section defines key operating metrics used to manage the business, including Daily Active Users (DAUs), Hours Engaged, Bookings, and Average Bookings per DAU (ABPDAU). It also notes the inherent challenges and potential inaccuracies in measuring these metrics due to internal data reliance and evolving methodologies [Operating Metrics Overview](index=7&type=section&id=Operating%20Metrics%20Overview) This section defines key operating metrics used to manage the business, including Daily Active Users (DAUs), Hours Engaged, Bookings, and Average Bookings per DAU (ABPDAU). It also notes the inherent challenges and potential inaccuracies in measuring these metrics due to internal data reliance and evolving methodologies - Key operating metrics tracked include DAUs, hours engaged, bookings, ABPDAU, average new and returning monthly unique payers, monthly repurchase rate, and average bookings per monthly unique payer[14](index=14&type=chunk) - Metrics are based on internal analytics and reasonable estimates, but are subject to measurement challenges, methodological limitations, operational constraints, and potential inaccuracies from incorrect user data or botting[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Starting in Q3 2025, reported age demographics will be based on a hierarchy of data sources, potentially impacting comparability with prior periods[15](index=15&type=chunk) - Bookings are a non-GAAP measure representing sales activity, primarily from virtual currency sales, recognized over the estimated average lifetime of a paying user (**27 months** as of June 30, 2025)[23](index=23&type=chunk)[24](index=24&type=chunk) [PART I. FINANCIAL INFORMATION](index=10&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements for Roblox Corporation, including the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, revenue recognition, and other financial components [Item 1. Financial Statements (Unaudited)](index=10&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Roblox Corporation, including the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, revenue recognition, and other financial components [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Condensed Consolidated Balance Sheets (in thousands)** | Item | June 30, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------ | :---------------- | :----- | :------- | | Total assets | $7,845,571 | $7,175,003 | $670,568 | 9.35% | | Cash and cash equivalents | $994,570 | $711,683 | $282,887 | 39.75% | | Short-term investments | $1,632,626 | $1,697,862 | $(65,236) | -3.84% | | Long-term investments | $2,111,258 | $1,610,215 | $501,043 | 31.12% | | Total liabilities | $7,507,915 | $6,966,349 | $541,566 | 7.77% | | Deferred revenue—current portion | $3,365,460 | $3,004,969 | $360,491 | 12.00% | | Total Stockholders' equity | $337,656 | $208,654 | $129,002 | 61.83% | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) **Condensed Consolidated Statements of Operations (in thousands, except per share amounts)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :----------------------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Revenue | $1,080,677 | $893,543 | 21.0% | $2,115,884 | $1,694,843 | 24.8% | | Total costs and expenses | $1,403,137 | $1,131,492 | 24.0% | $2,693,053 | $2,235,120 | 20.5% | | Loss from operations | $(322,460) | $(237,949) | 35.5% | $(577,169) | $(540,277) | 6.8% | | Consolidated net loss | $(279,800) | $(207,195) | 35.0% | $(496,140) | $(479,115) | 3.6% | | Net loss per share (basic and diluted) | $(0.41) | $(0.32) | 28.1% | $(0.73) | $(0.75) | -2.7% | [Condensed Consolidated Statements of Comprehensive Loss](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) **Condensed Consolidated Statements of Comprehensive Loss (in thousands)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consolidated net loss | $(279,800) | $(207,195) | $(496,140) | $(479,115) | | Other comprehensive income/(loss), net of tax | $8,808 | $(619) | $17,663 | $(7,678) | | Total comprehensive loss, including noncontrolling interest | $(270,992) | $(207,814) | $(478,477) | $(486,793) | [Condensed Consolidated Statements of Stockholders' Equity](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) **Condensed Consolidated Statements of Stockholders' Equity (in thousands)** | Item | Balance at Dec 31, 2024 | Stock-based compensation expense (6 months) | Net loss (6 months) | Balance at June 30, 2025 | | :-------------------------------- | :---------------------- | :------------------------------------------ | :------------------ | :--------------------- | | Total Stockholders' equity | $208,654 | $543,698 | $(496,140) | $337,656 | - Total stockholders' equity increased from **$208.7 million** as of December 31, 2024, to **$337.7 million** as of June 30, 2025, primarily due to stock-based compensation expense and issuance of common stock, partially offset by net loss[44](index=44&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Condensed Consolidated Statements of Cash Flows (in thousands)** | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :---------------------------------------------------- | :----------------------------- | :----------------------------- | :------- | | Net cash and cash equivalents provided by operating activities | $643,176 | $390,395 | 64.7% | | Net cash and cash equivalents used in investing activities | $(429,658) | $(133,907) | 220.9% | | Net cash and cash equivalents provided by financing activities | $63,692 | $32,797 | 94.2% | | Cash and cash equivalents (End of period) | $994,570 | $966,406 | 2.9% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Description of Business](index=16&type=section&id=1.%20Organization%20and%20Description%20of%20Business) - Roblox Corporation reincorporated from Delaware to Nevada on May 30, 2025[54](index=54&type=chunk) - The company operates a free-to-use immersive platform for connection and communication, where users create, play, work, learn, and connect in experiences built by a global community of creators[55](index=55&type=chunk) - Users can acquire experience-specific enhancements or avatar items using Robux, the virtual currency. Developers and creators earn Robux by monetizing experiences, selling avatar items, or creating Roblox Studio plugins[55](index=55&type=chunk) [2. Basis of Presentation and Summary of Significant Accounting Policies](index=16&type=section&id=2.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim financial reporting[57](index=57&type=chunk) - Effective April 1, 2024, the estimated paying user life for revenue recognition of durable virtual items was updated from **28 months** to **27 months**, increasing Q2 2024 revenue by **$58.9 million** and cost of revenue by **$12.4 million**[62](index=62&type=chunk) - New accounting pronouncements (ASU 2023-09 and ASU 2024-03) related to income tax and expense disaggregation disclosures are being evaluated for future impact[64](index=64&type=chunk)[65](index=65&type=chunk) [3. Revenue from Contracts with Customers](index=18&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) **Revenue by Geographic Region (in thousands)** | Region | Three Months Ended June 30, 2025 (Amount) | Three Months Ended June 30, 2025 (Percentage) | Three Months Ended June 30, 2024 (Amount) | Three Months Ended June 30, 2024 (Percentage) | | :------------------------------------ | :---------------------------------------- | :-------------------------------------------- | :---------------------------------------- | :-------------------------------------------- | | United States and Canada | $669,648 | 62% | $565,867 | 63% | | Europe | $204,672 | 19% | $163,407 | 18% | | Asia-Pacific | $115,706 | 11% | $95,055 | 11% | | Rest of world | $90,651 | 8% | $69,214 | 8% | | **Total** | **$1,080,677** | **100%** | **$893,543** | **100%** | | Region | Six Months Ended June 30, 2025 (Amount) | Six Months Ended June 30, 2025 (Percentage) | Six Months Ended June 30, 2024 (Amount) | Six Months Ended June 30, 2024 (Percentage) | | :------------------------------------ | :---------------------------------------- | :-------------------------------------------- | :---------------------------------------- | :-------------------------------------------- | | United States and Canada | $1,316,914 | 62% | $1,075,431 | 63% | | Europe | $398,308 | 19% | $308,971 | 18% | | Asia-Pacific | $224,742 | 11% | $180,329 | 11% | | Rest of world | $175,920 | 8% | $130,112 | 8% | | **Total** | **$2,115,884** | **100%** | **$1,694,843** | **100%** | - Durable virtual items accounted for **90%** and **91%** of virtual item-related revenue for the three and six months ended June 30, 2025, respectively, showing consistent dominance[68](index=68&type=chunk) - Deferred revenue increased for the six months ended June 30, 2025, as sales exceeded recognized revenue, with **$1,680.7 million** of prior period deferred revenue recognized[71](index=71&type=chunk) [4. Leases](index=18&type=section&id=4.%20Leases) **Sublease Income (in thousands)** | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sublease income | $2,465 | $2,338 | $4,796 | $3,743 | [5. Cash Equivalents and Investments](index=19&type=section&id=5.%20Cash%20Equivalents%20and%20Investments) **Cash Equivalents and Investments (in thousands)** | Item | As of June 30, 2025 (Fair Value) | As of December 31, 2024 (Fair Value) | | :------------------------ | :------------------------------- | :------------------------------- | | Money market funds | $795,856 | $615,890 | | U.S. Treasury securities | $2,273,848 | $2,156,998 | | U.S. agency securities | $466,991 | $293,294 | | Commercial paper | $277,694 | $280,242 | | Corporate debt securities | $772,920 | $595,183 | | Mutual funds (Equity) | $3,026 | $2,178 | | **Total Fair Value** | **$4,590,335** | **$3,943,785** | - Total fair value of cash equivalents and investments increased by **$646.55 million** from December 31, 2024, to June 30, 2025[73](index=73&type=chunk) - Unrealized losses on debt securities as of June 30, 2025, were primarily due to increases in market interest rates, but the Company does not intend to sell these securities before recovery of amortized cost[75](index=75&type=chunk) [6. Goodwill and Intangible Assets](index=20&type=section&id=6.%20Goodwill%20and%20Intangible%20Assets) **Goodwill (in thousands)** | Item | Amount | | :-------------------------- | :------- | | Balance as of December 31, 2024 | $141,688 | | Foreign currency translation adjustments | $922 | | Balance as of June 30, 2025 | $142,610 | **Finite-Lived Intangible Assets (Net Carrying Amount in thousands)** | Item | As of June 30, 2025 | As of December 31, 2024 | | :------------------ | :------------------ | :-------------------- | | Developed technology | $13,668 | $20,943 | | Patents | $11,300 | $12,050 | | Assembled workforce | $0 | $250 | | Trade name | $117 | $167 | | **Total** | **$25,085** | **$33,410** | - Amortization expense for finite-lived intangible assets was **$8.3 million** for the six months ended June 30, 2025, down from **$10.1 million** in the prior year period[79](index=79&type=chunk) [7. Other Balance Sheet Components](index=21&type=section&id=7.%20Other%20Balance%20Sheet%20Components) **Prepaid Expenses and Other Current Assets (in thousands)** | Item | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :-------------------- | | Prepaid expenses | $59,681 | $47,919 | | Accrued interest receivable | $29,088 | $19,690 | | Other current assets | $11,793 | $7,806 | | **Total** | **$100,562** | **$75,415** | **Property and Equipment, Net (in thousands)** | Item | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :-------------------- | | Total property and equipment | $1,212,849 | $1,247,029 | | Less accumulated depreciation and amortization | $(599,142) | $(587,440) | | **Property and equipment—net** | **$613,707** | **$659,589** | - Total depreciation and amortization expense of property and equipment was **$99.2 million** for the six months ended June 30, 2025, up from **$96.5 million** in the prior year period[82](index=82&type=chunk) **Accrued Expenses and Other Current Liabilities (in thousands)** | Item | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :-------------------- | | Accrued operating expenses and liabilities | $72,455 | $49,478 | | Short-term operating lease liabilities | $136,909 | $128,857 | | Taxes payable | $49,012 | $54,609 | | Accrued compensation and other employee related liabilities | $22,150 | $28,147 | | Short-term debt | $14,700 | $0 | | **Total** | **$317,150** | **$275,754** | [8. Debt](index=22&type=section&id=8.%20Debt) - The Company issued **$1.0 billion** aggregate principal amount of 3.875% Senior Notes due 2030, with interest payable semi-annually[84](index=84&type=chunk) - The net carrying amount of the 2030 Notes was **$992.4 million** as of June 30, 2025, and the estimated fair value was approximately **$946.4 million**[90](index=90&type=chunk)[93](index=93&type=chunk) - The Company was in compliance with all covenants under the Indenture as of June 30, 2025[90](index=90&type=chunk) [9. Commitments and Contingencies](index=24&type=section&id=9.%20Commitments%20and%20Contingencies) - The Company is involved in legal proceedings, including class action lawsuits (Colvin v. Roblox and Gentry v. Roblox) alleging minors used third-party virtual casinos to gamble Robux, and a copyright infringement case (Robinson v. Binello)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - The Company accrues for probable and estimable litigation losses but cannot reasonably estimate the maximum possible loss for all matters due to their varying stages[98](index=98&type=chunk)[102](index=102&type=chunk) - No material changes to lease commitments or purchase obligations occurred during the six months ended June 30, 2025, other than in the ordinary course of business[95](index=95&type=chunk)[96](index=96&type=chunk) [10. Stockholders' Equity](index=25&type=section&id=10.%20Stockholders'%20Equity) - As of June 30, 2025, the Company had **4,935.0 million** authorized Class A common shares (1 vote/share) and **65.0 million** authorized Class B common shares (20 votes/share)[105](index=105&type=chunk) - **0.1 million** Class B common shares were converted to Class A common stock during Q2 2025[106](index=106&type=chunk) **Shares Reserved for Future Issuance (in thousands)** | Item | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :-------------------- | | Stock options outstanding | 13,086 | 27,458 | | Restricted Stock Units ("RSUs") outstanding | 31,296 | 34,941 | | Performance Stock Units ("PSUs") outstanding | 3,030 | 2,304 | | 2020 Equity Incentive Plan | 116,525 | 91,642 | | 2020 Employee Stock Purchase Plan | 26,508 | 20,855 | | Other awards and warrants outstanding or unreleased | 335 | 367 | | **Total** | **190,780** | **177,567** | [11. Stock-Based Compensation Expense](index=26&type=section&id=11.%20Stock-Based%20Compensation%20Expense) **Stock-Based Compensation Expense (in thousands)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Infrastructure and trust & safety | $34,618 | $27,973 | $68,168 | $55,248 | | Research and development | $188,698 | $180,556 | $365,598 | $353,803 | | General and administrative | $48,551 | $34,796 | $84,565 | $66,441 | | Sales and marketing | $12,895 | $8,566 | $25,367 | $16,901 | | **Total stock-based compensation expense** | **$284,762** | **$251,891** | **$543,698** | **$492,393** | - Total stock-based compensation expense increased by **$32.871 million** (13.05%) for the three months ended June 30, 2025, and by **$51.305 million** (10.42%) for the six months ended June 30, 2025, compared to the prior year periods[110](index=110&type=chunk) - The 2024 CEO PSU Award and RSU award, granted on March 1, 2024, did not result in incremental stock-based compensation expense upon modification, with **$84.4 million** remaining to be recognized[115](index=115&type=chunk) - New 2025 PSU Awards were granted to management, with performance measures based on cumulative bookings and PSU Adjusted EBITDA margin over a two-year period ending December 31, 2026[121](index=121&type=chunk) [12. Accumulated Other Comprehensive Income/(Loss)](index=29&type=section&id=12.%20Accumulated%20Other%20Comprehensive%20Income%2F(Loss)) **Changes in Accumulated Other Comprehensive Income/(Loss) (in thousands)** | Item | Balance as of December 31, 2024 | Change (6 months) | Balance as of June 30, 2025 | | :---------------------------------------------------- | :------------------------------ | :---------------- | :-------------------------- | | Foreign Currency Translation | $(2,167) | $7,603 | $5,436 | | Unrealized Gains/(Losses) on Available-For-Sale Debt Securities | $(1,728) | $10,124 | $8,396 | | **Total** | **$(3,895)** | **$17,727** | **$13,832** | [13. Joint Venture](index=29&type=section&id=13.%20Joint%20Venture) - Roblox operates a joint venture, Roblox China Holding Corp., with Songhua River Investment Limited (an affiliate of Tencent Holdings Ltd.), holding a **51%** ownership interest[126](index=126&type=chunk) - The joint venture focuses on developing, localizing, and licensing the Roblox application and Studio for the Chinese market[126](index=126&type=chunk) - In May 2023, Roblox China Holding Corp. issued **$30.0 million** in debt (2026 Notes) funded by Roblox and Songhua, bearing **6.0%** interest[128](index=128&type=chunk)[129](index=129&type=chunk) [14. Income Taxes](index=30&type=section&id=14.%20Income%20Taxes) - The Company maintains a full valuation allowance on its federal, state, and certain foreign net deferred tax assets due to the unlikelihood of their utilization[133](index=133&type=chunk) - The provision for income taxes was immaterial for the three and six months ended June 30, 2025 and 2024[133](index=133&type=chunk) [15. Basic and Diluted Net Loss Per Common Share](index=30&type=section&id=15.%20Basic%20and%20Diluted%20Net%20Loss%20Per%20Common%20Share) **Net Loss Per Common Share (in thousands, except per share data)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to common stockholders | $(278,375) | $(205,883) | $(493,431) | $(476,487) | | Weighted-average common shares used in computing net loss per share (basic and diluted) | 684,837 | 642,814 | 678,307 | 638,917 | | **Net loss per share attributable to common stockholders, basic and diluted** | **$(0.41)** | **$(0.32)** | **$(0.73)** | **$(0.75)** | - Potential common shares (stock options, RSUs, ESPP, PSUs, other awards) were excluded from diluted EPS calculation as their inclusion would be anti-dilutive due to net losses[134](index=134&type=chunk) [16. Reportable Segments](index=31&type=section&id=16.%20Reportable%20Segments) - The Company operates as a single operating segment[135](index=135&type=chunk) **Segment Information (in thousands)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,080,677 | $893,543 | $2,115,884 | $1,694,843 | | Consolidated net loss | $(279,800) | $(207,195) | $(496,140) | $(479,115) | [17. Subsequent Events](index=31&type=section&id=17.%20Subsequent%20Events) - On July 30, 2025, the Company executed a lease agreement for an additional **68,333 square feet** of office space for approximately **8 years**, with an incremental base rent of **$82.0 million**[136](index=136&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Roblox's financial condition, results of operations, and cash flows, discussing key business drivers, operating metrics, non-GAAP financial measures, and significant changes in revenue and expenses for the reported periods [Overview](index=32&type=section&id=Overview) - Roblox operates a free-to-use immersive platform for connection and communication, powered by user-generated content, drawing inspiration from gaming, entertainment, social media, and toys[140](index=140&type=chunk) - The platform consists of Roblox Client (for users), Roblox Studio (for developers/creators), and Roblox Cloud (services/infrastructure). Investments are focused on high-fidelity avatars, realistic experiences, AI tools, and social features[141](index=141&type=chunk) - In Q2 2025, only a small portion of DAUs (**1.48 million** out of **111.8 million**) were paying users, with average daily bookings per DAU at **$0.14** and per paying user at **$10.68**[143](index=143&type=chunk) - Platform policy changes and safety feature refinements in late 2024 and 2025 have impacted user engagement, revenue, and bookings, particularly from younger users[144](index=144&type=chunk) [Key Metrics](index=33&type=section&id=Key%20Metrics) - Management tracks DAUs, hours engaged, bookings, and ABPDAU as key indicators of performance, trends, and for strategic decisions[146](index=146&type=chunk)[147](index=147&type=chunk) - DAUs are defined as unique registered users logged in and visiting Roblox on a given calendar day, serving as an indicator of audience size and platform value[148](index=148&type=chunk) - Hours engaged measures the total time users spend on the platform, reflecting user engagement and platform value[151](index=151&type=chunk) - Bookings, a non-GAAP measure, represents sales activity, primarily from virtual currency, and provides a timelier indication of operating trends than revenue[154](index=154&type=chunk)[155](index=155&type=chunk)[157](index=157&type=chunk) - ABPDAU (Bookings per DAU) is used to understand monetization across all users[158](index=158&type=chunk) - Average new and returning monthly unique payers and monthly repurchase rate are used to understand monetization across payers[168](index=168&type=chunk) - Average bookings per monthly unique payer measures monetization from virtual currency and subscriptions among payers[171](index=171&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) - Non-GAAP measures like bookings, Adjusted EBITDA, and free cash flow are used for evaluating ongoing operations, internal planning, and forecasting, providing consistency and comparability with past financial performance[174](index=174&type=chunk) **Reconciliation of Revenue to Bookings (in thousands)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,080,677 | $893,543 | $2,115,884 | $1,694,843 | | Change in deferred revenue | $365,068 | $66,728 | $542,964 | $194,332 | | Other | $(8,117) | $(5,093) | $(14,510) | $(10,240) | | **Bookings** | **$1,437,628** | **$955,178** | **$2,644,338** | **$1,878,935** | **Reconciliation of Consolidated Net Loss to Adjusted EBITDA (in thousands)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consolidated net loss | $(279,800) | $(207,195) | $(496,140) | $(479,115) | | Interest income | $(48,844) | $(44,383) | $(95,167) | $(86,553) | | Interest expense | $10,342 | $10,204 | $20,692 | $20,567 | | Other (income)/expense, net | $(5,131) | $3,315 | $(8,390) | $3,661 | | Provision for/(benefit from) income taxes | $973 | $110 | $1,836 | $1,163 | | Depreciation and amortization expense | $53,784 | $52,772 | $107,518 | $106,513 | | Stock-based compensation expense | $284,762 | $251,891 | $543,698 | $492,393 | | Other charges | $2,274 | $(189) | $2,274 | $993 | | **Adjusted EBITDA** | **$18,360** | **$66,525** | **$76,321** | **$59,622** | **Reconciliation of Net Cash from Operating Activities to Free Cash Flow (in thousands)** | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------------------------------------- | :----------------------------- | :----------------------------- | | Net cash and cash equivalents provided by operating activities | $643,176 | $390,395 | | Acquisition of property and equipment | $(39,975) | $(86,381) | | Purchases of intangible assets | $0 | $(1,370) | | **Free cash flow** | **$603,201** | **$302,644** | [Change in Accounting Estimate](index=42&type=section&id=Change%20in%20Accounting%20Estimate) - Effective April 1, 2024, the estimated average lifetime of a paying user was updated from **28 months** to **27 months**, impacting revenue recognition for durable virtual items[184](index=184&type=chunk) - This change resulted in an increase in revenue and cost of revenue during the three months ended June 30, 2024, by **$58.9 million** and **$12.4 million**, respectively[185](index=185&type=chunk) [Components of Results of Operations](index=42&type=section&id=Components%20of%20Results%20of%20Operations) - Revenue is primarily generated from virtual content sales, recognized over the estimated average lifetime of a paying user or upon consumption of virtual items[187](index=187&type=chunk) - Cost of revenue mainly consists of third-party payment processing fees, deferred and recognized over the same period as revenue. Differential Robux pricing, launched in November 2024, aims to shift sales to lower transaction fee channels[191](index=191&type=chunk)[192](index=192&type=chunk) - Developer exchange fees represent amounts earned by qualified developers and creators, with a goal to continuously increase these earnings through new methods and business efficiencies[195](index=195&type=chunk)[197](index=197&type=chunk) - Infrastructure and trust & safety expenses include data center operations, hosting, network costs, and personnel. The company is investing in AI and automation to improve safety moderation efficiency[198](index=198&type=chunk)[200](index=200&type=chunk) - Research and development expenses are expected to increase due to headcount growth for new features and platform enhancements[201](index=201&type=chunk) - General and administrative expenses are projected to rise to support business growth and complexity, including professional services and litigation costs[202](index=202&type=chunk) - Sales and marketing expenses are planned to increase to support business growth, including personnel and advertising/promotional activities[203](index=203&type=chunk) - Interest income primarily comes from short-term and long-term investments and cash equivalents, while interest expense relates to the 2030 Notes[204](index=204&type=chunk)[205](index=205&type=chunk) - Other income/(expense), net includes foreign currency exchange gains/losses and realized gains/losses on investments[206](index=206&type=chunk) - Provision for income taxes is primarily for foreign jurisdictions, with a full valuation allowance on U.S. deferred tax assets[207](index=207&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) **Consolidated Results of Operations (in thousands, except per share data and percentages)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Revenue | $1,080,677 | $893,543 | 21% | $2,115,884 | $1,694,843 | 25% | | Cost of revenue | $236,113 | $198,557 | 19% | $460,838 | $377,423 | 22% | | Developer exchange fees | $316,371 | $208,270 | 52% | $597,935 | $410,675 | 46% | | Infrastructure and trust & safety | $260,684 | $221,064 | 18% | $502,811 | $447,998 | 12% | | Research and development | $384,996 | $361,684 | 6% | $759,596 | $723,749 | 5% | | General and administrative | $152,166 | $105,627 | 44% | $271,298 | $203,451 | 33% | | Sales and marketing | $52,807 | $36,290 | 46% | $100,575 | $71,824 | 40% | | Loss from operations | $(322,460) | $(237,949) | 35.5% | $(577,169) | $(540,277) | 6.8% | | Consolidated net loss | $(279,800) | $(207,195) | 35.0% | $(496,140) | $(479,115) | 3.6% | | Net loss per share | $(0.41) | $(0.32) | 28.1% | $(0.73) | $(0.75) | -2.7% | - Revenue increased by **21%** for the three months and **25%** for the six months ended June 30, 2025, driven by higher amortization of deferred revenue and increased bookings, primarily from a higher average number of daily unique paying users[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) - Developer exchange fees saw significant increases (**52%** for three months, **46%** for six months), exceeding bookings growth due to differential Robux pricing incentivizing lower transaction fee channels[217](index=217&type=chunk)[218](index=218&type=chunk) - General and administrative expenses increased by **44%** and **33%** for the three and six months, respectively, mainly due to higher personnel costs (including stock-based compensation) and increased professional services related to litigation[224](index=224&type=chunk)[225](index=225&type=chunk) - Other income/(expense), net, changed from a net expense to a net income, primarily driven by foreign currency exchange gains[229](index=229&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, principal liquidity sources were cash, cash equivalents, and investments totaling **$4.7 billion**, primarily for working capital, capital expenditures, and acquisitions[232](index=232&type=chunk) - Net cash provided by operating activities increased to **$643.2 million** for the six months ended June 30, 2025, from **$390.4 million** in the prior year, driven by increased deferred revenue and decreased accounts receivable[242](index=242&type=chunk)[244](index=244&type=chunk) - Net cash used in investing activities increased significantly to **$429.7 million**, primarily due to higher net investment purchases[242](index=242&type=chunk)[245](index=245&type=chunk) - The Company believes existing liquidity and expected cash from operations will be sufficient for the next **12 months**, but future capital requirements depend on growth rate, headcount, and infrastructure investments[241](index=241&type=chunk) **Covenant Adjusted EBITDA (in thousands)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consolidated net loss | $(279,800) | $(207,195) | $(496,140) | $(479,115) | | Change in deferred revenue | $365,068 | $66,728 | $542,964 | $194,332 | | Change in deferred cost of revenue | $(63,553) | $(18,813) | $(94,373) | $(51,745) | | **Covenant Adjusted EBITDA** | **$319,875** | **$114,440** | **$524,912** | **$202,209** | [Off-Balance Sheet Arrangements](index=54&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company has letters of credit related to operating leases, which are not reflected in the balance sheets, with no material changes during the six months ended June 30, 2025[247](index=247&type=chunk) - Roblox has no relationships with unconsolidated entities or financial partnerships for off-balance sheet arrangements[247](index=247&type=chunk) [Contractual Obligations and Commitments](index=54&type=section&id=Contractual%20Obligations%20and%20Commitments) - Contractual commitments include operating leases for office facilities and data centers, and non-cancellable purchase obligations with data center hosting providers, software vendors, and payment processors[248](index=248&type=chunk)[249](index=249&type=chunk) - No material changes to these commitments occurred during the six months ended June 30, 2025, beyond ordinary course of business[248](index=248&type=chunk)[249](index=249&type=chunk) [Critical Accounting Policies and Estimates](index=54&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The preparation of financial statements requires significant estimates and assumptions, including the estimated average lifetime of a paying user for revenue recognition[251](index=251&type=chunk)[252](index=252&type=chunk) - No material changes to critical accounting policies and estimates were reported compared to the Annual Report on Form 10-K for December 31, 2024[253](index=253&type=chunk) [Recent Accounting Pronouncements](index=54&type=section&id=Recent%20Accounting%20Pronouncements) - Refer to Note 2 for a discussion of recent accounting pronouncements[254](index=254&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details Roblox's exposure to market risks, specifically interest rate risk and foreign currency exchange/inflation risk, and how these factors could impact its financial position [Interest Rate Risk](index=54&type=section&id=Interest%20Rate%20Risk) - The Company's cash equivalents and investments are subject to market risk from changes in interest rates; a hypothetical **100 basis points** increase would decrease fair value by approximately **$40.1 million** as of June 30, 2025[256](index=256&type=chunk) - The 2030 Notes have a fixed interest rate, so there is no financial statement risk from interest rate changes, though their fair value fluctuates[258](index=258&type=chunk) - Investment policy focuses on capital preservation and liquidity, not trading or speculation[257](index=257&type=chunk) [Foreign Currency Exchange and Inflation Risk](index=55&type=section&id=Foreign%20Currency%20Exchange%20and%20Inflation%20Risk) - No significant changes to foreign currency exchange risk or inflation risk disclosures were reported during the six months ended June 30, 2025[259](index=259&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of Roblox's disclosure controls and procedures and internal control over financial reporting, confirming their effectiveness and noting no material changes [Evaluation of Disclosure Controls and Procedures](index=55&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, with CEO and CFO participation, concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[260](index=260&type=chunk) [Changes in Internal Control Over Financial Reporting](index=55&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the three months ended June 30, 2025[261](index=261&type=chunk) [Inherent Limitations on Effectiveness of Controls and Procedures](index=55&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Controls%20and%20Procedures) - Management acknowledges that controls and procedures, no matter how well designed, can only provide reasonable assurance of achieving objectives due to inherent limitations and resource constraints[262](index=262&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers additional information not included in the financial statements, such as legal proceedings, risk factors, equity sales, defaults, mine safety, other disclosures, and exhibits [Item 1. Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the detailed discussion of legal proceedings under Note 9 of the financial statements, indicating ongoing and potential litigation matters - Information on legal proceedings is incorporated by reference from Note 9, 'Commitments and Contingencies – Legal Proceedings,' in the condensed consolidated financial statements[263](index=263&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) This comprehensive section outlines various risks that could materially and adversely affect Roblox's business, financial condition, results of operations, and growth prospects, categorized into business-related, government regulations, intellectual property, stock ownership, indebtedness, and general risks [Risk Factors Summary](index=57&type=section&id=Risk%20Factors%20Summary) - Key risks include a history of net losses, seasonal business fluctuations, evolving global laws/regulations, dependence on third-party operating systems, maintaining a strong brand and safe online environment, potential service outages, security compromises, and reliance on developers for content[266](index=266&type=chunk) - Other risks involve the volatility of Class A common stock, concentrated voting control by the Founder, and the impact of analyst research[266](index=266&type=chunk) [Risks Related to Our Business](index=58&type=section&id=Risks%20Related%20to%20Our%20Business) - Roblox has a history of net losses, with an accumulated deficit of **$4,489.1 million** as of June 30, 2025, and expects continued losses due to increased operating expenses and investments[268](index=268&type=chunk) - The business is highly seasonal, with peak bookings in Q4 and higher engagement in summer months, making financial results difficult to predict[269](index=269&type=chunk) - Dependence on third-party operating systems (Apple App Store, Google Play Store) means policy changes or increased fees could adversely affect the business; **29%** of revenue from Apple, **15%** from Google in Q2 2025[281](index=281&type=chunk)[284](index=284&type=chunk) - Maintaining a strong reputation and safe online environment is critical, especially for child users, as inappropriate content or negative media coverage could harm the brand and business[288](index=288&type=chunk)[293](index=293&type=chunk)[294](index=294&type=chunk) - The Company relies on developers to create compelling content; failure to incentivize them or if popular experiences wane could lead to decreased user engagement and revenue[298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk) - Outages, disruptions, or degradations in services or infrastructure, including reliance on AWS, could harm user relationships and financial results[301](index=301&type=chunk)[339](index=339&type=chunk) - International expansion, while critical, exposes Roblox to risks like weaker spending in developing countries, regulatory complexities, and geopolitical events, as seen with the platform being blocked in Türkiye[314](index=314&type=chunk)[315](index=315&type=chunk) - The introduction and use of generative AI present risks such as flawed algorithms, biased datasets, unpredictable decisions, and evolving regulatory frameworks (e.g., EU AI Act, Texas Responsible AI Governance Act, Colorado AI Act)[322](index=322&type=chunk)[323](index=323&type=chunk)[324](index=324&type=chunk) - User metrics are estimates based on internal data and are subject to inaccuracies from methodological limitations, botting, and incomplete demographic data, potentially harming reputation and business decisions[325](index=325&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk) - Unauthorized, fraudulent, or illegal use of Robux or digital goods, including through third-party websites or 'cheating' programs, could reduce revenue and increase chargebacks[331](index=331&type=chunk)[333](index=333&type=chunk) - The China joint venture faces risks from U.S.-China trade tensions, potential data export rules, and the need for continued collaboration with Tencent, with the Luobulesi app currently unavailable in China[357](index=357&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk)[361](index=361&type=chunk) [Risks Related to Government Regulations](index=82&type=section&id=Risks%20Related%20to%20Government%20Regulations) - Roblox is subject to complex and evolving global privacy, cybersecurity, and data protection laws (e.g., GDPR, UK GDPR, COPPA, LGPD, PIPL, NIS2, CCPA, CPRA), which impose stringent requirements and potential significant fines for non-compliance[362](index=362&type=chunk)[364](index=364&type=chunk)[365](index=365&type=chunk)[366](index=366&type=chunk)[367](index=367&type=chunk)[368](index=368&type=chunk)[369](index=369&type=chunk)[370](index=370&type=chunk) - New laws in Utah, Louisiana, and Texas require verifiable parental consent for minors' in-app purchases, potentially impacting revenue and bookings from younger users[275](index=275&type=chunk) - Legal and regulatory restrictions on virtual currencies (like Robux), prepaid gift cards, and payment activities could adversely affect the platform, with ongoing discussions about 'loot boxes' and social casino genres[277](index=277&type=chunk)[372](index=372&type=chunk)[373](index=373&type=chunk) - Compliance with export control, trade sanctions (e.g., OFAC), and import laws is required, with potential liability for violations and impacts from geopolitical events like the Russia-Ukraine conflict[375](index=375&type=chunk) - Changes in tax laws (e.g., digital services tax, OECD Pillar One/Two) and unclaimed property audits could increase costs and liabilities[377](index=377&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk) - Non-compliance with anti-corruption, anti-bribery (e.g., FCPA, UK Bribery Act), and anti-money laundering laws can lead to criminal or civil liability and reputational harm[381](index=381&type=chunk)[383](index=383&type=chunk) - The Company may incur liability from user-generated content, including copyright infringement, despite relying on legal protections like DMCA and CDA, which are subject to change or challenge[384](index=384&type=chunk)[391](index=391&type=chunk)[392](index=392&type=chunk) [Risks Related to Intellectual Property](index=90&type=section&id=Risks%20Related%20to%20Intellectual%20Property) - Claims by third parties that Roblox infringes their intellectual property rights could lead to costly litigation, damages, or injunctions, harming the business[389](index=389&type=chunk)[390](index=390&type=chunk) - Indemnity provisions in agreements with third parties could expose Roblox to substantial liability for intellectual property infringement and other losses[395](index=395&type=chunk) - Failure to adequately protect or enforce intellectual property rights (trademarks, trade secrets, patents, copyrights) could allow competitors to use proprietary technology, diminishing competitive advantage[396](index=396&type=chunk)[397](index=397&type=chunk)[398](index=398&type=chunk) - Use of open source software in the platform may pose intellectual property and security risks, potentially requiring disclosure of proprietary code or leading to compliance issues[399](index=399&type=chunk)[400](index=400&type=chunk) [Risks Related to Ownership of our Class A Common Stock](index=91&type=section&id=Risks%20Related%20to%20Ownership%20of%20our%20Class%20A%20Common%20Stock) - The public trading price of Class A common stock is volatile and can decline regardless of operating performance, influenced by market fluctuations, analyst coverage, and company announcements[401](index=401&type=chunk)[402](index=402&type=chunk)[404](index=404&type=chunk) - The dual-class stock structure concentrates voting control in the Founder, David Baszucki, limiting other stockholders' ability to influence corporate matters[403](index=403&type=chunk) - Inaccurate or unfavorable research by securities analysts, media, or short sellers could negatively impact the market price and trading volume of Class A common stock[405](index=405&type=chunk) - Nevada law and provisions in the articles of incorporation and bylaws (e.g., classified board, advance notice procedures) could make mergers, tender offers, or proxy contests difficult[406](index=406&type=chunk)[407](index=407&type=chunk) - Bylaws designate specific exclusive forums for disputes, potentially limiting stockholders' ability to choose a favorable judicial forum[409](index=409&type=chunk)[410](index=410&type=chunk)[413](index=413&type=chunk) - The articles of incorporation include a jury trial waiver for internal actions, which could limit stockholders' ability to demand a jury trial[415](index=415&type=chunk) - The Company does not expect to pay dividends in the foreseeable future, requiring stockholders to rely on stock sales for gains[416](index=416&type=chunk) [Risks Related to our Indebtedness](index=98&type=section&id=Risks%20Related%20to%20our%20Indebtedness) - Inability to generate sufficient cash flow to service debt obligations, including the 2030 Notes, could necessitate refinancing or restructuring on unfavorable terms[417](index=417&type=chunk)[418](index=418&type=chunk) - Indebtedness could adversely impact financial flexibility, reduce funds for operations and investments, and create a competitive disadvantage[420](index=420&type=chunk)[423](index=423&type=chunk) [General Risks](index=100&type=section&id=General%20Risks) - Failure to maintain effective disclosure and internal controls over financial reporting could impair timely and accurate financial statements, leading to investor distrust and regulatory scrutiny[421](index=421&type=chunk)[422](index=422&type=chunk) - Legal proceedings and claims, regardless of outcome, can be costly, time-consuming, and harm the Company's reputation[424](index=424&type=chunk) - Catastrophic events (natural disasters, pandemics, geopolitical conflicts) could disrupt operations, cause system interruptions, and lead to financial losses not fully covered by insurance[425](index=425&type=chunk) - Changing inflation rates and volatile global economic conditions could affect expenses, reduce consumer spending, and impact financial results[426](index=426&type=chunk)[427](index=427&type=chunk) - Maintaining cash balances at third-party financial institutions in excess of FDIC limits exposes the Company to risks if banks become insolvent[428](index=428&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=103&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report - No unregistered sales of equity securities or use of proceeds were reported[430](index=430&type=chunk) [Item 3. Defaults Upon Senior Securities](index=103&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities - No defaults upon senior securities were reported[431](index=431&type=chunk) [Item 4. Mine Safety Disclosures](index=103&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section confirms that there are no mine safety disclosures to report - No mine safety disclosures were reported[432](index=432&type=chunk) [Item 5. Other Information](index=103&type=section&id=Item%205.%20Other%20Information) This section details the termination of Rule 10b5-1 trading arrangements by several key officers during the most recent fiscal quarter - Amy Rawlings, Chief Accounting Officer, terminated her Rule 10b5-1 trading arrangement on June 3, 2025[434](index=434&type=chunk) - Arvind Chakravarthy, Chief People and Systems Officer, terminated his Rule 10b5-1 trading arrangement on June 10, 2025[435](index=435&type=chunk) - Michael Guthrie, former Chief Financial Officer, terminated his Rule 10b5-1 trading arrangement on June 11, 2025[436](index=436&type=chunk) [Item 6. Exhibits](index=104&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the 10-Q report, including corporate governance documents, employment agreements, certifications, and XBRL data - Exhibits include the Plan of Conversion, Articles of Incorporation, Bylaws, Indemnification Agreements, Offer Letter for Naveen Chopra, Amendment to Separation Agreement for Michael Guthrie, Change in Control Agreement for Naveen Chopra, and various certifications (31.1, 31.2, 32.1)[438](index=438&type=chunk) - XBRL Instance Document and Taxonomy Extension Documents are also filed[438](index=438&type=chunk)[440](index=440&type=chunk) [Signatures](index=105&type=section&id=Signatures) This section contains the required signatures for the Quarterly Report on Form 10-Q, confirming its submission by authorized personnel - The report is signed by Naveen Chopra, Chief Financial Officer (Principal Financial Officer), on behalf of Roblox Corporation, dated July 31, 2025[442](index=442&type=chunk)[443](index=443&type=chunk)