Roblox Corporation (RBLX) Surged in Q2. Here’s Why

Group 1: Market Performance - U.S. large-cap growth equities experienced a strong recovery in Q2 2025, with the Sands Capital Select Growth Strategy portfolio returning 27.7%, outperforming the Russell 1000 Growth Index's 17.8% gain [1] - The positive quarterly performance was attributed to muted inflation, strong corporate earnings, and improving sentiment around artificial intelligence and global trade [1] Group 2: Roblox Corporation (NYSE:RBLX) Highlights - Roblox Corporation is recognized as a leading platform for game development and distribution, with a one-month return of 15.87% and a remarkable 199.63% increase in share value over the last 52 weeks [2][3] - As of September 15, 2025, Roblox's stock closed at $137.26 per share, with a market capitalization of $94.863 billion [2] - The company reported a 21% year-on-year revenue growth to $1.1 billion in Q2 2025, alongside significant operating leverage with EBITDA margins expanding by 760 basis points year-over-year to 17%, the highest since 2021 [4] - Key metrics such as daily active users, bookings, and hours played showed reacceleration, with the strongest sequential increase in hours played since 2020 [3] - Company guidance suggests continued margin expansion, potentially leading to $1 billion in free cash flow in 2025 [3] Group 3: Hedge Fund Interest - At the end of Q2 2025, 75 hedge fund portfolios held shares of Roblox Corporation, an increase from 68 in the previous quarter [4]