Once just a pixelated playground for kids, Roblox (RBLX) has grown into a full-blown digital universe where users play, build, and monetize their own worlds. Known for its build-it-yourself worlds and massive Gen Z following, the company has leveled up big time in 2025.

Shares of Roblox are up 105% so far this year and just hit a fresh high of $127.99 on July 21. A licensing wave brought Netflix (NFLX) and Sega into the mix, while developers cashed in like never before.

Two viral games — “Grow a Garden” and the spooky hit “99 Nights in the Forest” — are stealing the spotlight. The latter has racked up over 200 million visits since March and ranks high on both trending and top-earning charts. Meanwhile, "Grow a Garden" is attracting advertisers despite not running ads yet. That says something about Roblox’s untapped ad potential.

Roblox has been riding high on market optimism, with some analysts bullish on its long-term potential. However, the stock's high valuation raises concerns, and RBLX broke its winning streak last week with a pullback. So, is this just a minor blip and a chance for investors to snag shares? Or is it time for a reality check?

About Roblox Stock

San Mateo, California based Roblox started out in 2004 as an ambitious bet, less about building games and more about building the builders. Instead of designing games, Roblox gave players the tools to create their own 3D worlds through Roblox Studio and monetize them using Robux, its in-game currency. This model flipped the script on traditional gaming — creators became the core of the business.

The company’s infrastructure, anchored by Roblox Cloud, powers immersive experiences that blend gameplay with social connection, stretching far beyond U.S. borders into a global phenomenon. With a market capitalization of $80 billion, Roblox’s strategic ad deals with Google (GOOGL), merchandise drops via Shopify (SHOP), and rising global footprint are sharpening its edge. And it’s not stopping there — more users, more creators, and deeper monetization are the name of the game.

Over the past 52 weeks, Roblox stock has surged 193%. Shares are up 78% in just three months as well. RBLX hit a fresh 52-week high on July 21 before paring back some of the gains.

Roblox’s sharp rally has pushed its valuation into elevated territory. With RBLX stock now priced at 22 times forward sales and 64 times forward cash flow, it’s wearing a premium price tag — flashy, no doubt, but making some wonder whether this high-flying gamer’s getting a little too rich.

Roblox’s Q1 Revenue Jumps, Losses Narrow

Roblox came out swinging in 2025, with its first-quarter earnings report released on May 1 reigniting bullish momentum and sending the stock back into rally mode. The gaming platform generated $1.04 billion in revenue, a 29% jump year-over-year (YOY), outpacing both its own prior pace and Wall Street’s expectations.

Though still in the red, the bottom line showed resilience. Loss per share narrowed to $0.32 from $0.43 a year earlier, coming in better than what the Street anticipated and signaling tighter cost discipline even as the platform continues to scale aggressively.

Bookings, the real gauge of platform momentum, surged 31% to $1.2 billion, blowing past consensus. The platform’s core health looked even stronger beneath the surface — daily active users (DAUs) rose 26% annually to 97.8 million, monthly unique users climbed 29%, and engagement jumped another 30% YOY. Bookings per player increased 4%, showing that Roblox isn’t just growing bigger but also more efficient. 

Then came the outlook, which didn’t disappoint. Management raised full-year guidance off the back of Q1’s outperformance, calling for revenue between $4.29 billion and $4.365 billion. Bookings are estimated to be between $5.285 billion and $5.36 billion. Finally, adjusted EBITDA is expected to come somewhere between $205 million and $265 million. 

The company is all set to deliver its Q2 earnings report on Thursday, July 31, before the market opens. Revenue is estimated to be between $1.02 billion and $1.045 billion, while bookings are expected to be somewhere between $1.165 billion and $1.19 billion. If Q2 delivers even close to Q1’s strength, another guidance bump could be in the cards, and RBLX stock may just keep riding that uptrend.

Analysts tracking Roblox expect the company to trim its fiscal 2025 losses by 1.4% YOY to -$1.42 per share. It's then on track to tighten losses further to -$1.08 per share in 2026, a 24% improvement.

What Do Analysts Expect for Roblox Stock?

JPMorgan raised its RBLX stock price target to $125 from $120, keeping an ‘Overweight’ rating. However, this was not just a routine lift, but a reflection of serious momentum.

Analyst Cory Carpenter pointed to surging engagement. Roblox hit a record 32 million concurrent users. That kind of traffic isn’t just noise, but translates into business. The analyst now expects Q2 bookings growth to rocket 37%, with 30% gains for fiscal 2025, both blowing past Roblox’s own guidance.

Meanwhile, BMO Capital also bumped up its price target to $135 from $95, while sticking with its ‘Outperform’ rating. But this was not just a hunch. It followed the firm's deep dive into Roblox’s breakout hit, “Grow a Garden,” which smashed records with 21.9 million concurrent users on July 19.

What caught BMO’s eye was the potential for monetization. Analyst Brian Pitz sees “Grow a Garden” not just driving traffic but turning it into serious cash — maybe even outperforming Roblox’s top-grossing titles. That optimism led the analyst to hike Roblox’s 2025 and 2026 bookings estimates again — up another 3.2% and 3.5%, respectively — on top of earlier boosts.

Wall Street’s take on RBLX stock is leaning bullish, but with a cautious grip. The stock has a consensus “Moderate Buy” overall. Out of 25 analysts covering the stock, 15 advise a “Strong Buy,” showing clear confidence in the gaming platform’s momentum. Two analysts suggest a “Moderate Buy” rating, while six stay on the fence with a “Hold.” But it’s not all green lights. Two analysts are waving the red flag with a “Strong Sell" rating, suggesting that there’s still some skepticism in the crowd.

RBLX stock currently trades above the average analyst price target. However, the Street-high target of $152 suggests that shares could rally 28% from here.