Roblox stock slips 10% as company expects more spending on safety and infrastructure

Roblox's stock took a significant hit, dropping 10% on Thursday, as the company revealed plans for increased capital expenditures that may impact its profit margins. The gaming giant announced it anticipates spending around $468 million, marking an increase of $158 million from earlier predictions. In a letter to shareholders, Roblox cautioned that its operating margin could see a slight year-over-year decline due to higher Developer Exchange Program (DevEx) rates and the costs associated with investments in safety and infrastructure. These developments come as the company experiences rapid growth in bookings, particularly in the latter half of 2025. Despite the stock's downturn, Roblox reported a strong performance in its third-quarter results. Revenue surged by 48% year-over-year, reaching $1.36 billion, while bookings soared 70%, totaling $1.92 billion, surpassing LSEG's estimates of $1.65 billion. Additionally, the company recorded a loss of 37 cents per share, which was better than the analyst projections of a 49-cent loss. CEO David Baszucki highlighted the company’s achievements, stating, "Our third-quarter results demonstrate the tremendous progress we’ve made toward our goal of capturing 10% of the global gaming market." Roblox also raised its booking guidance for the fiscal year, now expecting between $6.57 billion and $6.62 billion, a notable increase from the previous forecast of $5.87 billion to $5.97 billion. However, the positive outlook was somewhat overshadowed by a widening net loss of $255 million, which reflects a loss of 37 cents per share, compared to a net loss of $239 million during the same period last year. The company reported an average daily user count of 151.5 million, representing a 70% increase from the previous year, but the average bookings per daily active user stood at $12.68, falling short of the anticipated $13.24.