"After a strong rebound in 2025, Roblox is back in the spotlight. User growth reaccelerated, engagement reached new highs, and the company expanded its monetization toolkit. For the first time in a while, the long-term story began to look credible again. But a reset is not the same as a resolution. Despite meaningful progress, Roblox exited 2025 with several unresolved issues that continue to define the investment debate. These are not short-term blemishes. They go to the heart of whether Roblox can eventually become a sustainably profitable platform, rather than a perpetually promising one."
"The most significant issue remains unchanged: Roblox is still not profitable. Even after a year of accelerating bookings and rising engagement, the company continues to report significant losses, estimated to reach $1.1 billion in 2025. Infrastructure costs remain high, trust and safety spending is unavoidable, and developer payouts scale directly with platform success. In practice, Roblox's cost structure expands in line with its revenue. This isn't a one-off problem tied to a weak quarter. It's structural."
Roblox experienced renewed user growth and higher engagement in 2025 alongside an expanded monetization toolkit, making its long-term potential appear more credible. Despite those gains, the company remained unprofitable, with losses estimated at $1.1 billion in 2025. High infrastructure costs, unavoidable trust and safety spending, and developer payouts that scale with platform success cause the cost base to grow with revenue. Operating leverage has not yet materialized, leaving profitability theoretical. The company generates significant free cash flow and reinvests it, while advertising and other monetization avenues show promise but remain early-stage.
Read at The Motley Fool
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