Roblox shares sank 15% on Thursday as the company said it expects increased capital expenditures that could pressure margins.
The gaming company said it expects capital expenditures of $468 million, an increase of $158 million from prior guidance.
“Our operating margin could decline slightly year-over-year due to the combination of higher DevEx rates and the impact of infrastructure and safety related investments catching up with rapid bookings growth in the back half of 2025,” the company said in a letter to shareholders.
The company’s Developer Exchange Program (DevEx) lets creators exchange Robux for real money.
The gaming company’s margin and spending comments overshadowed an otherwise strong third-quarter report.
Roblox’s third-quarter revenue rose 48% year-over-year to $1.36 billion, while bookings surged 70% to $1.92 billion, beating LSEG estimates of $1.65 billion.
The company posted a loss of 37 cents per share, which beat analyst expectations for a loss of 49 cents per share.
“Our third-quarter results demonstrate the tremendous progress weʼve made toward our goal of capturing 10% of the global gaming market,” CEO David Baszucki said in a release.
Roblox boosted booking guidance for the fiscal year to between $6.57 billion and $6.62 billion, up from its previous forecast of $5.87 billion to $5.97 billion the quarter before.
Average daily users were at 151.5 million, up 70% over the year prior, but average bookings per DAU of $12.68 missed the StreetAccount expectation of $13.24.
Rising parental concerns over online gaming and platforms, plus inquiries from lawmakers, have led to a wave of child-safety regulations within the technology sector and pressure on artificial intelligence companies to do more.
Roblox is facing multiple lawsuits alleging that the platform enables predators to sexually exploit and abuse underage victims.
Baszucki told CNBC’s “Squawk on the Street” on Thursday that safety was the company’s “top priority” and it has already put in place several security measures to protect minors on the platform.
“On Roblox, there is no sharing of images, all our text is filtered, and we’re really highlighting our commitment to really innovating in this space,” Baszucki said.
Roblox implemented age-verification software in July that uses facial scans to estimate users’ ages and place them in an appropriate age group: under 13, over 13, and over 18. Those who are over 13 can then access “trusted connections,” a new communication feature that allows users to chat more freely.
The company also announced on Wednesday that it would join the Attorney General Alliance in launching a new child safety initiative, dubbed the Partnership for Youth Online Safety, which seeks to establish best practices for designing tech and deterring online child exploitation.
Roblox year-to-date stock chart.
