Exhibit 99.1

 
​2Q26 Highlights​ ​Second Quarter 2026 Financial and Operational Highlights​

 
​To Our Shareholders:​ ​For the past two years, we have consistently focused on our goal to capture 10% of the global​ ​gaming market and an even greater share of the U.S. market. A goal of this magnitude requires a​ ​deliberate balance between managing near-term business performance and investing in the​ ​long-term growth opportunities central to our future: expanding our global audience, broadening​ ​our content offering, and deepening engagement for users and creators.​ ​Our Q2 performance reflects this balance. Our financial results saw continued topline growth and​ ​robust cash flow generation despite challenging prior year comparisons. Revenue grew 36%​ ​year-over-year to $1.5 billion.​​1​ ​We generated $318 million in operating cash flow, up 60%​ ​year-over-year, and $294 million in free cash flow, up 66% year-over-year. Q2 daily active users​ ​(DAUs) and hours engaged (Hours) were largely in line with our expectations. That said,​ ​year-over-year bookings growth of 8%, landed at the low end of our guidance range.​​1​ ​The bookings shortfall reflects a decline in per hour monetization most notably with younger​ ​cohorts in the U.S. and Canada. We believe the decline reflects a greater than expected shift of​ ​engagement from high monetizing, 2025-vintage viral games, to both new and evergreen games​ ​with lower hourly monetization. This underlying mix shift was compounded by changes in our​ ​Recommended for You (RFY) algorithm, which intentionally provides more impressions for highly​ ​retentive games at the expense of near term monetization, and in Q2 the near-term impact on​ ​younger cohorts has been larger than we anticipated. Our internal testing tells us that, over time,​ ​longer retention should overcome a reduction in hourly monetization. Monetization was also​ ​negatively impacted by disabling the sale of cross-experience game passes, albeit to a lesser​ ​degree.​ ​Despite near-term monetization headwinds, our platform is more diversified than ever and we​ ​continue to observe a consistent velocity of new top titles. We reached over 120 million DAUs in​ ​the quarter who spent over 29 billion Hours on our platform. We saw new user sign-up activity​ ​1​ ​On a constant currency basis, revenue was up 36%​​year-over-year and bookings was up 7%​ ​year-over-year. Constant currency is calculated by converting our current period bookings and associated​ ​revenue generated from current period bookings into U.S. dollars using the comparative prior period’s​ ​monthly exchange rates for our non-USD currencies, rather than the actual average exchange rates in effect​ ​during the current period. By adjusting revenue and bookings for constant currency, we are able to provide a​ ​framework for assessing how our business performed excluding the effect of foreign currency rate​ ​fluctuations.​ ​2​

 
​improve throughout the quarter, benefitting from normal seasonality and the reinstatement of​ ​Roblox in Russia. Retention of existing users remained stable relative to historical periods.​ ​We also made progress on several important initiatives including increasing age-check penetration​ ​(now at 57%), the successful rollout of Roblox Kids and Select accounts, and improvements in​ ​on-platform communications. On the creator front, we have now launched the planned increase in​ ​the Developer Exchange (DevEx) rate rewarding in-game spend from over 18 (O18) users in the​ ​U.S.​ ​With nearly 4% of global gaming revenue running through Roblox and a vertically integrated​ ​platform that unifies discovery, a deeply capable game engine, world-class safety, and a robust​ ​economy, Roblox is uniquely positioned to capture 10% of the global gaming market. This starts​ ​with a re-imagined Roblox homepage that brings video discovery and creation to our users with​ ​five tabs: Home. Moments. Build. Chat. Me. We’ve recently announced several other platform​ ​updates in support of this vision:​ ​●​ ​Expanding Content by Removing Limits:​​We are unlocking​​a large and growing segment of​ ​the gaming market by targeting 2D, in addition to high fidelity games.​ ​●​ ​Fueling Discovery with Moments:​​We are optimizing​​our discovery algorithm and bringing​ ​curated digital entertainment directly onto the Roblox home screen.​ ​●​ ​Connecting All Users with Safety and Civility:​​Our​​world-class safety infrastructure will​ ​support integrated voice, video, and text communications on Roblox.​ ​●​ ​Using AI to Turn Everyone into a Builder:​​Build will​​bring prompt-based game creation to​ ​over 120 million DAUs directly in the Roblox mobile app, enabling game creation with no​ ​coding experience.​ ​In today’s letter, we will provide additional details on Q2 results, changes to our financial outlook,​ ​and the growth initiatives that will power the future of the Roblox platform.​ ​3​

 
​Expanding Content by Removing Limits​ ​Today, the global gaming market is approximately $200 billion annually, with the O18 segment​ ​accounting for roughly 80% of total spend. Expanding our presence with older audiences is central​ ​to our goal of capturing 10% of the market, and we continue to make progress. In Q2, O18 users​ ​represented 27% of DAUs who have age checked, while in the U.S. O18 users represented​ ​approximately one-third of age-checked DAUs.​​2​ ​DAUs and Hours for the U.S. O18 cohorts are​ ​growing 32% and 27% year-over-year, respectively, led by 42% growth in DAUs and 37% growth​ ​in Hours for the 18–34 cohort.​​3​ ​Importantly, U.S. O18 users monetize over 50% higher than U18​ ​users.​​3​ ​To better serve this user base and continue to drive its growth, we are expanding the​ ​technological capabilities of the platform to support the full spectrum of gaming: from high-fidelity,​ ​multi-player 3D to single-player 2D gaming and everything in between.​ ​Bringing 2D Gaming to Roblox.​​2D mobile gaming represents​​a large and growing share of the​ ​global gaming market—particularly among players over 25. In fact, 2D gaming accounts for​ ​approximately one-third of the U.S. gaming market. While we continue to push the frontier of​ ​high-fidelity, 3D gaming, we are simultaneously upgrading our platform and engine to support 2D,​ ​single-player, offline, and turn-based games on any device. Combined with our ability to reach and​ ​engage audiences, supported by new innovations like Build, this expansion into 2D gaming​ ​positions us to capture a greater share of the O18 cohort.​ ​AI-Powered Photorealistic Gaming with Roblox Reality.​​We are continuing to push the​ ​technological frontier toward photorealistic multiplayer gaming with Roblox Reality. To accelerate​ ​this work, we acquired​​Morpheus AI​​, the company that​​pioneered Self Forcing and pixel-latent​ ​world models that turn slow, offline video models into fast, interactive, real-time generation​ ​engines. These technological advancements strengthen our ability to bring Roblox Reality to life.​ ​This foundational, multi-year bet expands what is possible on Roblox and widens our competitive​ ​moat.​ ​Accelerating Novel Game Creation.​​In June, we rolled​​out a targeted DevEx rate increase to​ ​incentivize novel game creation and we finalized our​​first incubator cohort​​, including 26 teams​ ​focused on building novel content. Over the next six months, Roblox will work with these teams​ ​providing hands-on mentorship and both on-platform and off-platform user acquisition support.​ ​3​ ​See “Special Note Regarding Age-Check” for additional details.​ ​2​ ​As of the seven days ended June 30, 2026, on a global basis, 35% of users who have age-checked are​ ​under 13, 38% are between the ages of 13 and 17, and 27% are O18.​ ​4​

 
​This quarter we also signed new partnerships with renowned game developers to bring popular​ ​game franchises on desktop, console, and mobile to Roblox. We believe titles from these studios​ ​will set new standards for visual fidelity and gameplay depth on Roblox, and will engage both our​ ​existing users and attract new audiences. Game launches from these partners will come later this​ ​year and on a rolling basis throughout 2027 and beyond.​ ​Fueling Discovery with Moments​ ​Discovery is an important lever supporting growth on our platform. With millions of games and over​ ​120 million DAUs, the way we connect players to the right content shapes the health of our entire​ ​ecosystem. We fundamentally believe that optimizing for long-term retention increases the lifetime​ ​value of our users: players who stay longer return more often, bring their friends, and engage more​ ​deeply—fueling the Roblox flywheel.​ ​Reimagining Moments.​​We are reimagining and relocating​​Moments​​. What began as a feed for​ ​gameplay clips is evolving into a native, homepage tab in the Roblox app featuring an expanding​ ​diversity of short form video content designed to enable users to discover new games and see​ ​updates to their favorite games. By embedding this content directly on the homepage via carousels​ ​and contextual video, we are creating a frictionless bridge from passive viewing to active play in a​ ​single tap.​ ​Roblox content surpassed one trillion all-time views on YouTube as of the end of 2025,​ ​demonstrating enormous demand that has historically lived off-platform. When Roblox content is​ ​viewed on our platform, we can directly link the discovery process to gameplay. Over time, this will​ ​better position Moments as both a high-conversion discovery tool and a premium advertising​ ​surface for brand partners and content creators. Moments will initially be available for​ ​age-checked users over 16 in select markets, with plans to safely expand to the under 16 audience​ ​over time.​ ​Moments is also increasingly powerful alongside Build. As AI helps expand the volume of​ ​user-generated games on our platform, discovery becomes more important than ever. Watching a​ ​game in action and then playing it with one tap creates a unique path to discovery for a wave of​ ​new content from Build. Together, Moments and Build fuel our growth flywheel where more​ ​content and richer discovery drive deeper engagement and retention.​ ​Updated RFY Algorithm.​​In April, we began deploying updates to our discovery engine,​ ​specifically our “Recommended For You” algorithm, to optimize for long-term player retention. The​ ​system now evaluates player behavior over a 28-day window – up from 7 days – incorporating new​ ​5​

 
​signals like play through rate and first play bounce rate,​​4​ ​together with spend days and Robux​ ​spent per user. Early results confirm a positive lift to long-term retention and engagement. We are​ ​continuing to optimize our discovery algorithm using regionalized age-check data to further refine​ ​recommendations and better surface relevant content to specific age cohorts.​ ​Connecting All Users with Safety and Civility​ ​Roblox continues to push forward on setting the Global Standard for healthy, safe, and​ ​age-appropriate digital engagement. In 2026, we have taken significant steps towards this goal​ ​with the global rollout of proactive age-checks to access communications in January and Roblox​ ​Kids and Select age-based accounts in June. We also continue to refine our AI-powered text and​ ​voice moderation systems to help maintain high levels of safety for all users on our platform.​ ​Driving Steady Progress in Age-Check Penetration.​​By the end of Q2, 57% of global DAUs have​ ​age-checked, led by strong execution in developed countries. Specifically, the U.S. and Australia​ ​surpassed 70% penetration—advancing toward our 90% long-term goal. APAC also saw a​ ​meaningful uptick as we modified Verified Parental Consent (VPC) requirements in some countries.​ ​In Indonesia, for example, the age-check penetration rate saw a double digit percentage increase​ ​in Q2. Notably, age-check penetration rates with U18 users are 60% globally and 75% in the U.S.​ ​Kids & Select Accounts Enhance Age-Appropriate Games.​​In June, we introduced age-based​ ​accounts to better align content access with communication settings and parental controls,​ ​fostering a safer environment for users of all ages. To date, the short-term impact from Kids and​ ​Select on engagement and bookings has been in line with our expectations, and we have seen an​ ​increase in age-check penetration in younger cohorts. The catalog of content available to younger​ ​users continues to expand rapidly: Kids and Select accounts now offer access to about 30,000​ ​games, representing a nearly 50% increase since launch.​ ​Safe Multi-Modal Communications.​​We have started to​​see improvement in on-platform​ ​communications, though we still have more work to do to drive on-platform communications above​ ​pre-age check levels. Following last quarter’s reduction in on-platform communication, we are​ ​executing a multi-modal roadmap across text, voice, and video to increase chat density and​ ​improve player experience.​ ​4​ ​Play through rate represents the percentage of players who, when shown a game icon on “Recommended​ ​For You”, press the Play button and join the game. First play bounce rate represents the percentage of users​ ​who launch a specific game for the very first time and exit (bounce) within a short initial threshold—typically​ ​under 30 to 90 seconds—without engaging in meaningful gameplay.​ ​6​

 
​In May, we shipped​​Global Chat​​, which​​scaled to an​​average of 30 million daily messages in June.​ ​July’s rollout of​​Quick Words​​is already generating​​over five million safe, effortless gameplay​ ​coordinating messages per day. We will build on this momentum with the launch of several new​ ​communication tools. As a first step, in Q3 we are deploying​​In-Experience Friends Chat​​, which​ ​brings real-time text messaging directly into a game. By moving friends chat directly into the main​ ​chat window, users can easily switch between server chat, global chat, and friends chat without​ ​leaving their game. Together, these tools are aimed at keeping players seamlessly connected​ ​within our native ecosystem.​​Voice Typing​​is a speech to text feature that uses Roblox's speech AI​ ​models to seamlessly allow users to chat with other users in the server without slowing down​ ​game play.​​Integrated Voice Calls​​will enable users​​to initiate real-time, high-fidelity voice​ ​communications directly within the Roblox app.​ ​Longer term, our vision is to become the definitive platform for interactive entertainment, play, and​ ​connection. Today, co-play (playing together with friends) drives a large share of playtime on​ ​Roblox, yet we believe a significant portion utilizes off-platform communication tools which may​ ​not align with our safety standards. Our roadmap includes a plan to provide users the option to​ ​video chat with friends or stream with their Roblox avatar. Because the calls will originate within​ ​the Roblox app and accompany users as they move between games, they deliver a safer, richer,​ ​more immersive connection than any off-platform alternative.​ ​Leveraging AI to Turn Everyone into a Builder​ ​Roblox was founded on a simple premise: “You Make the Game.” For two decades, we have​ ​pushed technological boundaries to make it easier for creators to bring their ideas to life. Today, AI​ ​is democratizing game creation – enabling more users to build than ever before.​ ​Build: Prompt-Based Game Creation for All Users.​​Earlier this month, we announced​​Build​​, a new​ ​mobile-first creation tab in the Roblox app. Powered by open-source and proprietary Roblox​ ​models, Build enables users, regardless of development experience, to turn a set of prompts into a​ ​playable game by automatically handling complex mechanics, coding, and analytics. We recently​ ​launched a public alpha in New Zealand for users aged 9+, with plans for a broader rollout in​ ​coming months. A base tier of Build is available at no cost, with paid tiers for power users.​ ​Empowering every user to become a creator enables more content creation, driving deepening​ ​engagement, and further fueling the Roblox flywheel. While Build is early in its rollout, the​ ​technology is advancing rapidly and the quality of games created during internal testing has been​ ​7​

 
​impressive. You can see several examples of live​​gameplay​​from Build - we can't wait for what’s to​ ​come.​ ​AI Momentum and Adoption.​​Creator use of AI tools​​is scaling rapidly, with adoption rates among​ ​our top 1,000 and top 10,000 creators by Robux spent up approximately 15 percentage points​ ​quarter over quarter. Enhancements to our AI-native Studio helped drive a 20% sequential​ ​increase in creators using our agentic Studio Assistant. Additionally, in a survey of several​ ​thousand Roblox creators who use AI for development work, 95% said AI speeds up their timeline​ ​to launch new games or game updates into production, of which nearly half experienced an over​ ​50% acceleration in publishing timeline. These advancements reinforce our vision to redefine the​ ​future of Play—freeing creators from tedious technical work so they can focus on high-value​ ​creative design. Adoption of our 3D generative AI tools continues to scale. Creators are now​ ​generating over 60,000 3D assets per day and nearly 1,400 games use Cube-generated content​ ​daily—early evidence that these tools are gaining traction with creators ranging from emerging​ ​developers to some of the platform's largest experiences.​ ​Advanced Creator Agents.​​Over the next several months,​​we are shipping a suite of professional​ ​AI agents across Build and Studio to further streamline development: 1) Playtesting Agent​ ​automates QA and bug detection, eliminating the need for manual testing, 2) Analytics Agent​ ​provides creators performance insights via natural language queries, and 3) Experiment Agent​ ​recommends targeted A/B tests to optimize engagement, retention, and monetization.​ ​Key Metrics and Financials: Q2 2026​ ​Users & Engagement.​​DAUs grew 10% year-over-year to​​123 million and Hours grew 5%​ ​year-over-year to 29 billion despite challenging prior year comparables. In June, Roblox was​ ​reinstated in Russia. This had a modest benefit to sequential DAUs and Hours trends, though it​ ​remained an approximate three percentage point headwind to year-over-year growth in DAUs and​ ​Hours, as we were unblocked in Russia late in the quarter.​ ​8​

 
​We continued to see strong international growth. For example, DAU growth in Japan and India was​ ​67% and 64% year-over-year, respectively, while DAUs in the U.S. and Canada grew 6%​ ​year-over-year. Similar to user growth, Hours in Japan and India grew 61% and 59%​ ​year-over-year, respectively, while Hours in the U.S. and Canada grew 1%, reflecting challenging​ ​prior year comparables.​ ​Content Diversity.​​We continued to see a broadening​​of content across the platform; our updated​ ​search and discovery algorithm has helped new games like​​Animal Hospital​​,​​Grow a Garden 2, and​ ​Kick a Lucky Block​​quickly move from initial release​​to top experiences. The long tail of content​ ​showed continued strength, as experiences outside of the top 10 saw 25% year-over-year growth​ ​in Hours and greater than 20% year-over-year growth in Robux spend.​ ​Overall, our platform today is more diversified than ever and content breadth has improved​ ​significantly. In Q2, our top 10 games accounted for about 20% of Hours, down from 30% in the​ ​same time period three years ago.​ ​Monetization.​​Overall, average monthly unique payers​​(MUPs) increased to 27 million, up 15%​ ​year-over-year. We continued to see solid payer growth in international markets, as MUPs outside​ ​of the U.S. and Canada grew 23% year-over-year. While payer growth was strong, monetization in​ ​the quarter reflects the impact of changes to our discovery algorithm, which resulted in a mix-shift​ ​towards lower monetizing content.​ ​Cost Components.​ ​As a % of Revenue​ ​As a % of Bookings​ ​Q2 2026​ ​Q2 2025​ ​bps​ ​Change​​(A)​ ​Q2 2026​ ​Q2 2025​ ​bps​ ​Change​​(A)​ ​Cost of Revenue​ ​20%​ ​22%​ ​(190)​ ​NM​​(B)​ ​NM​​(B)​ ​NM​​(B)​ ​Developer Exchange Fees​ ​25%​ ​29%​ ​(460)​ ​23%​ ​22%​ ​130​ ​Certain Infrastructure and Trust & Safety​ ​Expense​ ​16%​ ​14%​ ​190​ ​15%​ ​11%​ ​450​ ​Personnel Costs excl. Stock-Based​ ​Compensation Expense​ ​19%​ ​23%​ ​(330)​ ​18%​ ​17%​ ​120​ ​(A)​ ​Change is calculated using precise figures and may not sum based on the rounded percentages presented.​ ​(B)​ ​Cost of revenue as a percentage of bookings is not meaningful as the vast majority of these costs are deferred​ ​and will be recognized over the estimated average lifetime of a paying user, which was 27 months for both Q2​ ​2026 and Q2 2025.​ ​9​

 
​●​ ​Cost of revenue grew 24% year-over-year, totaling $292 million. In Q2 2026, the share of​ ​bookings from lower-cost platforms grew relative to the prior year, resulting in lower​ ​payment processing fees in the current period as a percentage of bookings.​ ​●​ ​Developer Exchange (DevEx) fees grew 15% year-over-year, totaling $363 million. The​ ​growth in DevEx fees reflected the increase to creator earnings we announced on​ ​September 5, 2025.​ ​●​ ​Certain Infrastructure and Trust & Safety expenses grew 54% year-over-year, totaling $236​ ​million. The increase was driven by an increase in AI-related investments, as well as higher​ ​costs related to trust and safety, including safety-related marketing.​ ​●​ ​Personnel costs excluding stock-based compensation expenses grew 16% year-over-year,​ ​totaling $283 million, driven by an increase in headcount compared to the same period a​ ​year ago.​ ​Consolidated net loss & Adjusted EBITDA.​​Consolidated net loss was $185 million, compared to​ ​$280 million in Q2 2025. Adjusted EBITDA was $152 million, compared to $18 million in Q2 2025.​ ​Adjusted EBITDA excludes adjustments for an increase in deferred revenue of $99 million and a​ ​decrease in deferred cost of revenue of $9 million, or a total change in deferrals of $108 million in​ ​Q2 2026 compared to a total change in net deferrals of $301 million in Q2 2025.​ ​Cash Flow.​​Operating cash flow was $318 million in Q2 2026 compared to $199 million in Q2 2025,​ ​and free cash flow totaled $294 million in Q2 2026 compared to $177 million in Q2 2025. As a​ ​reminder, operating and free cash flow in Q2 2025 included a $30 million payout to a creator that​ ​was delayed from Q1 2025. Total cash, cash equivalents, and investments was $6.1 billion as of​ ​June 30, 2026, an increase of $1.4 billion compared to the previous year’s balance.​ ​Share Repurchase Program.​​On May 19, 2026, we announced that our Board of Directors​ ​authorized the repurchase of up to $3 billion of our common stock with the intent to repurchase $1​ ​billion over the twelve months following the date of the announcement. The program is designed to​ ​partially offset dilution from employee equity grants while also preserving flexibility to invest in​ ​future growth opportunities. In Q2 2026, we repurchased 8.2 million shares for approximately $380​ ​million.​ ​Share Count.​​Our fully diluted share count was 752 million shares as of June 30, 2026, an​ ​increase of 2% compared to the previous year. Equity is an important part of hiring and retaining​ ​exceptional people and we will continue to strike a balance between dilution and the key value​ ​drivers in our business, namely bookings and free cash flow growth.​ ​10​

 
​GAAP Accounting & Profitability.​​For GAAP accounting, the vast majority of the Q2 bookings and​ ​associated payment processing fees are deferred and will be recognized as revenue and cost of​ ​revenue, respectively, over the estimated average lifetime of a paying user, which was 27 months​ ​during Q2 2026. Meanwhile, our other operating costs, which include DevEx fees, personnel costs,​ ​and certain infrastructure and trust & safety expenses, are recognized during the period.​ ​Guidance​ ​Our conviction in the ability to deliver 20%+ compounded top line growth over the long term has​ ​not changed. As we’ve said before, the trajectory of this growth will be non-linear due to the​ ​inherent variability of our business and the timing of investment necessary to scale. For example,​ ​in 2026, we are making foundational platform changes across safety and discovery and we are​ ​investing aggressively in AI-enablement for creators – all of which leads to a wider range of​ ​outcomes for the full year. In light of these changes, we are accelerating our previously announced​ ​transition to quarterly-only guidance by one quarter, issuing guidance for Q3, but not the full year.​ ​Given our long-term focus we do not believe annual guidance is a helpful tool for investors.​ ​For Q3 2026, we expect revenue to increase by 4% to 10% year-over-year, and bookings to​ ​decline 14% to 18% year-over-year​​5​​. We expect a sequential increase in DAUs, benefitting from​ ​seasonality and our recent discovery algorithm changes, though monetization softness observed​ ​in Q2 is expected to persist in Q3.​ ​Given our expectations for Q3 bookings, we expect fixed cost deleveraging. Additionally, we​ ​anticipate incremental investments in infrastructure to support AI-related initiatives like Build,​ ​Roblox Reality, and Moments.​ ​In Q3 2026, we expect operating cash flow in the range of $110 million to $175 million and free​ ​cash flow in the range of $(60) million to $5 million, including previously disclosed back-half​ ​loaded capital expenditures. Our Q3 operating and free cash flow expectations include an​ ​approximate $40 million year-over-year headwind to working capital related to the timing of​ ​creator payouts.​ ​5​ ​Revenue is expected to grow year-over-year despite an expected decline in bookings reflecting our GAAP​ ​revenue recognition policy, whereby the vast majority of bookings are recognized as revenue over 27 months.​ ​As a result, Q3 2026 revenue includes flow-through from prior period bookings, particularly elevated​ ​bookings throughout 2025.​ ​11​

 
​Guidance​ ​Q3 2026​ ​($ in millions)​ ​Low​ ​High​ ​Revenue​​(A)​ ​$ 1,413​ ​$ 1,490​ ​YoY %​ ​4%​ ​10%​ ​Bookings​​(A)​ ​$ 1,576​ ​$ 1,653​ ​YoY %​ ​(18)%​ ​(14)%​ ​Consolidated net loss​​(B)​ ​$ (348)​ ​$ (307)​ ​Adjusted EBITDA​ ​$ —​ ​$ 41​ ​Total net increase in deferred revenue and deferred cost of revenue​ ​$ 158​ ​$ 158​ ​Net cash and cash equivalents provided by operating activities​ ​$ 110​ ​$ 175​ ​Capital expenditures and purchases of intangible assets​ ​$ (170)​ ​$ (170)​ ​Free cash flow​​(A)​ ​$ (60)​ ​$ 5​ ​YoY %​ ​NM​ ​(99)%​ ​(A)​ ​The reconciliations from revenue to bookings, consolidated net loss to Adjusted EBITDA, and operating cash flow​ ​to free cash flow are provided in the following section GAAP to Non-GAAP Reconciliations. Our revenue guidance​ ​assumes that there are no material changes in estimates used in revenue recognition, such as the estimated​ ​consumable/durable allocation of virtual goods purchased on the platform and the estimated average lifetime of a​ ​paying user.​ ​(B)​ ​Consolidated net loss guidance excludes loss contingency accruals, given the inherent uncertainty in estimates of​ ​future probability and/or range of loss based on the facts and circumstances that exist as of July 30, 2026.​ ​12​

 
​Roblox Corporation​​Financial Statements​ ​ROBLOX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS​ ​Unaudited ($ in millions)​ ​As of​ ​June 30, 2026​ ​December 31, 2025​ ​Assets​ ​Current assets:​ ​Cash and cash equivalents​ ​$ 991​ ​$ 1,205​ ​Short-term investments​ ​2,023​ ​1,850​ ​Accounts receivable—net of allowances​ ​498​ ​901​ ​Prepaid expenses and other current assets​ ​139​ ​109​ ​Deferred cost of revenue, current portion​ ​883​ ​833​ ​Total current assets​ ​4,534​ ​4,898​ ​Long-term investments​ ​3,070​ ​2,493​ ​Property and equipment—net​ ​823​ ​885​ ​Operating lease right-of-use assets​ ​689​ ​651​ ​Deferred cost of revenue, long-term​ ​421​ ​448​ ​Intangible assets, net​ ​20​ ​18​ ​Goodwill​ ​163​ ​143​ ​Other assets​ ​25​ ​21​ ​Total assets​ ​$ 9,745​ ​$ 9,557​ ​Liabilities and Stockholders’ equity​ ​Current liabilities:​ ​Accounts payable​ ​$ 24​ ​$ 65​ ​Accrued expenses and other current liabilities​ ​479​ ​396​ ​Developer exchange liability​ ​421​ ​496​ ​Deferred revenue—current portion​ ​4,596​ ​4,169​ ​Total current liabilities​ ​5,520​ ​5,126​ ​Deferred revenue—net of current portion​ ​2,308​ ​2,337​ ​Operating lease liabilities​ ​669​ ​643​ ​Long-term debt, net​ ​1,009​ ​993​ ​Other long-term liabilities​ ​110​ ​83​ ​Total liabilities​ ​9,616​ ​9,182​ ​Stockholders' equity​ ​Common stock​ ​—*​ ​—*​ ​Additional paid-in capital​ ​5,661​ ​5,438​ ​Accumulated other comprehensive income/(loss)​ ​(19)​ ​17​ ​Accumulated deficit​ ​(5,490)​ ​(5,061)​ ​Total Roblox Corporation stockholders' equity​ ​152​ ​394​ ​Noncontrolling interest​ ​(23)​ ​(19)​ ​Total stockholders' equity​ ​129​ ​375​ ​Total liabilities and stockholders' equity​ ​$ 9,745​ ​$ 9,557​ ​* Amounts round to zero.​ ​13​

 
​ROBLOX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS​ ​Unaudited ($ in millions, except number of shares which are in thousands, and per share amounts)​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​2026​ ​2025​ ​2026​ ​2025​ ​Revenue​ ​$1,469​ ​$1,081​ ​$2,911​ ​$2,116​ ​Costs and expenses:​ ​Cost of revenue​​(1)​ ​292​ ​236​ ​586​ ​461​ ​Developer exchange fees​ ​363​ ​316​ ​786​ ​598​ ​Infrastructure and trust & safety​ ​363​ ​261​ ​687​ ​503​ ​Research and development​ ​420​ ​385​ ​842​ ​759​ ​General and administrative​ ​199​ ​152​ ​408​ ​271​ ​Sales and marketing​ ​61​ ​53​ ​125​ ​101​ ​Total cost and expenses​ ​1,698​ ​1,403​ ​3,434​ ​2,693​ ​Loss from operations​ ​(229)​ ​(322)​ ​(523)​ ​(577)​ ​Interest income​ ​59​ ​49​ ​114​ ​95​ ​Interest expense​ ​(10)​ ​(11)​ ​(20)​ ​(21)​ ​Other income/(expense), net​ ​(3)​ ​5​ ​(1)​ ​9​ ​Loss before income taxes​ ​(183)​ ​(279)​ ​(430)​ ​(494)​ ​Provision for/(benefit from) income taxes​ ​2​ ​1​ ​3​ ​2​ ​Consolidated net loss​ ​(185)​ ​(280)​ ​(433)​ ​(496)​ ​Net loss attributable to the noncontrolling interest​ ​(2)​ ​(2)​ ​(4)​ ​(3)​ ​Net loss attributable to common stockholders​ ​$ (183)​ ​$ (278)​ ​$ (429)​ ​$ (493)​ ​Net loss per share attributable to common​ ​stockholders, basic and diluted​ ​$ (0.26)​ ​$ (0.41)​ ​$ (0.60)​ ​$ (0.73)​ ​Weighted-average shares used in computing net loss​ ​per share attributable to common​ ​stockholders—basic and diluted​ ​716,767​ ​684,837​ ​714,246​ ​678,307​ ​(1)​ ​Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.​ ​14​

 
​ROBLOX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS​ ​Unaudited ($ in millions)​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​2026​ ​2025​ ​2026​ ​2025​ ​Cash flows from operating activities:​ ​Consolidated net loss​ ​$(185)​ ​$(280)​ ​$(433)​ ​$(496)​ ​Adjustments to reconcile consolidated net loss to net cash​ ​and cash equivalents provided by operating activities:​ ​Depreciation and amortization expense​ ​65​ ​54​ ​126​ ​108​ ​Stock-based compensation expense​ ​282​ ​285​ ​557​ ​544​ ​Operating lease non-cash expense​ ​34​ ​30​ ​66​ ​60​ ​Accretion on marketable securities, net​ ​(11)​ ​(15)​ ​(23)​ ​(34)​ ​Other adjustments​ ​(3)​ ​5​ ​(11)​ ​5​ ​Changes in operating assets and liabilities, net of​ ​effect of acquisitions:​ ​Accounts receivable​ ​41​ ​(123)​ ​407​ ​87​ ​Prepaid expenses and other current assets​ ​(7)​ ​(12)​ ​(34)​ ​(24)​ ​Deferred cost of revenue​ ​8​ ​(63)​ ​(24)​ ​(93)​ ​Other assets​ ​4​ ​(2)​ ​(1)​ ​(7)​ ​Accounts payable​ ​2​ ​(6)​ ​(32)​ ​12​ ​Accrued expenses and other current liabilities​ ​15​ ​13​ ​68​ ​8​ ​Developer exchange liability​ ​(3)​ ​(32)​ ​(75)​ ​(25)​ ​Deferred revenue​ ​99​ ​363​ ​401​ ​538​ ​Operating lease liabilities​ ​(37)​ ​(28)​ ​(72)​ ​(53)​ ​Other long-term liabilities​ ​14​ ​10​ ​27​ ​13​ ​Net cash and cash equivalents provided​ ​by operating activities​ ​318​ ​199​ ​947​ ​643​ ​Cash flows from investing activities:​ ​Acquisition of property and equipment​ ​(22)​ ​(23)​ ​(55)​ ​(40)​ ​Purchases of intangible assets​ ​(2)​ ​—​ ​(2)​ ​—​ ​Payments related to business combinations, net of cash​ ​acquired​ ​(6)​ ​—​ ​(6)​ ​—​ ​Purchases of investments​ ​(966)​ ​(1,441)​ ​(2,983)​ ​(2,611)​ ​Maturities of investments​ ​569​ ​809​ ​1,649​ ​1,809​ ​Sales of investments​ ​284​ ​260​ ​577​ ​412​ ​Other investing activities​ ​1​ ​—​ ​3​ ​—​ ​Net cash and cash equivalents used in​ ​investing activities​ ​(142)​ ​(395)​ ​(817)​ ​(430)​ ​Cash flows from financing activities:​ ​Proceeds from issuance of common stock​ ​3​ ​27​ ​34​ ​64​ ​Repurchases of common stock​ ​(375)​ ​—​ ​(375)​ ​—​ ​Net cash and cash equivalents provided​ ​by (used in) financing activities​ ​(372)​ ​27​ ​(341)​ ​64​ ​Effect of exchange rate changes on cash and cash​ ​equivalents​ ​(1)​ ​5​ ​(3)​ ​6​ ​Net increase/(decrease) in cash and cash equivalents​ ​(197)​ ​(164)​ ​(214)​ ​283​ ​Cash and cash equivalents​ ​Beginning of period​ ​1,188​ ​1,159​ ​1,205​ ​712​ ​End of period​ ​$991​ ​$995​ ​$991​ ​$995​ ​15​

 
​Forward-Looking Statements​ ​This letter and the live webcast and Q&A session which will be held at 1:30 p.m. Pacific Time/4:30​ ​p.m. Eastern Time on Thursday, July 30, 2026 contain “forward-looking statements” within the​ ​meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995,​ ​including but not limited to, statements regarding our vision to connect one billion users with​ ​optimism and civility, our vision to reach 10% of the global gaming content market, our efforts to​ ​improve the Roblox platform, our trust and safety efforts, including our efforts to expand​ ​age-checking of​​users, our goal to drive the percent​​of users that have age-checked up, and our​ ​efforts related to Roblox Kids and Roblox Select,​​our investments in AI-powered initiatives,​ ​including Roblox Reality, Build, and other AI tools for creators, our efforts related to growing our​ ​global audience and broadening our content offering, including through 2D and novel games​ ​expansion, our efforts to improve creator economics, our partnership efforts, our efforts to improve​ ​discovery and communication engagement on platform, including through our search and​ ​discovery algorithm, Moments, and multi-modal communications, our efforts related to our​ ​subscription model, our efforts toward advertising on the platform, our efforts regarding user​ ​acquisition and retention, our recent and anticipated product launches,​​our business, product,​ ​strategy, and user growth, our investment strategy, including opportunities for and expectations of​ ​improvements in financial and operating metrics, including operating leverage, margin, free cash​ ​flow, operating expenses, and capital expenditures, our expectation of successfully executing​ ​such strategies and plans, our expectations of future net losses and net cash and cash equivalents​ ​provided by operating activities, our expectations regarding our share repurchase program,​ ​statements by our Chief Executive Officer and Chief Financial Officer, and our outlook and​ ​guidance for the third quarter 2026. These forward-looking statements are made as of the date​ ​they were first issued and were based on current plans, expectations, estimates, forecasts, and​ ​projections as well as the beliefs and assumptions of management. Words such as “expect,”​ ​“vision,” “envision,” “evolving,” “drive,” “anticipate,” “intend,” “maintain,” “should,” “believe,”​ ​“continue,” “plan,” “goal,” “opportunity,” “estimate,” “predict,” “may,” “will,” “could,”​​“hope,”​ ​“target,” “project,” “potential,” “might,” “shall,” “contemplate,”​​“would,” and “initiative” and​ ​variations of these terms or the negative of these terms and similar expressions are intended to​ ​identify these forward-looking statements. Forward-looking statements are subject to a number of​ ​risks and uncertainties, many of which involve factors or circumstances that are beyond our​ ​control. Our actual results could differ materially from those stated or implied in forward-looking​ ​statements due to a number of factors, including but not limited to risks detailed in our filings with​ ​the Securities and Exchange Commission (the “SEC”), including our annual reports on Form 10-K,​ ​our quarterly reports on Form 10-Q, and other filings and reports we make with the SEC from time​ ​to time. In particular, the following factors, among others, could cause results to differ materially​ ​from those expressed or implied by such forward-looking statements: our ability to successfully​ ​execute our business and growth strategy; the sufficiency of our cash and cash equivalents and​ ​investments to meet our liquidity needs, including the repayment of our senior notes; the demand​ ​for our platform in general; our ability to sustain virality of games on our platform; the seasonality​ ​of our business and the impact of viral games; our ability to retain and increase our number of​ ​users and creators, while adequately scaling our infrastructure as engagement increases; changes​ ​in the average lifetime of a paying user; the impact of inflation, tariffs, and global economic​ ​16​

 
​conditions on our operations; the impact of changing legal and regulatory requirements on our​ ​business; our ability to develop enhancements to our platform, and bring them to market in a timely​ ​manner; our ability to develop and protect our brand; any misuse of user data or other undesirable​ ​activity by third parties on our platform; our ability to maintain the security and availability of our​ ​platform; our ability to detect and minimize unauthorized use of our platform; the impact of our​ ​trust and safety efforts on our ability to attract and retain users and creators; and the impact of AI​ ​on our platform, users, and creators. Additional information regarding these and other risks and​ ​uncertainties that could cause actual results to differ materially from our expectations is included​ ​in the reports we have filed or will file with the SEC, including our annual reports on Form 10-K and​ ​our quarterly reports on Form 10-Q.​ ​The forward-looking statements included in this letter represent our views as of the date of this​ ​letter. We anticipate that subsequent events and developments will cause our views to change.​ ​However, we undertake no intention or obligation to update or revise any forward-looking​ ​statements, whether as a result of new information, future events or otherwise. These​ ​forward-looking statements should not be relied upon as representing our views as of any date​ ​subsequent to the date of this letter.​ ​Special Note Regarding Operating Metrics​ ​Additional information regarding our core financial and operating metrics disclosed above is​ ​included in the reports we have filed or will file with the SEC, including our annual reports on Form​ ​10-K and our quarterly reports on Form 10-Q and our supplemental materials, available at​ ​ir.roblox.com. We encourage investors and others to review these materials in their entirety.​ ​Special Note Regarding Age-Check​ ​In the first quarter of 2026, we transitioned from self-reported age data to ‘age-checked’ data. All​ ​age-checked metrics included herein are estimates derived from limited information and evolving​ ​methodologies and are not directly comparable to historical self-reported data. Age-check​ ​penetration is an average based on the last seven days of the quarter. Additionally, certain​ ​demographic data presented are estimates based on extrapolation from data on users who have​ ​undergone age-checks, which may not be representative of actual age demographics on the​ ​platform. For example, for certain metrics we have applied the demographic distribution of our​ ​current 'age-checked' DAUs to our 'non-age-checked' DAUs to estimate growth and monetization​ ​rates for our U.S. O18 and 18–34 DAUs compared to other age cohorts. Extrapolated results may​ ​not fairly represent the actual demographic split or engagement and monetization levels of the​ ​‘non-age-checked’ DAUs.​ ​17​

 
​Non-GAAP Financial Measures​ ​This letter contains the following non-GAAP financial measures: bookings, Adjusted EBITDA, and​ ​free cash flow.​ ​We use this non-GAAP financial information to evaluate our ongoing operations and for internal​ ​planning and forecasting purposes. We believe that this non-GAAP financial information may be​ ​helpful to investors because it provides consistency and comparability with past financial​ ​performance. However, non-GAAP financial measures have limitations in their usefulness to​ ​investors because they have no standardized meaning prescribed by GAAP and are not prepared​ ​under any comprehensive set of accounting rules or principles. In addition, other companies,​ ​including companies in our industry, may calculate similarly titled non-GAAP financial measures​ ​differently or may use other measures to evaluate their performance, all of which could reduce the​ ​usefulness of our non-GAAP financial information as a tool for comparison. As a result, our​ ​non-GAAP financial information is presented for supplemental informational purposes only and​ ​should not be considered in isolation from, or as a substitute for financial information presented in​ ​accordance with GAAP.​ ​Reconciliation tables of the most comparable GAAP financial measure to each non-GAAP financial​ ​measure used in this letter are included at the end of this letter. We encourage investors and​ ​others to review our business, results of operations, and financial information in their entirety, not​ ​to rely on any single financial measure, and to view these non-GAAP measures in conjunction with​ ​the most directly comparable GAAP financial measures.​ ​Bookings​​represent the sales activity in a given period​​without giving effect to certain non-cash​ ​adjustments, as detailed below. Substantially all of our bookings are generated from sales of virtual​ ​currency, which can ultimately be converted to virtual items on the Roblox platform. Sales of virtual​ ​currency reflected as bookings include one-time purchases or monthly subscriptions purchased​ ​via payment processors or through prepaid cards. Bookings are initially recorded in deferred​ ​revenue and recognized as revenues over the estimated period of time the virtual items purchased​ ​with the virtual currency are available on the Roblox platform (estimated to be the average lifetime​ ​of a paying user) or as the virtual items purchased with the virtual currency are consumed.​ ​Bookings also include an insignificant amount from advertising and licensing arrangements. We​ ​believe bookings provide a timelier indication of trends in our operating results that are not​ ​necessarily reflected in our revenue as a result of the fact that we recognize the majority of​ ​revenue over the estimated average lifetime of a paying user. The change in deferred revenue​ ​constitutes the vast majority of the reconciling difference from revenue to bookings. By removing​ ​these non-cash adjustments, we are able to measure and monitor our business performance​ ​based on the timing of actual transactions with our users and the cash that is generated from these​ ​transactions. Over the long term, the factors impacting our revenue and bookings trends are the​ ​same. However, in the short term, there are factors that may cause revenue and bookings trends to​ ​differ.​ ​18​

 
​Adjusted EBITDA​​represents our GAAP consolidated net loss, excluding interest income, interest​ ​expense, other (income)/expense, net, provision for/(benefit from) income taxes, depreciation and​ ​amortization expense, stock-based compensation expense, and certain other non-routine​ ​adjustments. We believe that, when considered together with reported GAAP amounts, Adjusted​ ​EBITDA is useful to investors and management in understanding our ongoing operations and​ ​ongoing operating trends. Our definition of Adjusted EBITDA may differ from the definition used by​ ​other companies and therefore comparability may be limited.​ ​Free cash flow​​represents the net cash and cash equivalents​​provided by operating activities, less​ ​purchases of property and equipment and intangible assets acquired through asset acquisitions.​ ​We believe that free cash flow is a useful indicator of our unit economics and liquidity that provides​ ​information to management and investors about the amount of cash and cash equivalents​ ​generated from our core operations that, after the purchases of property and equipment, and​ ​intangible assets acquired through asset acquisitions, can be used for strategic initiatives.​ ​19​

 
​GAAP to Non-GAAP Reconciliations​ ​Note: Due to rounding, numbers presented throughout this letter may not add up precisely to the​ ​totals provided.​ ​The following table presents a reconciliation of revenue, the most directly comparable financial​ ​measure calculated in accordance with GAAP, to bookings, for each of the periods presented (in​ ​millions, unaudited):​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​Reconciliation of revenue to bookings:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Revenue​ ​$1,469​ ​$1,081​ ​$2,911​ ​$2,116​ ​Add (deduct):​ ​Change in deferred revenue​ ​99​ ​365​ ​398​ ​543​ ​Other​ ​(11)​ ​(8)​ ​(21)​ ​(14)​ ​Bookings​ ​$1,557​ ​$1,438​ ​$3,288​ ​$2,645​ ​The following table presents a reconciliation of consolidated net loss, the most directly comparable​ ​financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the​ ​periods presented (in millions, unaudited):​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​Reconciliation of consolidated net loss​ ​to Adjusted EBITDA:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Consolidated net loss​ ​$(185)​ ​$(280)​ ​$(433)​ ​$(496)​ ​Add (deduct):​ ​Interest income​ ​(59)​ ​(49)​ ​(114)​ ​(95)​ ​Interest expense​ ​10​ ​11​ ​20​ ​21​ ​Other (income)/expense, net​ ​3​ ​(5)​ ​1​ ​(9)​ ​Provision for/(benefit from) income​ ​taxes​ ​2​ ​1​ ​3​ ​2​ ​Depreciation and amortization​ ​65​ ​54​ ​126​ ​108​ ​Stock-based compensation expense​ ​282​ ​285​ ​557​ ​544​ ​Legal settlement expenses​​(A)​ ​34​ ​—​ ​91​ ​—​ ​Other charges​ ​—​ ​2​ ​—​ ​2​ ​Adjusted EBITDA​ ​$152​ ​$18​ ​$251​ ​$76​ ​(A)​ ​Includes legal expenses related to settlements and settlement negotiations with certain states regarding​ ​youth-related consumer protection and digital safety matters. The Company has determined that these matters​ ​arise outside of the ordinary course of business, have limited historical precedent, are unpredictable in their​ ​magnitude, scope, and timing, and as a result are distinct from routine expenses incurred in ongoing operations.​ ​20​

 
​The following table presents a reconciliation of net cash and cash equivalents provided by​ ​operating activities, the most directly comparable financial measure calculated in accordance with​ ​GAAP, to free cash flow, for each of the periods presented (in millions, unaudited):​ ​Three Months Ended June 30,​ ​Six Months Ended June 30,​ ​Reconciliation of net cash and cash​ ​equivalents provided by operating​ ​activities to free cash flow:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Net cash and cash equivalents provided​ ​by operating activities​ ​$318​ ​$199​ ​$947​ ​$643​ ​Add (deduct):​ ​Acquisition of property and​ ​equipment​ ​(22)​ ​(23)​ ​(55)​ ​(40)​ ​Purchases of intangible assets​ ​(2)​ ​—​ ​(2)​ ​—​ ​Free cash flow​ ​$294​ ​$177​ ​$890​ ​$604​ ​21​

 
​Forward Looking Guidance​​6​​: GAAP to​ ​Non-GAAP Financial Measures Reconciliations​ ​The following table presents a reconciliation of revenue, the most directly comparable financial​ ​measure calculated in accordance with GAAP, to bookings (in millions):​ ​Guidance​ ​Three Months Ended​ ​September 30, 2026​ ​Reconciliation of revenue to bookings:​ ​Low​ ​High​ ​Revenue​ ​$ 1,413​ ​$ 1,490​ ​Add (deduct):​ ​Change in deferred revenue​ ​173​ ​173​ ​Other​ ​(10)​ ​(10)​ ​Bookings​ ​$ 1,576​ ​$ 1,653​ ​The following table presents a reconciliation of consolidated net loss, the most directly comparable​ ​financial measure calculated in accordance with GAAP, to Adjusted EBITDA (in millions):​ ​Guidance​ ​Three Months Ended​ ​September 30, 2026​ ​Reconciliation of consolidated net loss to Adjusted EBITDA:​ ​Low​ ​High​ ​Consolidated net loss​​(A)​ ​$ (348)​ ​$ (307)​ ​Add (deduct):​ ​Interest income​ ​(50)​ ​(50)​ ​Interest expense​ ​11​ ​11​ ​Provision for/(benefit from) income taxes​ ​2​ ​2​ ​Depreciation and amortization​ ​75​ ​75​ ​Stock-based compensation expense​ ​310​ ​310​ ​Adjusted EBITDA​ ​$ —​ ​$ 41​ ​(A)​ ​Consolidated net loss guidance excludes loss contingency accruals, given the inherent uncertainty in estimates of​ ​future probability and/or range of loss based on the facts and circumstances that exist as of July 30, 2026.​ ​6​ ​Our revenue guidance assumes that there are no material​​changes in estimates used in our revenue recognition, such as​ ​the estimated consumable/durable allocation of virtual goods purchased on the platform and the estimated average lifetime​ ​of a paying user.​ ​22​

 
​The following table presents a reconciliation of net cash and cash equivalents provided by​ ​operating activities, the most directly comparable financial measure calculated in accordance with​ ​GAAP, to free cash flow (in millions):​ ​Guidance​ ​Three Months Ended​ ​September 30, 2026​ ​Reconciliation of net cash and cash equivalents provided by operating​ ​activities to free cash flow:​ ​Low​ ​High​ ​Net cash and cash equivalents provided by operating activities​ ​$ 110​ ​$ 175​ ​Add (deduct):​ ​Acquisition of property and equipment​ ​(170)​ ​(170)​ ​Free cash flow​ ​$ (60)​ ​$ 5​ ​23​