Exhibit 99.1

 
​3Q26 Highlights​ ​g​ ​Third Quarter 2026 Financial and Operational Highlights​

 
​To Our Shareholders:​ ​Over the last 20 years, we have worked relentlessly to bring play to everyone, no matter where​ ​they are or how they connect. Roblox games work across devices, social graphs and geographies,​ ​and they scale to tens of millions of players. Roblox creators are able to focus on the most​ ​important part of their games: making them fun to play, because Roblox provides the​ ​infrastructure, the economy, the discovery, and especially: instant distribution on a platform with​ ​over 130 million DAUs. And, all of this interaction is supported by our industry-leading safety​ ​platform.​ ​During the last three months, we have witnessed an inflection point in AI adoption and content​ ​generation in the gaming industry overall, and on Roblox in particular. AI-enabled game creation,​ ​automation in code generation and AI supported asset creation are leading to an explosion of​ ​content​​.​​The time it takes to go from an idea to a​​playable game is compressing dramatically, and​ ​so is the time it takes to adapt a game for new devices.​ ​We have been embracing AI to accelerate creation since the first release of Roblox Studio​ ​Assistant in December 2023. Over the past month, more than 80% of the top 100 games on Roblox​ ​(ranked by hours engaged) used AI tools to accelerate creation, and the number of daily asset​ ​uploads to the Roblox cloud tripled month-over-month. Since Q2, time spent using AI tools​ ​(including Build, Studio Assistant, and external AI via MCP) tripled among our top creators, and​ ​those using our MCP server daily grew nearly 5x. In Q3,​​Break and Steal an Egg​​and​​Huss Valley​ ​were both created almost entirely with AI and both broke into the Roblox top 20 (ranked by​ ​concurrent players). Build is our new prompt-to-game creation tool. Since its alpha launch in New​ ​Zealand, Singapore, Serbia and Thailand, more than 500,000 users have used Build – and have​ ​published over 70,000 games.​ ​1​

 
​Percent of Top 1,000 Games Launched in Last 90 Days​ ​(Games ranked by Hours Engaged over last 28 days)​ ​Daily Users of our MCP Server​ ​% of Development Time Using AI (Top 1,000 Games)​ ​(Games ranked by Robux Spent over last 28 days)​ ​Asset Uploads​ ​(7-day Average)​ ​Source: Internal Company Data​ ​Roblox is uniquely positioned to capture this moment. As traditional barriers to software and​ ​content creation fall, distribution, audience aggregation, monetization, discovery, and safety​ ​become critical for growth. These are areas of unique strength for Roblox. With the explosion of AI​ ​usage we have launched two new initiatives: 1) Roblox Everywhere, and 2) “The Universal Player,”​ ​which is an expanded vision of our platform. Our Universal Player initiative includes the goal of​ ​enabling the capability to import any existing console, PC, or mobile game onto Roblox. This will be​ ​supported by improved engine capabilities that utilize AI. Together with the Roblox App, these​ ​initiatives will further support content and audience growth on Roblox, enabling us to replicate the​ ​success we’ve had with our under 18 (U18) users with our 18 and over (O18) cohort. Our vision for​ ​the future of gaming is comprised of three distinct platform initiatives:​ ​2​

 
​1.​ ​Roblox App + AI-Acceleration​​in which tools like Build and Studio Assistant enable a step​ ​function change in the speed, quality and ease of native Roblox development.​ ​2.​ ​Roblox Everywhere​​in which creators will have the ability to self-publish standalone games​ ​created on Roblox to the app store of their choice, enabling Roblox and creators to​ ​monetize off-platform audiences while simultaneously expanding our content portfolio.​ ​Creators can build once, publish anywhere and expand their reach, while still benefiting​ ​from all that the Roblox platform offers, including our economy, social graph,​ ​communications, and safety. We believe this flexibility will attract new creators that may​ ​not have published on Roblox before. In the first half of next year, we expect to launch the​ ​first phase by publishing select top games via Roblox Everywhere.​ ​3.​ ​The Universal Player​​in which AI is used to seamlessly​​import any existing game into the​ ​Roblox cloud platform while transforming it to run multiplayer, on any device (at the upper​ ​edge of the device’s performance capabilities), with instant join, instant UGC updates, local​ ​3D, and access to Roblox services for discovery, safety, communication, and monetization.​ ​Our vision is to capture 10% of the global gaming market and an even greater share in the U.S. We​ ​continued our progress toward this goal in Q3. Revenue for the quarter was $1.6 billion, up 16%​ ​year-over-year, and bookings were $1.7 billion, surpassing the high end of our guidance range, and​ ​down 12% year-over-year​​. While bookings were down 12% year-over-year, reflecting a​1 ​comparison to the extraordinary growth we experienced in 2025, Q3 bookings were up over 50%​ ​on a two-year basis. In Q3, operating cash flow was $395 million and free cash flow was $364​ ​million. Daily active users (DAUs) grew 12% quarter-over-quarter to 138 million, and hours engaged​ ​(Hours) reached nearly 34 billion, up 17% quarter-over-quarter.​ ​In this letter, we provide additional details on our Q3 operating and financial performance, as well​ ​as details on five components of the Roblox platform and ecosystem we believe will power our​ ​expansion with the O18 audience.​ ​1​ ​On a constant currency basis, the revenue and bookings year-over-year growth rates were consistent.​ ​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.​ ​3​

 
​Powering our Next Era of Growth​ ​We see long-term value opportunities in five key areas that are inherently part of our Roblox​ ​architecture:​ ​1.​ ​Roblox is a distribution platform powered by an integrated social graph.​ ​2.​ ​Roblox is a UGC creation platform with advanced discovery that drives growth.​ ​3.​ ​Roblox has an unparalleled data set that supports hundreds of proprietary models for​ ​safety, discovery, and creation.​ ​4.​ ​Roblox Universal Player will act as a platform to support creation loops, whether powered​ ​by import, Build or external AI via MCP.​ ​5.​ ​Roblox Build and Studio Assistant are harnesses that can support iterative workflows and​ ​route prompts to a range of models.​ ​Accelerated by AI, the power of these assets is propelling our expansion, particularly with the O18​ ​audience.​ ​1. Roblox is a distribution platform powered by an integrated social​ ​graph​ ​When “anyone can create a game” materializes, a simple, scalable and instant global distribution​ ​platform increasingly becomes one of the most valuable assets in gaming. As content becomes​ ​abundant, attention and connection become scarce. What sets our distribution apart is that it runs​ ​on social connections: people come to Roblox to play with their friends, so every new game can​ ​reach players through an existing social graph, through friends inviting friends, and through social​ ​influencers, which we believe enables great content to find its ideal audience faster than on any​ ​other platform.​ ​Scaled Distribution.​​In Q3, 138 million DAUs came​​to Roblox, spending nearly 34 billion Hours on​ ​the platform. Roblox has experienced massive growth over the past three years, with DAUs and​ ​Hours both nearly doubling since Q3 2023. Today, approximately 20% of the U.S. U18 gaming​ ​market runs through Roblox. And, approximately 30% of U.S. 13-17 year olds use the platform​ ​daily.​ ​Expanding the O18 Cohort.​​We are focused on replicating the success we have had in younger​ ​cohorts in the O18 demographic. This year, we have improved our engine to support higher fidelity​ ​content, increased the Developer Exchange (DevEx) rate to reward in-game monetization from O18​ ​4​

 
​U.S. users, scaled paid acquisition targeting O18 users, and optimized our discovery algorithm on a​ ​cohort by cohort basis—all to support O18 growth. In Q3, O18 users represented 29% of global​ ​age-checked DAUs and 37% of U.S. age-checked DAUs​​, up from 27% and 33% as of Q2’26,​2 ​respectively. O18 is our fastest-growing cohort on the platform. In the U.S., O18 users monetize​ ​50%+​ ​above U18 users; as we grow our O18 audience, we expect overall monetization will​3 ​improve.​ ​Q3 2026​ ​Year-Over-Year Growth %​ ​Year-Over-Two-Year Growth %​ ​DAUs​ ​Hours​ ​DAUs​ ​Hours​ ​U.S. Age 18-34 Users​​3​ ​26%​ ​23%​ ​114%​ ​126%​ ​U.S. O18 Users​​3​ ​18%​ ​13%​ ​89%​ ​95%​ ​Using Paid User Acquisition to Accelerate O18 Growth.​​This summer we ran over 200 user​ ​acquisition campaigns, with marketing spend targeting O18 users up nearly 3x compared to the​ ​same period a year ago. Paid user retention, engagement, and monetization of this cohort are​ ​outperforming organic signups. Early results are encouraging and we plan to continue investing in​ ​this strategy, while maintaining a high bar for return on investment.​ ​Expanding Global Penetration.​​We continue to see strong international growth. In Q3’26, DAUs​ ​grew 12% year-over-year in France and 13% in Germany. And in Japan, India, and Saudi Arabia,​ ​DAUs grew 33%, 37%, and 30% year-over-year, respectively. With less than 2% of people outside​ ​of the U.S. using Roblox daily, we see an opportunity to continue to gain share in international​ ​markets.​ ​Leading the Industry in Safety.​​For Roblox, safety is at the core of everything we do and a​ ​long-term strategic foundation. Our commitment to creating a safe, age-appropriate experience for​ ​all users is reflected by mandatory age-checks to enable communications, banded​ ​communications by user age cohorts, active filtering and text moderation, and restrictions on​ ​image sharing. Our safety architecture serves as an industry reference for innovation, and our​ ​dynamically configurable system enables productive dialogues in evolving regulatory​ ​environments across global markets, including Australia, Indonesia, and beyond. By the end of​ ​Q3’26, 64% of global DAUs had completed an age check, including more than 80% of DAUs aged​ ​3​ ​See “Special Note Regarding Age-Check” for additional details.​ ​2​ ​As of the seven days ended September 30, 2026, on a global basis, 34% of users who have age-checked​ ​are under 13, 37% are between the ages of 13 and 17, and 29% are O18.​ ​5​

 
​13 to 17. In key markets like Australia, the U.S. and the U.K., age-check penetration of total DAUs​ ​reached 80%, 75% and 75%, respectively.​​2​ ​Advancing Safe, Multi-Modal Communications.​​Safe, on-platform communication and​ ​coordination is central to how people connect and play on Roblox. In Q3’26, DAUs who sent a chat​ ​message or connected to voice grew 24% quarter-over-quarter, double our total platform DAU​ ​growth rate. Users sent an average 1.6 billion in-game chat messages per day, up 13%​ ​quarter-over-quarter, and Global Chat averaged nearly 30 million daily messages. We also​ ​launched voice typing and a Friends chat tab that enables players to continuously communicate​ ​with their friends as they move across games. In July, we launched Quick Words, which enables all​ ​users to seamlessly coordinate gameplay; in October, we enabled creators to customize preset,​ ​pre-reviewed Quick Words messages directly in their games.​ ​Leveraging Scaled Audience to Diversify Monetization.​​As we scale, we are building on our​ ​free-to-play foundation by giving players more ways to engage and creators more ways to earn.​ ​●​ ​Roblox Plus.​​We launched Roblox Plus in April and have already scaled to millions of active​ ​subscribers. Plus subscribers average 2x the playtime, spend 7x more Robux and show​ ​materially higher adoption of social features like private servers compared to non-Plus​ ​users. In September, we hosted The Hunt: Roblox 20, a platform-wide event celebrating our​ ​20th anniversary. Plus members received early access, exclusive avatar rewards, and​ ​special classic profile themes. We will continue to look for additional ways to enhance the​ ​Plus offering and make it essential for all Roblox players.​ ​●​ ​Advertising.​​Formats like Rewarded Video and Sponsored Tiles are demonstrating clear​ ​product-market fit. In Q3’26, more than 70% of our top 100 games ranked by Robux spent​ ​ran Sponsored Ads, and more than 20% of games using rewarded video generated over​ ​10% of their in-game earnings from advertising. Growing first-party inventory is critical to​ ​scaling our advertising business. With this in mind, we plan to launch skippable, pre-roll​ ​video ads to drive incremental monetization opportunities.​ ​6​

 
​2. Roblox is a UGC creation platform with advanced discovery that​ ​drives growth​ ​Discovery connects our 138 million DAUs to millions of games across our ecosystem. We continue​ ​to evolve our recommendation and search systems by incorporating player behavior signals, as​ ​well as greater social graph, cohort, and co-play signals to drive lifetime value of our users.​ ​Refining Home Page Recommendation Algorithm.​​In Q2’26, we began optimizing our​ ​Recommended for You (RFY) algorithm for long-term retention, knowing that players who stay​ ​longer and return more often help grow the Roblox ecosystem. In Q3’26, we further refined our​ ​recommendation algorithm by improving personalization to promote the type of content that those​ ​users most engage with, including by incorporating age-cohort data into our algorithm weighting.​ ​These optimizations drove meaningful improvements in overall platform retention and monetization​ ​in the quarter, which positively impacted bookings. Notably, year-over-year growth in bookings per​ ​Hour improved relative to last quarter​​.​ ​Surfacing New Content vs. AI Slop.​​The recent changes we have made to our recommendation​ ​and search algorithms have helped new games break into top concurrent player charts. We are​ ​seeing significant gains in how quickly new games surface on RFY, while improving retention and​ ​monetization. By the end of Q3, about 40% of the weekly RFY top 100 games ranked by​ ​impressions were created in the last three months. The volume of new content on Roblox is​ ​accelerating as AI continues to diffuse throughout the gaming industry. We see an opportunity to​ ​be the best in the world at identifying high-quality content and personalizing those​ ​recommendations to each user, building on our leading personalization for UGC gaming.​ ​Leveraging Moments for Discovery.​​With Moments, we are bringing off-platform viewing directly​ ​onto the Roblox App, where every video is just one tap away from active gameplay. Moments is​ ​live across most of the U.S. and we are continuing to expand its capabilities. For example, we​ ​recently enabled direct avatar item purchasing from videos, commenting functionality, and in the​ ​coming months, Build games will be playable directly from the Moments feed.​ ​7​

 
​3. Roblox has an unparalleled data set that supports hundreds of​ ​proprietary models for safety, discovery, and creation​ ​Roblox has a proprietary data set, including more than 20 years of gameplay data, hundreds of​ ​thousands of daily active creators, and an average of more than 350 million hours of human​ ​interaction data per day. We believe no other company can replicate these unique bodies of data:​ ​how games are built, how worlds and assets come together, which mechanics keep players​ ​engaged, and what maximizes player lifetime value. We have nearly 400 models that power​ ​creation, safety and social communication, discovery, economy and infrastructure. These models​ ​use a combination of open-weight and frontier models with self-hosted models handling 77% of​ ​requests. We use our unique data to fine-tune open weight models for the tasks that matter most​ ​to our creators, such as generating game logic, building worlds, creating assets, and incorporating​ ​player signals that allow them to build businesses.​ ​Creation.​​Our data on human gameplay and spend is a unique asset. By capturing gameplay as 4D​ ​spatial data down to the instance and frame level, our Data Model Recording (DMR) platform​ ​provides richer, more granular ground truth. Models trained on this data can learn precise 3D state​ ​changes over time from any perspective, learning complex behaviors directly from exact telemetry​ ​like line of sight, weapon usage, and hit locations. This rich data allows training models for​ ​human-like playtesters and NPCs, at higher quality and lower inference costs than frontier models.​ ​We are adding purpose-built models for 3D asset generation via diffusion, NPC models trained on​ ​our human gameplay data to playtest and give feedback to the coding agent, and scene​ ​verification models. We are also building art agents for UI, UX, and visual assets to avoid generic​ ​AI-generated output.​ ​Safety and Social Communication.​​We are also using AI models to detect violative content in real​ ​time. Earlier this year, we released RM3, our real-time multimodal moderation system, which​ ​proactively detects and addresses violative content. RM3 contextually evaluates entire scenes —​ ​including avatars, text, emotes, and 3D objects — dramatically reducing the time it takes for​ ​violative content to be detected and addressed. Our Bad Avatar Moderation (BAM) system scans​ ​assembled avatars to prevent individually compliant items from being combined into inappropriate​ ​outfits. We also expanded our safety systems to include an AI-powered chat filtering system,​ ​which uses an LLM-based model to rewrite certain messages in real time into age-appropriate​ ​versions.​ ​8​

 
​Discovery.​​Our discovery systems are trained on billions of daily signals: games users see, what​ ​they play, how long they stay, who they play with, and what they come back to. These systems​ ​help match each of our 138 million DAUs with the right game from a growing catalog, including new​ ​and niche titles that might otherwise go unseen. As AI brings more games onto Roblox, we believe​ ​our discovery systems will become even more important to connecting great content with its​ ​audience, and to the health of our creator ecosystem.​ ​Economy.​​Roblox’s fully integrated economy produces​​a rich, proprietary record of how value is​ ​created in games: when users buy items, how to price them, at what point in a play session to put​ ​them in front of a user, and how spending relates to long-term engagement. We are able to utilize​ ​these signals to improve our AI creation tools, letting agents learn not only how to help creators​ ​build a game, but also which design choices could lead to successful games.​ ​4. Roblox Universal Player will act as a platform to support creation​ ​loops, whether powered by import, Build or external AI via MCP​ ​We are continuously evolving our engine to support any kind of game, from high-fidelity,​ ​photorealistic multiplayer to 2D single-player, across both online and offline play. Expanding these​ ​capabilities to support games creators have built elsewhere represents a massive opportunity for​ ​Roblox, and serves as the driver behind The Universal Player and Roblox Everywhere, which will​ ​give us the ability to run any external game and deploy it seamlessly across any device. Our work​ ​on import and Universal Player also creates an iterative feedback loop, identifying technological​ ​gaps in our engine and allowing us to deploy AI-enabled engineering resources to close them.​ ​Expanding 3D Capabilities.​​We are advancing our terrain system and runtime technologies,​ ​including SLIM and dynamic mesh and texture streaming, to deliver complex 3D geometry and​ ​high-resolution textures across any device. These leaps in visual fidelity are powered by our hybrid​ ​cloud architecture, which couples on-premise data center capacity with public cloud bursting. This​ ​flexibility allows us to route each AI prompt and compute workload to the most efficient layer,​ ​optimizing both performance and cost across Build, Moments, and Roblox Reality.​ ​Roblox Reality: Photorealism at Scale.​​We are advancing Roblox Reality, which combines our​ ​cloud infrastructure and game engine with video world models to deliver photorealism across​ ​multiplayer games on any device. Powered by 20 years of gameplay data, we are uniquely​ ​positioned to bring generative world models to interactive, low-latency gaming. We plan to have​ ​Roblox Reality available in early access in the first half of 2027.​ ​9​

 
​Competitive Play​​. This quarter we shipped Server Authority, making it easier than ever for creators​ ​to build and operate competitive games with client prediction for low latency, and server-based​ ​simulation for fairness across clients.​ ​2D and Offline Play.​​We are broadening the 2D capabilities of our engine to expand creative​ ​possibilities on Roblox and support all types of play. By rolling out new features such as an​ ​orthographic camera and animated image containers, along with UI improvements, e.g. blur, text​ ​shadows, we are making 2D game creation easier than ever. Looking ahead, we plan to launch a​ ​notification system for turn-based games and enable offline play, allowing creators to offer​ ​disconnected solo games alongside live multiplayer modes.​ ​Play on the Web.​​We are also bringing games directly to web browsers. Starting with Google​ ​Chrome, with more to follow, players will be able to join a game instantly through a direct link, with​ ​no app installation required. A link shared via search, YouTube, X, or a direct message from a​ ​friend becomes a way to join a game and play. Web Play will be powered by a web assembly build​ ​of Roblox. By leveraging the same codebase, creators get this new platform with no additional​ ​work required, we have instant cross-play for Web Play users across all of the platforms and​ ​devices we support, and achieve full leverage of our vertical stack from creation to runtime scale​ ​and safety.​ ​5. Roblox Build and Studio Assistant are harnesses that can support​ ​iterative workflows and route prompts to a range of models.​ ​Roblox Build and Studio Assistant are AI harnesses that can support iterative workflows and route​ ​prompts to a range of models. They support seamless transitions between creation tools because​ ​we expect creators to use various combinations of creation surfaces depending on what they’re​ ​trying to accomplish. Gaming is incredibly complicated, requiring scripting, 3D assets, terrain,​ ​gameplay logic, and much more, and we know what it takes to get it right. By seamlessly bringing​ ​those insights to the creator, all running directly in Studio and Build, we believe we can accelerate​ ​creation.​ ​Supercharging Roblox Studio with AI.​​Building on the​​rapid adoption of our Studio AI tools,​ ​creators are seeing immediate, tangible benefits. Published game volume using AI grew more than​ ​50% quarter-over-quarter, and multiple games built almost entirely with our Studio MCP connector​ ​10​

 
​have broken into the top 20 ranked by concurrent users. In a survey of several thousand creators,​ ​97% of those regularly using AI said that it accelerated their development timelines.​ ​Democratizing Creation with Build.​​Our natural-language creation tool, Build, is proving that​ ​lowering technical friction unlocks an entirely new creator cohort: during our alpha release, over​ ​75% of Build users had never opened Roblox Studio. Creators can now build, publish, review​ ​analytics, and deploy monetization mechanics entirely from a mobile device—with numerous Build​ ​titles already running ads and monetizing. We plan to roll Build out more broadly later this year. A​ ​free base tier will remain available, with paid tier options for additional prompt capacity.​ ​Key Metrics and Financials: Q3 2026​ ​Users & Engagement.​​In Q3, DAUs were 138 million,​​down 9% year-over-year, and Hours reached​ ​nearly 34 billion, down 15% year-over-year, as we lapped difficult comparisons to the growth we​ ​experienced in 2025. On a two-year basis, underlying growth remained very strong, with DAUs and​ ​Hours up 55% and 63%, respectively. International growth outperformed the broader platform. In​ ​India, DAUs grew 37% and Hours grew 28% year-over-year, while in Japan, DAUs rose 33% and​ ​Hours increased 22% year-over-year.​ ​Monetization.​​Bookings per Hour grew approximately 4% year-over-year globally and 2%​ ​year-over-year in the U.S. and Canada, improving relative to year-over-year trends in Q2’26.​ ​Similar to Q2, monetization trends for younger U.S. cohorts remained challenged, due to difficult​ ​prior-year comparables, partially offset by realized improvements from updates to our RFY​ ​algorithm. Average monthly unique payers (MUPs) totaled 30 million, down 16% year-over-year,​ ​though, average bookings per MUP increased 5% year-over-year, demonstrating improvement in​ ​spending among active payers.​ ​11​

 
​Cost Components.​ ​As a % of Revenue​ ​As a % of Bookings​ ​Q3 2026​ ​Q3 2025​ ​bps​ ​Change​​(A)​ ​Q3 2026​ ​Q3 2025​ ​bps​ ​Change​​(A)​ ​Cost of Revenue​ ​20%​ ​22%​ ​(160)​ ​NM​​(B)​ ​NM​​(B)​ ​NM​​(B)​ ​Developer Exchange Fees​ ​26%​ ​31%​ ​(580)​ ​24%​ ​22%​ ​140​ ​Certain Infrastructure and Trust & Safety​ ​Expense​​(C)​ ​16%​ ​15%​ ​110​ ​15%​ ​11%​ ​440​ ​Personnel Costs excl. Stock-Based​ ​Compensation Expense​ ​18%​ ​18%​ ​(50)​ ​17%​ ​13%​ ​360​ ​(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 Q3​ ​2026 and Q3 2025.​ ​(C)​ ​Infrastructure and Trust & Safety expenses, excluding personnel, stock-based compensation, and depreciation​ ​and amortization expenses.​ ​●​ ​Cost of revenue grew 7% year-over-year, totaling $318 million. In Q3’26, the share of​ ​bookings from lower-cost platforms continued to grow relative to the year-ago period,​ ​resulting in lower payment processing fees in the current period as a percentage of​ ​bookings.​ ​●​ ​Developer Exchange (DevEx) fees declined 6% year-over-year, totaling $403 million. As a​ ​reminder, the growth in DevEx fees as a percentage of bookings reflects the increase to​ ​creator earnings we announced on September 5, 2025 and the targeted O18 DevEx rate​ ​increase that went into effect on June 8, 2026.​ ​●​ ​Certain Infrastructure and Trust & Safety expenses grew 24% year-over-year, totaling $258​ ​million. The increase was driven by AI-related investments to support growth initiatives,​ ​including AI training and inference costs.​ ​●​ ​Personnel costs excluding stock-based compensation expenses grew 12% year-over-year,​ ​totaling $281 million, driven by an increase in headcount compared to the year ago period.​ ​Consolidated net loss & Adjusted EBITDA.​​Consolidated net loss was $230 million, compared to​ ​$258 million in Q3 2025. Adjusted EBITDA was $138 million, compared to $46 million in Q3 2025.​ ​Adjusted EBITDA excludes adjustments for change in deferred revenue and change in deferred​ ​cost of revenue. Total change in net deferrals was $136 million in Q3’26, driven entirely by the​ ​change in deferred revenue, compared to a total change in net deferrals of $458 million in Q3​ ​2025.​ ​12​

 
​Cash Flow.​​In Q3’26, operating cash flow was $395 million compared to $546 million in the​ ​prior-year period, while free cash flow totaled $364 million compared to $443 million in Q3 2025.​ ​In addition, free cash flow reflected lower than expected capital expenditures in the quarter, as a​ ​significant portion of spending shifted from Q3 into Q4. Total cash, cash equivalents, and​ ​investments was $6.2 billion as of September 30, 2026, a year-over-year increase of $1.0 billion.​ ​Share Repurchase Program.​​In Q3’26, we repurchased 4.4 million shares for approximately $200​ ​million and as of September 30, 2026, have approximately $2.4 billion of repurchase authorization​ ​remaining under the current program. As a reminder, this program is designed to partially offset​ ​dilution from employee equity grants while preserving strategic optionality to invest in future​ ​growth opportunities.​ ​Share Count.​​Our fully diluted share count was 755 million shares as of September 30, 2026, a​ ​year-over-year increase of 2%.​ ​GAAP Accounting & Profitability.​​For GAAP accounting, the vast majority of the Q3 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 Q3’26. Meanwhile, our other operating costs, which include DevEx fees, personnel costs,​ ​and certain infrastructure and trust & safety expenses, are recognized during the period.​ ​13​

 
​Guidance​ ​For Q4’26, we expect revenue growth to be in the range of 4% to 12% year-over-year, and​ ​bookings to decline 10% to 15% year-over-year​ ​. Our bookings guidance assumes a seasonal​4 ​decline in DAUs between Q3 and Q4 similar to what we’ve observed in recent years. We are also​ ​applying a slightly wider range to our guidance in Q4 given the significant proportion of bookings​ ​that are typically generated in the last week of December.​ ​Given our expectations for Q4 bookings, we expect fixed cost deleveraging relative to the year-ago​ ​period. Additionally, we continue to make incremental investments to fuel key initiatives across our​ ​core Roblox App, the Universal Player, and Roblox Everywhere that we believe will drive long-term​ ​growth and margin expansion.​ ​In Q4’26, we expect operating cash flow to be in the range of $190 million to $275 million and free​ ​cash flow to be in the range of $(190) million to $(105) million, which includes the capital​ ​expenditures timing shift from Q3’26 to Q4’26​ ​Guidance​ ​Q4 2026​ ​($ in millions)​ ​Low​ ​High​ ​Revenue​​(A)​ ​$ 1,470​ ​$ 1,580​ ​YoY %​ ​4%​ ​12%​ ​Bookings​​(A)​ ​$ 1,890​ ​$ 2,000​ ​YoY %​ ​(15)%​ ​(10)%​ ​Consolidated net loss​​(B)​ ​$ (423)​ ​$ (363)​ ​Adjusted EBITDA​ ​$ (70)​ ​$ (10)​ ​Total net increase in deferred revenue and deferred cost of revenue​ ​$ 390​ ​$ 390​ ​Net cash and cash equivalents provided by operating activities​ ​$ 190​ ​$ 275​ ​Capital expenditures and purchases of intangible assets​ ​$ (380)​ ​$ (380)​ ​Free cash flow​​(A)​ ​$ (190)​ ​$ (105)​ ​YoY %​ ​NM​ ​NM​ ​(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 October 29, 2026.​ ​4​ ​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, Q4’26 revenue includes flow-through from prior period bookings, particularly elevated bookings​ ​throughout 2025.​ ​14​

 
​Roblox Corporation​​Financial Statements​ ​ROBLOX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS​ ​Unaudited ($ in millions)​ ​As of​ ​September 30, 2026​ ​December 31, 2025​ ​Assets​ ​Current assets:​ ​Cash and cash equivalents​ ​$ 1,093​ ​$ 1,205​ ​Short-term investments​ ​2,103​ ​1,850​ ​Accounts receivable—net of allowances​ ​497​ ​901​ ​Prepaid expenses and other current assets​ ​143​ ​109​ ​Deferred cost of revenue, current portion​ ​901​ ​833​ ​Total current assets​ ​4,737​ ​4,898​ ​Long-term investments​ ​3,042​ ​2,493​ ​Property and equipment—net​ ​891​ ​885​ ​Operating lease right-of-use assets​ ​764​ ​651​ ​Deferred cost of revenue, long-term​ ​403​ ​448​ ​Intangible assets, net​ ​22​ ​18​ ​Goodwill​ ​163​ ​143​ ​Other assets​ ​23​ ​21​ ​Total assets​ ​$ 10,045​ ​$ 9,557​ ​Liabilities and Stockholders’ equity/(deficit)​ ​Current liabilities:​ ​Accounts payable​ ​$ 37​ ​$ 65​ ​Accrued expenses and other current liabilities​ ​683​ ​396​ ​Developer exchange liability​ ​444​ ​496​ ​Deferred revenue—current portion​ ​4,781​ ​4,169​ ​Total current liabilities​ ​5,945​ ​5,126​ ​Deferred revenue—net of current portion​ ​2,259​ ​2,337​ ​Operating lease liabilities​ ​739​ ​643​ ​Long-term debt, net​ ​1,009​ ​993​ ​Other long-term liabilities​ ​120​ ​83​ ​Total liabilities​ ​10,072​ ​9,182​ ​Stockholders' equity/(deficit)​ ​Common stock​ ​—*​ ​—*​ ​Additional paid-in capital​ ​5,770​ ​5,438​ ​Accumulated other comprehensive income/(loss)​ ​(54)​ ​17​ ​Accumulated deficit​ ​(5,717)​ ​(5,061)​ ​Total Roblox Corporation stockholders' equity/(deficit)​ ​(1)​ ​394​ ​Noncontrolling interest​ ​(26)​ ​(19)​ ​Total stockholders' equity/(deficit)​ ​(27)​ ​375​ ​Total liabilities and stockholders' equity/(deficit)​ ​$ 10,045​ ​$ 9,557​ ​* Amounts round to zero.​ ​15​

 
​ROBLOX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS​ ​Unaudited ($ in millions, except number of shares which are reflected in thousands, and per share amounts)​ ​Three Months Ended​ ​September 30,​ ​Nine Months Ended​ ​September 30,​ ​2026​ ​2025​ ​2026​ ​2025​ ​Revenue​ ​$1,572​ ​$1,360​ ​$4,483​ ​$3,476​ ​Costs and expenses:​ ​Cost of revenue​​(1)​ ​318​ ​296​ ​904​ ​757​ ​Developer exchange fees​ ​403​ ​428​ ​1,189​ ​1,026​ ​Infrastructure and trust & safety​ ​385​ ​321​ ​1,072​ ​824​ ​Research and development​ ​435​ ​399​ ​1,277​ ​1,158​ ​General and administrative​ ​203​ ​145​ ​611​ ​416​ ​Sales and marketing​ ​111​ ​67​ ​236​ ​168​ ​Total cost and expenses​ ​1,855​ ​1,656​ ​5,289​ ​4,349​ ​Loss from operations​ ​(283)​ ​(296)​ ​(806)​ ​(873)​ ​Interest income​ ​60​ ​52​ ​174​ ​147​ ​Interest expense​ ​(11)​ ​(10)​ ​(31)​ ​(31)​ ​Other income/(expense), net​ ​5​ ​(3)​ ​4​ ​6​ ​Loss before income taxes​ ​(229)​ ​(257)​ ​(659)​ ​(751)​ ​Provision for/(benefit from) income taxes​ ​1​ ​1​ ​4​ ​3​ ​Consolidated net loss​ ​(230)​ ​(258)​ ​(663)​ ​(754)​ ​Net loss attributable to the noncontrolling interest​ ​(3)​ ​(2)​ ​(7)​ ​(5)​ ​Net loss attributable to common stockholders​ ​$ (227)​ ​$ (256)​ ​$ (656)​ ​$ (749)​ ​Net loss per share attributable to common​ ​stockholders, basic and diluted​ ​$ (0.32)​ ​$ (0.37)​ ​$ (0.92)​ ​$ (1.09)​ ​Weighted-average shares used in computing net loss​ ​per share attributable to common​ ​stockholders—basic and diluted​ ​715,936​ ​697,282​ ​714,815​ ​684,702​ ​(1)​ ​Depreciation of servers and infrastructure equipment included in infrastructure and trust & safety.​ ​16​

 
​ROBLOX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS​ ​Unaudited ($ in millions)​ ​Three Months Ended​ ​September 30,​ ​Nine Months Ended​ ​September 30,​ ​2026​ ​2025​ ​2026​ ​2025​ ​Cash flows from operating activities:​ ​Consolidated net loss​ ​$(230)​ ​$(258)​ ​$(663)​ ​$(754)​ ​Adjustments to reconcile consolidated net loss to net cash​ ​and cash equivalents provided by operating activities:​ ​Depreciation and amortization expense​ ​67​ ​55​ ​193​ ​163​ ​Stock-based compensation expense​ ​298​ ​287​ ​855​ ​831​ ​Operating lease non-cash expense​ ​36​ ​28​ ​102​ ​88​ ​Accretion on marketable securities, net​ ​(10)​ ​(16)​ ​(33)​ ​(50)​ ​Other adjustments​ ​(4)​ ​(2)​ ​(15)​ ​3​ ​Changes in operating assets and liabilities, net of​ ​effect of acquisitions:​ ​Accounts receivable​ ​3​ ​(109)​ ​410​ ​(22)​ ​Prepaid expenses and other current assets​ ​(4)​ ​3​ ​(38)​ ​(21)​ ​Deferred cost of revenue​ ​1​ ​(115)​ ​(23)​ ​(208)​ ​Other assets​ ​1​ ​1​ ​—​ ​(6)​ ​Accounts payable​ ​9​ ​8​ ​(23)​ ​20​ ​Accrued expenses and other current liabilities​ ​102​ ​29​ ​170​ ​37​ ​Developer exchange liability​ ​23​ ​78​ ​(52)​ ​53​ ​Deferred revenue​ ​132​ ​574​ ​533​ ​1,112​ ​Operating lease liabilities​ ​(37)​ ​(31)​ ​(109)​ ​(84)​ ​Other long-term liabilities​ ​8​ ​14​ ​35​ ​27​ ​Net cash and cash equivalents provided​ ​by operating activities​ ​395​ ​546​ ​1,342​ ​1,189​ ​Cash flows from investing activities:​ ​Acquisition of property and equipment​ ​(28)​ ​(103)​ ​(83)​ ​(143)​ ​Purchases of intangible assets​ ​(3)​ ​(1)​ ​(5)​ ​(1)​ ​Payments related to business combinations, net of cash​ ​acquired​ ​—​ ​—​ ​(6)​ ​—​ ​Purchases of investments​ ​(904)​ ​(1,461)​ ​(3,887)​ ​(4,072)​ ​Maturities of investments​ ​532​ ​860​ ​2,181​ ​2,669​ ​Sales of investments​ ​296​ ​162​ ​873​ ​574​ ​Other investing activities​ ​1​ ​—​ ​4​ ​—​ ​Net cash and cash equivalents used in​ ​investing activities​ ​(106)​ ​(543)​ ​(923)​ ​(973)​ ​Cash flows from financing activities:​ ​Proceeds from issuance of common stock​ ​11​ ​21​ ​45​ ​85​ ​Repurchases of common stock​ ​(201)​ ​—​ ​(576)​ ​—​ ​Net cash and cash equivalents provided​ ​by (used in) financing activities​ ​(190)​ ​21​ ​(531)​ ​85​ ​Effect of exchange rate changes on cash and cash​ ​equivalents​ ​3​ ​(2)​ ​—​ ​4​ ​Net increase/(decrease) in cash and cash equivalents​ ​102​ ​22​ ​(112)​ ​305​ ​Cash and cash equivalents​ ​Beginning of period​ ​991​ ​995​ ​1,205​ ​712​ ​End of period​ ​$1,093​ ​$1,017​ ​$1,093​ ​$1,017​ ​17​

 
​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, October 29, 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 users worldwide 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, our​ ​efforts to expand our O18 cohort,​​our efforts regarding​​AI-powered initiatives, including Build,​ ​Studio Assistant, Roblox Reality, and other AI tools for creators, our efforts related to growing our​ ​global audience and broadening our content offering, including through Roblox Everywhere and​ ​Universal Player, 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 and business initiatives,​​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 fourth 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​ ​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​ ​18​

 
​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.​ ​19​

 
​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.​ ​20​

 
​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.​ ​21​

 
​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 September 30,​ ​Nine Months Ended September 30,​ ​Reconciliation of revenue to bookings:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Revenue​ ​$1,572​ ​$1,360​ ​$4,483​ ​$3,476​ ​Add (deduct):​ ​Change in deferred revenue​ ​136​ ​573​ ​534​ ​1,116​ ​Other​ ​(11)​ ​(11)​ ​(32)​ ​(25)​ ​Bookings​ ​$1,697​ ​$1,922​ ​$4,985​ ​$4,567​ ​The following table presents a reconciliation of consolidated net loss, the most directly comparable​ ​financial measure calculated in accordance with GAAP, to Adjusted EBITDA, for each of the​ ​periods presented (in millions, unaudited):​ ​Three Months Ended September 30,​ ​Nine Months Ended September 30,​ ​Reconciliation of consolidated net loss​ ​to Adjusted EBITDA:​ ​2026​ ​2025​ ​2026​ ​2025​ ​Consolidated net loss​ ​$(230)​ ​$(258)​ ​$(663)​ ​$(754)​ ​Add (deduct):​ ​Interest income​ ​(60)​ ​(52)​ ​(174)​ ​(147)​ ​Interest expense​ ​11​ ​10​ ​31​ ​31​ ​Other (income)/expense, net​ ​(5)​ ​3​ ​(4)​ ​(6)​ ​Provision for/(benefit from) income​ ​taxes​ ​1​ ​1​ ​4​ ​3​ ​Depreciation and amortization​ ​67​ ​55​ ​193​ ​163​ ​Stock-based compensation expense​ ​298​ ​287​ ​855​ ​831​ ​Legal settlement expenses​​(A)​ ​49​ ​—​ ​140​ ​—​ ​Other charges​ ​7​ ​—​ ​7​ ​2​ ​Adjusted EBITDA​ ​$138​ ​$46​ ​$389​ ​$122​ ​(A)​ ​Includes legal expenses related to settlements and settlement negotiations with certain states and territories​ ​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.​ ​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, for each of the periods presented (in millions, unaudited):​ ​Three Months Ended September 30,​ ​Nine Months Ended September 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​ ​$395​ ​$546​ ​$1,342​ ​$1,189​ ​Add (deduct):​ ​Acquisition of property and​ ​equipment​ ​(28)​ ​(103)​ ​(83)​ ​(143)​ ​Purchases of intangible assets​ ​(3)​ ​(1)​ ​(5)​ ​(1)​ ​Free cash flow​ ​$364​ ​$443​ ​$1,254​ ​$1,046​ ​23​

 
​Forward Looking Guidance​ ​: GAAP to​5 ​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​ ​December 31, 2026​ ​Reconciliation of revenue to bookings:​ ​Low​ ​High​ ​Revenue​ ​$ 1,470​ ​$ 1,580​ ​Add (deduct):​ ​Change in deferred revenue​ ​430​ ​430​ ​Other​ ​(10)​ ​(10)​ ​Bookings​ ​$ 1,890​ ​$ 2,000​ ​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​ ​December 31, 2026​ ​Reconciliation of consolidated net loss to Adjusted EBITDA:​ ​Low​ ​High​ ​Consolidated net loss​​(A)​ ​$ (423)​ ​$ (363)​ ​Add (deduct):​ ​Interest income​ ​(50)​ ​(50)​ ​Interest expense​ ​11​ ​11​ ​Provision for/(benefit from) income taxes​ ​2​ ​2​ ​Depreciation and amortization​ ​85​ ​85​ ​Stock-based compensation expense​ ​305​ ​305​ ​Adjusted EBITDA​ ​$ (70)​ ​$ (10)​ ​(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 October 29, 2026.​ ​5​ ​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.​ ​24​

 
​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​ ​December 31, 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​ ​$ 190​ ​$ 275​ ​Add (deduct):​ ​Acquisition of property and equipment​ ​(380)​ ​(380)​ ​Free cash flow​ ​$ (190)​ ​$ (105)​ ​25​