Roblox Stock (RBLX) Rallying on Blowout Q4 Earnings and Strong Guidance

Roblox stock price (NYSE:RBLX) has jumped 12.27% to $68 in pre-market trading, after the gaming platform delivered fourth-quarter results that significantly exceeded Wall Street expectations and issued optimistic guidance for fiscal year 2026.

The rally marks a sharp reversal from recent weakness that had seen the stock decline 18% over the previous week days from levels around $75, and 54.85% over the past 6 months. The shift in sentiment this morning will be more than welcome for RBLX bulls.

The company reported Q4 revenue of $2.22 billion, beating consensus estimates of $2.09 billion, while posting an adjusted loss per share of $0.45, slightly narrower than the anticipated $0.46 loss. More impressively, Roblox disclosed that daily active users surged 69% year-over-year to 144 million, with total engagement hours climbing 88% to 35 billion hours during the quarter.

The user growth figures underscore a significant acceleration in Roblox's platform adoption, particularly in international markets. DAUs outside the United States and Canada expanded 79% year-over-year, demonstrating the company's success in diversifying its geographic footprint beyond its core North American base, where DAUs still grew a robust 32%. The combination of expanding user counts and increasing content variety drove engagement hours to record levels, with the Asia-Pacific region leading growth while the U.S. and Canada contributed solid 41% hours growth.

Looking ahead, Roblox provided fiscal year 2026 bookings guidance of $8.28 billion to $8.55 billion, comfortably above the consensus estimate of $8.06 billion. The company also projected first-quarter revenue between $1.69 billion and $1.74 billion, broadly in line with analyst expectations of $1.71 billion. The upbeat guidance reflects management's confidence in sustained monetization improvements and continued platform expansion.

The quarterly results demonstrate Roblox's ability to scale its user base while maintaining strong engagement metrics, a critical combination for validating its long-term revenue potential.

The 88% surge in hours engaged suggests users are finding increasing value in the platform's expanding content library, which now spans gaming, social experiences, and virtual events. Geographic diversification also reduces reliance on mature markets and positions the company to capitalize on faster-growing regions with improving internet infrastructure.

However, the company remains unprofitable on a GAAP basis, with the Q4 loss highlighting ongoing investments in infrastructure, safety features, and developer tools. Roblox's beta of 1.78 signals elevated volatility relative to broader markets, and the stock's recent pullback from higher levels indicates lingering investor concerns about valuation multiples in a higher-rate environment.

Maintaining this momentum in upcoming quarters will be critical in shaping how the stock fares throughout the remainder of the year, but either way, this morning's bounce will be welcome for Roblox holders.