Shares of Roblox (RBLX 2.07%) have soared to a three-year high following a series of better-than-expected quarterly results. In the last reported first quarter, the social-gaming giant posted a 31% year-over-year increase in bookings for the period ended March 31 amid strong engagement from a record 97.8 million daily active users.
With the stock price up 79% year to date, as of this writing, some investors might assume it's too late to buy Roblox. However, this assumption overlooks the bigger picture, as several tailwinds position the company to continue rewarding shareholders.
Here's why there's still time to add shares of Roblox to your portfolio.
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Roblox is on a path to consistent profitability
What sets Roblox apart from traditional video gaming companies like Electronic Arts or Take-Two Interactive is its unique business model. Rather than developing blockbuster titles, Roblox empowers millions of creators to build and monetize their own experiences within the ecosystem.
This user-generated content strategy has proven highly successful in attracting a diverse and growing user base but also represents a significant cost, given the revenue-sharing approach, which limits the company's profitability. Yet it now appears that Roblox's expanding scale is pushing its improving financials in the right direction.
First-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $58 million reversed the $7 million loss in the prior-year quarter. For all of 2025, the company is targeting adjusted EBITDA between $205 million and $265 million, sharply higher than the $180 million result last year.
The rally in Roblox stock can keep going
Roblox's global expansion, with approximately 37% of daily active users now from regions outside North America, continues to drive significant growth. There has been a positive response to new artificial intelligence (AI) tools, elevating platform engagement and efficiency. Furthermore, strategic advertising partnerships with major brands for in-game collaborations are unlocking new revenue streams.
As long as the Roblox ecosystem remains vibrant with gamers and its creators, there's a clear path for profitable growth, which should keep the company's stock humming.
