Roblox (RBLX +5.49%) has quietly become one of the most talked-about stocks of 2025. After a volatile few years, the gaming platform is back in the spotlight -- not just for its popularity among players, but for the renewed confidence from investors.
The latest results show a business that's scaling rapidly, experimenting with new monetization models, and evolving into more than just a gaming platform. But as with most high-growth stories, the excitement comes with caveats.
Here's why Roblox has everyone talking -- and what it means for long-term investors.
Image source: Getty Images.
Growth momentum is picking up
Roblox's growth engine has reignited. In the most recent quarter, the company reported $1.4 billion in revenue, up 48% year over year, driven by solid growth in bookings, which surged 70%. It also raised its full-year bookings forecast to 50-51%. Those numbers stand out for a tech company that faced questions about the viability of its business model a few years ago.
The company's solid performance was a result of broad-based improvement in its operational metrics. For instance, daily active users (DAU) increased by 70% year over year to 151.5 million, with engagement hours reaching 39.6 billion, a 91% rise from the previous year. Roblox's scale now puts it in the league of some of the largest social media platforms -- a reminder that its reach extends well beyond gaming.
For investors, that momentum matters. It suggests that Roblox is not only holding onto its pandemic-era user base but is also expanding into new age groups and regions. For instance, users aged 13 and older grew by 89% year over year. Growth is rarely linear, but Roblox's recent acceleration hints at a business finding its second wind.
NYSE: RBLX
Key Data Points
Roblox's monetization story is evolving
Roblox has demonstrated that it has no problem adding new users. However, the next chapter is all about monetization -- and this is where the story gets interesting. For years, nearly all of its revenue came from Robux, the in-game currency users spend on virtual items. That remains the case, but Roblox has started to monetize users beyond its core markets.
For instance, the gaming company expanded its regional pricing strategy to include both Game Passes and Marketplace items. This launch helped increase payer penetration, particularly in countries like Indonesia, due to lower revenue-optimizing price points.
In April, the company partnered with Google Ad Manager to help advertisers measure performance and buy ad inventory more efficiently. The logic is simple: If Roblox can monetize attention through ads -- just like YouTube, Facebook, or TikTok -- it could unlock an entirely new profit engine.
So far, there are encouraging signs. For instance, 18,000 creators utilized traffic-driving ads in Q3, up 27% from Q2, and over 30 of Roblox's top 100 creators by engagement are using Ads Manager to expand their audience.
In other words, Roblox is working hard to ensure that it can better monetize its ever-growing user base while maintaining a high level of engagement. To this end, execution will be key. Roblox must strike the right balance between user experience and commercial integration. Too much advertising risks alienating players, while too little limits the upside.
For now, investors are closely monitoring early adoption and revenue trends.
A stock that divides opinion
The final reason Roblox is everywhere: it's polarizing. The stock has more than doubled in 2025 and now trades at 19 times sales -- a multiple that assumes near-flawless execution. Yet Roblox remains unprofitable, with costs for infrastructure, developer payouts, and safety investments continuing to weigh on margins.
This contrast -- strong growth but steep losses -- has split the investor base. Bulls see a platform with massive engagement, multiple monetization levers, and long-term optionality. Bears view the company as overpriced in relation to its fundamentals. Both sides have a point, which is precisely why Roblox continues to dominate the conversation.
Every quarter has become a test of faith. Can Roblox continue to grow at a rapid pace while also improving its efficiency? So far, the company is moving in the right direction, but the bar for perfection continues to rise.
What does it mean for investors?
The renewed attention on Roblox is not misplaced. The company is executing well, expanding its revenue base, and proving that its audience is both loyal and growing. But the real test will come when engagement, monetization, and operating leverage all align to deliver profitability.
Until that happens, Roblox remains a company in transition -- from a beloved platform to a potentially profitable one. For patient investors, that transition could be rewarding. For others, the volatility may be too steep. Either way, Roblox's evolution is worth watching closely.
