roblox Shares fell 15% on Thursday as the company said it expected an increase in capital spending that could weigh on profits.
The gaming company said it expects capital expenditures to be $468 million, an increase of $158 million from previous guidance.
“Our operating margin may decline slightly year-over-year due to higher DevEx rates and the impact of infrastructure and safety-related investments catching up with rapid booking growth in the second half of 2025,” the company said in a letter to shareholders.
The company’s Developer Exchange Program (DevEx) allows creators to exchange Robux for real money.
Comments on the gaming company’s margins and expenses overshadowed a strong third-quarter report.
Roblox’s third-quarter revenue increased 48% year over year to $1.36 billion, with reservations up 70% to $1.92 billion, exceeding LSEG’s forecast of $1.65 billion.
The company posted a loss of 37 cents per share, which was higher than analysts’ expectations of a loss of 49 cents per share.
“Our third quarter results demonstrate that we have made significant progress toward our goal of capturing 10% of the global gaming market,” CEO David Baszucki said in a release.
Roblox has raised its fiscal year booking outlook to $6.57 billion to $6.62 billion, up from its previous forecast of $5.87 billion to $5.97 billion last quarter.
Average daily users were 151.5 million, up 70% year-over-year, but average booking value per DAU was $12.68, below StreetAccount’s estimate of $13.24.
Growing parental concerns about online games and platforms, as well as inquiries from lawmakers, have led to a flurry of child safety regulations in the technology sector, putting pressure on artificial intelligence companies to do more.
Roblox is facing multiple lawsuits alleging that the platform allows predators to sexually exploit and abuse underage victims.
Baszucki told CNBC’s “Squawk on the Streets” on Thursday that safety is the company’s “top priority” and that it already has several security measures in place to protect minors on its platform.
“On Roblox, there is no image sharing and all text is filtered, and it underscores our commitment to truly innovate in this space,” Baszucki said.
In July, Roblox introduced age verification software that uses facial scans to estimate a user’s age and categorize them into the appropriate age group: under 13, over 13, and over 18. This gives users 13 and older access to Trusted Connections, a new communication feature that allows users to chat more freely.
The company also announced Wednesday that it is joining the Attorney General’s Alliance to launch a new child safety initiative called the Youth Online Safety Partnership. The initiative aims to design technology and establish best practices to stop online child exploitation.
Roblox stock price chart from the beginning of the year to today.
