Roblox shares drop 19% after Q1 revenue miss and lowered 2026 outlook

Roblox reported Q1 revenue between $1.40 billion and $1.44 billion, missing the $1.74 billion consensus, with bookings slightly below expectations and daily active users falling short of forecasts. Despite a 35% year-over-year increase in daily users and 43% growth in engagement hours, the company faced headwinds from a Russia platform ban and age-check rollout, impacting user growth and communication features. Roblox lowered its full-year 2026 revenue growth forecast to 20-25% and bookings growth to 8-12%, also revising down profitability and cash flow expectations. The company expects continued challenges in Q2 with a sequential decline in daily users but anticipates positive cash flow and moderate revenue growth.