Roblox reports strong Q1 growth, driven by AI integration and expects continued revenue and cash flow gains.

Roblox posted a 39% revenue increase to $1.44 billion in Q1, alongside 43% growth in bookings and 71% growth in adjusted EBITDA, highlighting its accelerating scale and user engagement. The company is leveraging artificial intelligence across its platform to boost productivity, empower creators, and enhance user discovery, which is expected to drive 5-8% annual growth above baseline and substantial long-term free cash flow. Analysts rate Roblox as a strong buy with a target price of $109 per share in three years, supported by its robust growth, low debt, and favorable valuation compared to peers. This positions Roblox as not just a gaming platform but an AI-native entertainment ecosystem with significant growth potential.