Roblox plunges after slashing annual bookings forecast

Roblox

01/05/2026 09:37

** Roblox Corp RBLX.N shares plunge 21.8% to $43.19 in pre-market trading after videogame platform cut its annual bookings forecast, signaling new safety features are impacting user growth

** Co now expects fiscal 2026 bookings of $7.33 bln to $7.6 bln, lower than earlier forecast of $8.28 bln to $8.55 bln, citing less user engagement after rolling out new safety features

** RBLX also projects Q2 bookings of $1.55 bln to $1.61 bln, below estimates of $1.83 bln per LSEG, and expects a sequential decline in daily active users in the current qtr

** "The magnitude of the guide cut suggests limited visibility, which makes it hard for us to gain confidence that the forecast is conservative" analysts at Jefferies say

** Co says new age-gating features for communications have led to less engagement on the platform, which can impact content virality and app store ratings

** Stock has plunged ~31.8% YTD, compared with 5.3% rise in S&P 500 .SPX

 (Reporting by Rashika Singh in Bengaluru)

 ((Rashika.Singh@thomsonreuters.com;))