Roblox stock craters 27% after Q2 earnings show daily active users down to 123 million

Roblox just posted its Q2 financial results, and they're rough. Daily active users dropped to 123 million from 152 million — the third consecutive quarter of declining player numbers — and the company's stock fell nearly 27% following the announcement on July 31.

Player engagement and spending were both down, and Roblox declined to give full-year earnings guidance, instead warning investors to expect a similarly weak Q3. The company pointed to two main culprits: a lack of viral games created during the quarter, and a shift in player behavior toward experiences with fewer microtransactions. Monthly unique players also fell, dropping to 27 million from 37 million two quarters prior. The stock is now sitting around $36, down roughly 70% from its peak of over $125 a year ago — a collapse that has wiped billions off the company's valuation.

Roblox built its business model on relentless growth, and that model is visibly straining. The platform has also spent the past few years under mounting pressure over child safety — its user base skews young, and the company has faced repeated criticism over how it handles predatory behavior and data privacy. Attempts to address this, including facial recognition-based age verification, have generated their own controversies. CEO David Baszucki made headlines earlier in 2025 for describing the predator problem as an "opportunity" in a New York Times interview, which went over about as well as you'd expect.

With no guidance offered for the rest of the year and a third straight quarter of user decline, Roblox is in a difficult spot. Whether the platform can reverse the trend — or whether this is a structural shift in how its audience engages — is the question investors and developers on the platform are now asking.