Roblox Stock Drops 72% Year-Over-Year Despite 40% Free Cash Flow Growth

Wall Street maintains an average price target of $51.32 for RBLX despite a 72% share price decline and withdrawn FY2026 guidance. Roblox shares trade at $37, down 72% from a year ago, even as free cash flow rose 40% to $596 million. The company withdrew all FY2026 guidance

Wall Street maintains an average price target of $51.32 for RBLX despite a 72% share price decline and withdrawn FY2026 guidance.

Roblox shares trade at $37, down 72% from a year ago, even as free cash flow rose 40% to $596 million. The company withdrew all FY2026 guidance due to age-verification rollout challenges, which slowed user sign-ups and communication for unverified users.

Despite the selloff, Q4 2025 bookings surged 63% to $2.22 billion, while daily active users (DAUs) grew 69% to 144 million. Over-18 users, monetizing 40% above the platform average, expanded by more than 50%. Wall Street’s average price target of $51.32 suggests potential upside.

The stock’s decline follows a monetization warning tied to mandatory age checks, though underlying engagement metrics remain strong. Analyst sentiment remains mixed, with bulls pointing to long-term growth potential.

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