Roblox Corp (RBLX.N): RoMonitor Week 28 Update: 3Q26 CCUs Are Sequentially Better

Research evidence excerpt

Roblox Corp (RBLX.N): RoMonitor Week 28 Update: 3Q26 CCUs Are Sequentially Better

Roblox Corp (RBLX.N)

13 July 2026 Citi Research

Roblox Corp

Company description

Roblox operates a two-sided gaming platform. On one side of the

marketplace, developers create content that can be purchased by users. On

the other side of the marketplace, consumers can purchase Roblox content to

enhance their experience within games. Consumers purchase Robux—the

platform's currency—for about $0.01 each. Developers can exchange Robux

for US dollars at $0.0035. This spread allows Roblox to generate profits. The

company currently has about 85 million daily active users (DAUs) on the

platform.

Investment strategy

We rate Roblox a Buy. Our bullish stance is based on three observations. First,

consensus estimates look reasonable to us. Second, Roblox has a number of

platform enhancements that are currently in beta, and has delivered on many

of its previous platform developments. Third, we also see room for upside in

the form of advertising and merchandising, which Roblox is currently

developing.

Valuation

Our target price is $70 a share. To arrive at this target price, we value the

company at ~32x, our 2027 FCF per share estimate, plus $9 of net cash per

share.

Risks

This stock is High Risk based upon our quantitative model, but assigning a

High Risk rating is not supported by three observations. First, Roblox

generates FCF. Second, we find the company’s capital structure quite

conservative. Third, we believe Roblox adoption is apt to expand as the

platform is enhanced with new tools and capabilities. Thus, a High Risk rating

has not been applied.

We see three main risks to achieving our target price. First, the gaming

industry is competitive. If consumers begin to shift their time to other games