Roblox jumps after announcing $3 billion share buyback plan
Roblox rallied in postmarket trading on Tuesday after unveiling its first-ever share repurchase program.
The somewhat controversial, but certainly popular, gaming company has put forth a plan for $3 billion in future stock buybacks, with the intention to back up to $1 billion over the next 12 months. The stock subsequently jumped 4% after-hours.
On Tuesday, Naveen Chopra, chief financial officer of Roblox, said:
“Investing in continued growth will always be our highest priority, but the strength of our balance sheet and free cash flow generation allows us to support industry leading innovation while simultaneously reducing dilution.”
As of Q1 2026, Roblox had $6.2 billion in total cash, cash equivalents, and investments (for a net $5.2 billion after subtracting its $1.0 billion in debt). The company posted a consolidated net loss of $248 million in Q1.
While management has the cash on hand for a $3 billion buyback, the stock been taking hits recently — falling 28% over the past month (and 45% since the beginning of the year) as the company adjusts its safety standards. In April, the video game company slashed its full-year guidance due to age verification hurdles, which have slowed growth.
