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Paige Oamek

Roblox craters after Q1 daily active users miss estimates while management slashes full-year guidance

The bottom is falling out of Roblox in postmarket trading after the video game company’s Q1 daily active users fell short of estimates and management cut full-year guidance.

For the period ended March 31, the company reported: 

  • Net revenue of $1.44 billion (compared to analyst estimates for $1.42 billion).

  • Daily active users of 132 million (estimate: 143.8 million).

The real pain, though, comes from the reduced full-year outlook, with management lowering their view for sales to between $5.87 billion and $6.14 billion, down from a range of $6.02 billion to $6.29 billion. In other words, the old base case for sales is now their best-case scenario.

The firm also cut its outlook for 2026 bookings (money spent on in-game currency known as Robux) to a range of $7.33 billion to $7.6 billion (previously $8.28 billion to $8.55 billion).

Analysts were way off-side, having expected full-year revenue of $6.6 billion and bookings of $8.4 billion.

The stock hit its lowest level since October 2024 in the after-hours session. It’s been languishing near its 52-week low after halving over the past six months, with analysts wondering whether the kid-focused company has a plan to stay out of legal trouble, monetize, and “age up” in the years ahead. 

Roughly one-third of the video game company’s users are under 13. This month, Roblox announced expanded controls for parents and the rollout of Roblox Kids (for ages 5 to 8) and Roblox Select (for ages 9 to 15) this June. These launches are one part of its multitiered safety plan, which includes third-party biometric scans — something kids have been expertly outsmarting. 

Roblox’s decision to cut its guidance for 2026 was “largely safely-related,” Roblox’s C-suite said on Thursday’s earnings call. As Roblox started age-gating, CFO Naveen Chopra explained, many users lost access to intercommunications on the platform — resulting in a lack of engagement and daily active users, as well as negative App Store reviews (which management also blamed on running annoying ads).

David Baszucki, Roblox CEO:

“We have seen a reduction in App Store rating, and we believe this may be contributing to a reduction in organic sign ups that typically flow from app stores.”

Naveen Chopra, Roblox CFO:

“We do know that the fact that we had more sign up headwinds over the last few months is going to put pressure on bookings over the remainder of the year.”

Over the past month, the company has also importantly settled with several states over lawsuits that allege the company failed to implement proper security to protect children from adults on the site, which showed up in the company’s quarterly bill.

The platform paid out $1.5 billion to creators in 2025, and the company overall remains in the red.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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