Roblox shares drop 17% as weak Q4 guidance overshadows a Q3 beat

The gaming platform topped Wall Street estimates on revenue, earnings and bookings, but shrinking engagement and rising AI costs spooked investors Roblox beat Wall Street’s expectations for the third quarter. Investors responded by knocking roughly 17% off the stock in after-hours trading. The culprit was the outlook. The company issued fourth-quarter guidance that pointed to falling bookings, while flagging higher spending on artificial intelligence. The numbers behind the selloff Roblox reported its Q3 2026 results on October 29. Revenue came in at $1.572 billion, a 16% increase from the same period a year earlier. Bookings totaled $1.697 billion, down 12% year over year. Revenue and bookings are related but distinct metrics: bookings reflect what players spent during the quarter, while revenue is recognized on a different schedule. It still landed above the high end of the company’s own prior guidance. Net loss narrowed to $230 million, compared with $258 million a year earlier. Diluted loss per share was $0.32, better than the $0.43 consensus estimate. Fewer players, less playtime Daily active users averaged 138 million in the quarter, down 9% from a year earlier. Hours engaged...