Quarterly Report — Q3 2025
Filed October 30, 2025
Revenue hit $919M in Q3 2025, up 29% year-over-year from $713M, with nine-month revenue climbing to $2.7B versus $2.1B a year ago. The net loss narrowed meaningfully to $240M for the quarter (vs. $280M a year ago), though the company still burned through $1.1B in accumulated losses over the first nine months. Geographic diversification is progressing — Asia-Pacific and Rest of World regions are growing faster than the core U.S./Canada market, which still accounts for roughly 43% of revenue.
Filing details
Performance by segment
Single Operating Segment
Roblox operates as a single operating segment. Revenue grew 48% YoY to $1.36 billion in Q3 2025 and 33% YoY to $3.48 billion for the nine months ended September 30, 2025. Bookings surged 70% YoY to $1.92 billion in Q3 2025, driven by average daily unique paying users nearly doubling from approximately 1,143,000 to approximately 2,250,000. DAUs reached 151.5 million in Q3 2025, with hours engaged of 24.9 billion and ABPDAU increasing to $0.14 daily.
Cost of Revenue (Payment Processing)
Cost of revenue, primarily payment processing fees, increased 45% YoY to $296.5 million in Q3 2025, driven by bookings growth and a shift toward consumable virtual items which accounted for 22% of virtual item-related revenue versus 8% in the prior year quarter. The introduction of differential Robux pricing in November 2024 has shifted some sales toward lower-fee distribution channels.
“We intend to use nearly all of any efficiencies earned in this area over time to increase earnings for our developers and creators.”
Developer Exchange Fees
Developer exchange fees surged 85% YoY to $427.9 million in Q3 2025, outpacing bookings growth due to differential Robux pricing, the launch of Creator Rewards replacing the legacy EBP program in July 2025, and an 8.5% increase in the earned Robux-to-fiat exchange rate effective September 5, 2025. Over 32,000 developers and creators were qualified for the Developer Exchange Program as of September 30, 2025.
“A major goal of ours is to continue increasing developer and creator earnings by continuing to (i) create new earnings methods and enhancing existing ones and (ii) pass on efficiencies realized in other areas of our business, while maintaining reasonable margins.”
Infrastructure and Trust & Safety
Infrastructure and trust & safety expenses increased 31% YoY to $321.4 million in Q3 2025, primarily from a $61.1 million increase in data center and technical infrastructure costs. Moderation and customer support costs decreased by $6.2 million for the nine-month period due to AI-driven efficiency gains. The prior year quarter included a one-time $17.9 million depreciation acceleration related to software license useful life reassessment.
“We have been and expect to continue investing in AI and automation to increase the accuracy and efficiency of our safety moderation and customer support related efforts.”
Research and Development
R&D expenses grew 9% YoY to $398.3 million in Q3 2025, reflecting continued headcount growth in engineering, design, and product teams. As a percentage of revenue, R&D declined from 40% to 29% YoY, demonstrating significant operating leverage. Stock-based compensation within R&D was $195.8 million in Q3 2025.
Advertising and Brand Partnerships
While Roblox does not break out advertising as a separate financial segment, the filing notes bookings include "an insignificant amount from advertising and licensing arrangements" and the company plans to "invest in and expand our advertising business for the foreseeable future." Sales and marketing expenses increased 28% YoY to $67.1 million in Q3 2025, with advertising and promotional expenses up $7.7 million.
“We plan to invest in and expand our advertising business for the foreseeable future.”
Geographic: United States and Canada
U.S. and Canada revenue grew 40% YoY to $816.7 million in Q3 2025, representing 61% of total revenue. For the nine-month period, the region generated $2.13 billion, also 61% of total revenue. The U.S. alone accounted for 56% and 58% of consolidated revenue for the three and nine months ended September 30, 2025.
Geographic: Europe
European revenue grew 58% YoY to $264.6 million in Q3 2025, representing 19% of total revenue, up from 18% in the prior year quarter. For the nine-month period, European revenue reached $662.9 million.
Geographic: Asia-Pacific
Asia-Pacific revenue grew 60% YoY to $152.9 million in Q3 2025, representing 11% of total revenue, up from 10% in the prior year quarter. For the nine-month period, the region generated $377.6 million.
Geographic: Rest of World
Rest of World revenue grew 73% YoY to $125.5 million in Q3 2025, representing 9% of total revenue, up from 8% in the prior year quarter. Approximately 83% of DAUs were from outside the U.S. and Canada region.