• Earlier in June 2026, EDO announced it was extending its outcomes-based ad measurement into gaming by partnering with Roblox, while Roblox had already globally rolled out new Roblox Kids and Roblox Select accounts introducing stricter age-based controls, age checks, and enhanced parental oversight for users under 16.
• Together, these moves tighten Roblox’s safeguards for younger players while giving brands TV-like tools to compare immersive Roblox campaigns against broader Convergent TV advertising benchmarks.
• We’ll now examine how stricter age verification and kids’ account controls might reshape Roblox’s long-term investment narrative and growth profile.

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Roblox Investment Narrative Recap

To own Roblox, you need to believe its massive user base can turn into a durable, monetizable ecosystem despite ongoing losses and a rich valuation. Right now, the key near term catalyst is the Q2 2026 earnings print, where investors are watching bookings, DAU trends, and any update on guidance after the stock’s 42% year to date drop. The biggest current risk is that stricter safety and age verification efforts slow organic user growth more than expected, which recent lawsuits have already brought into focus.

Among the latest developments, the global rollout of Roblox Kids and Roblox Select accounts is most relevant here. It directly intersects with that core risk by tightening access and controls for under 16 users at the same time as a securities class action questions how age checks have affected organic growth. How these new protections show up in Q2 and later user and bookings metrics could meaningfully color the market’s reaction to any earnings surprise.

But even with these safety upgrades, investors should be aware that Roblox still faces meaningful regulatory and legal uncertainty around how it handles young users and advertising...

Roblox's narrative projects $11.5 billion revenue and $1.3 billion earnings by 2029. This requires 29.4% yearly revenue growth and about a $2.4 billion earnings increase from -$1.1 billion today.

Uncover how Roblox's forecasts yield a $65.83 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were modeling Roblox revenue of about US$14.2 billion and earnings near US$696 million by 2029, which is a far bolder story than consensus, and the new safety and advertising developments could either reinforce that bullish view or instead highlight the very real regulatory risk around children that might temper those expectations.

Explore 10 other fair value estimates on Roblox - why the stock might be worth over 2x more than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Roblox research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Roblox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Roblox's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.