Roblox (RBLX) Q2'26 Earnings Review Continued Focus on Optimizing for the Long Term

Equity Research 31 July 2026 | 12:06AM EDT

Roblox (RBLX) Q2’26 Earnings Review: Continued Focus on Optimizing for the Long-Term; 2H Operating Trajectory Needed to Improve Investor Confidence

RBLX 12m Price Target: $60.00 Price: $48.67 Upside: 23.3% BUY Eric Sheridan In its Q2 ’26 earnings report, Roblox (RBLX) management framed a | Goldman Sachs & Co. LLC few key themes: 1) continued prioritization of new & evergreen Julia Fein-Ashley games which have higher retention rates relative to 2025 viral hits; | Goldman Sachs & Co. LLC 2) while management believes that prioritizing new/evergreen games is critical to the long-term health of the platform, hourly Achal Gupta | Goldman Sachs India SPL monetization rates seen within those experiences are lower (relative to 2025 viral hits) and as a result are expected to weigh on hourly monetization rates during Q3; 3) a forward Adj. EBITDA guidance Key Data _____________________________________ Market cap: $34.9bn that came in well below GS/Street estimates, with mgmt. expecting Enterprise value: $35.0bn 3m ADTV: $546.2mn fixed cost deleverage during the quarter; & 4) solid progress on a United States number of platform initiatives – incl. the increase of age-check Americas Internet M&A Rank: 3 verification (with the US & Australia now north of 70%+), with mgmt. GS Forecast __________________________________ remaining focused on advancing toward their long-term goal (90%). 12/25 12/26E 12/27E 12/28E Revenue ($ mn) New 6,788.4 6,833.9 8,073.2 9,504.3

In the coming quarters, we believe that further visibility into user Revenue ($ mn) Old 6,788.4 7,345.5 8,944.0 10,786.6 EBITDA ($ mn) 1,726.9 1,211.7 1,546.7 1,957.3 growth (acquisition, retention & conversion rates of paying users – EBIT ($ mn) (1,232.3) (1,349.8) (1,131.9) (1,044.9)

across an array of age cohorts), monetization (on a per hour basis), EPS ($) New EPS ($) Old and engagement heading into 2H will likely be needed for investors P/E (X) Dividend yield (%) -- -- -- -- to gain confidence around the long-term growth algorithm of RBLX. Net debt/EBITDA (X) (0.1) 0.1 (0.7) (1.4) Heading into a period of tougher comps in 2H26, questions around 6/26 9/26E 12/26E 3/27E an elevated competitive landscape within the gaming market, paired EPS ($) with increased levels of investments - investors will likely anchor GS Factor Profile ______________________________ around 2027/2028 operating estimates to more accurately reflect Growth

the operational trajectory & valuation assigned to the business. Financial Returns

That said, we believe that the investments being made into various Multiple

platform & product initiatives are supportive of executing against Integrated Roblox’s long-term goals including: 1) increasing share of the global gaming market (10%+ share globally); 2) increasing user Percentile 20th 40th 60th 80th 100th

monetization on the back of a number of initiatives (on a bookings RBLX relative to Americas Coverage

per user basis) – with improvements largely driven by improved RBLX relative to Americas Internet

payer conversion rates, various initiatives (incl. optimized & dynamic Source: Company data, Goldman Sachs Research estimates. See disclosures for details. pricing) and the scaling of novel experiences; & 3) scaling Adj. EBITDA margins in 2027+. Away from near-term debates, we

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Roblox (RBLX) Balance Sheet ($ mn) _______________________________________ BUY Rating since Oct 31, 2025 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 1, ,074.7 3,713.1 Accounts receivable ,017.5 Inventory -- -- -- -- Ratios & Valuation __________________________________________ Other current assets 2,792.1 3,044.6 3,192.8 3,366.0…