-
Advertising is Roblox’s biggest profitability lever.
-
Older users already make up most of Roblox’s daily active users, and retaining them as they spend more could dramatically improve monetization.
-
International monetization is a massive untapped growth engine.
-
10 stocks we like better than Roblox ›
Roblox (NYSE: RBLX) has no trouble attracting users. More than 100 million people log in daily to play games, socialize, and build their own experiences. That kind of engagement is rare in digital media — and it’s why many investors see Roblox as a long-term growth story.
But engagement hasn’t translated into profitability. The company continues to post steep losses while trading at a premium valuation. For Roblox to make the leap from cultural phenomenon to sustainable business, it must execute on a few critical priorities. Here are three things Roblox needs to get right to become a profitable stock.
So far, Roblox makes nearly all of its revenue from sales of its in-game currency, Robux. That leaves the business overly dependent on player spending. Advertising offers a way to diversify revenue — and it could be far more profitable.
Roblox is rolling out immersive ad formats, including digital billboards inside games and video ads with rewards, for players over 13. The company even partnered with Google Ad Manager to make it easier for brands to buy campaigns and measure performance. Developers also receive a cut, giving them another income stream and strengthening the ecosystem.
The opportunity is significant. Even a modest $10 in annual ad revenue per user could bring in more than $1 billion in incremental, high-margin revenue. For perspective, Meta generated $13.65 in revenue per person in the second quarter of 2025, suggesting that the opportunity is massive for the gaming company.
But execution matters. Ads must fit naturally into the user experience, advertisers need proof of returns, and regulators will keep a close eye on how ads reach Roblox’s large under-13 audience. If Roblox can get this balance right, advertising could be the key that finally unlocks operating leverage.
Roblox built its popularity among kids, but that strength also creates a ceiling. Younger players generate lower spending per user and bring regulatory challenges around advertising and data privacy.
The company knows this and has been working to “age up” the platform. For instance, the over-13-year-old cohort accounted for 71.4 million of its 111.8 million daily active users (DAU) in the second quarter of 2025. Comparatively, that cohort group had just 36.8 million DAU in the same period two years ago. This development is crucial since older users not only spend more but are also more appealing to advertisers.
