Roblox shares dropped 70% after Q2 results showed monetisation came in 2% below company guidance. The CFO attributed the shortfall to a shift in user engagement away from high-monetising viral games toward lower-monetising experiences, compounded by algorithm changes that prioritise long-term retention over near-term spending — particularly among users under 13. Roblox forecasts Q3 bookings of $1.58–$1.65 billion, representing a 14–18% year-over-year decline, and warned that monetisation weakness is likely to continue. The company is investing in AI-powered creator tools but expects higher infrastructure costs as a result.
