February 5, 2026
Finance

Roblox Anticipated to Report Increased Q4 Loss Amid Analyst Price Target Adjustments

Roblox's latest quarterly figures set for release with mixed analyst revisions signaling cautious optimism

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Summary

As Roblox Corporation prepares to announce its fourth quarter earnings, projections indicate a wider loss per share compared to the previous year. Despite revenue growth expectations, several leading analysts have revised their price targets downward while maintaining generally positive stances on the stock. Market response has been notably subdued ahead of the earnings release, reflecting investor caution.

Key Points

Roblox is projected to report a quarterly loss of 48 cents per share for Q4, up from 33 cents a year ago.
Estimated revenue for the quarter stands at $2.08 billion, demonstrating substantial year-over-year growth from $1.36 billion.
Several prominent analysts have lowered their price targets recently but mostly maintain buy or outperform ratings, signaling cautious optimism.
Roblox has surpassed revenue estimates in the majority of recent quarters, presenting consistent topline strength despite escalating losses.

Roblox Corporation, headquartered in San Mateo, California, is scheduled to present its financial results for the fourth quarter following the market close on Thursday, February 5. Market analysts project the company will report a loss of 48 cents per share for the quarter, representing a significant increase from the 33 cents per share loss reported during the same period last year. Concurrently, expected revenue for the quarter is estimated at approximately $2.08 billion, marking an increase from $1.36 billion reported a year earlier.

This anticipated growth in revenue continues a pattern for Roblox, which has surpassed revenue expectations in three consecutive quarters and in seven out of the last ten quarters overall. Nonetheless, the company's shares experienced a decline of 3.6%, closing at $63.07 on the Wednesday preceding the earnings report, signaling investor apprehension about the widening losses.

A review of analyst sentiment highlights several key brokerage firms expressing varied evaluations:

  • Wedbush: Analyst Alicia Resse upheld an Outperform rating but reduced the price target substantially from $165 to $110 as of January 30, 2026. Her historical accuracy rate stands at 54%.
  • BTIG: Clark Lampen maintained a Buy rating for Roblox stock but decreased the price objective from $174 to $141 on January 28, 2026. Lampen's accuracy has been recorded at 66%.
  • Morgan Stanley: Matthew Cost affirmed an Overweight rating, adjusting his price target downward from $170 to $155 on January 13, 2026. He possesses an accuracy rate of 65%.
  • Wells Fargo: Ken Gawrelski also sustained an Overweight rating while lowering his price target from $141 to $107 on January 8, 2026, with an analyst accuracy of 67%.
  • Jefferies: James Heaney kept a Hold rating and trimmed the price rating from $115 to $100 on December 11, 2025, maintaining a 67% accuracy rate.

The downward adjustments in price targets across top analysts suggest tempered expectations for near-term price appreciation, despite overall positive sentiment towards Roblox's business trajectory. The variance in price targets, from $100 up to $155, reflects differing perspectives on valuation amid earnings growth tempered by increasing loss per share figures.

Roblox’s track record in beating revenue estimates adds a favorable aspect for investors focusing on topline growth. However, the widening quarterly loss presents an area of concern and emphasizes the company's ongoing challenges in managing profitability amid expanding operations.

Market participants would do well to watch the earnings release closely, as it will provide further clarity on whether Roblox can sustain its revenue momentum while working towards improved earnings performance. The analyst community's cautious recalibrations rather than outright bearish revisions indicate that while risks exist, optimism about the company’s potential endures.

Risks
  • Worsening earnings losses may pressure investor sentiment and share price.
  • Reductions in analyst price targets reflect uncertainty concerning short-term valuation potential.
  • The stock’s recent decline ahead of earnings indicates market caution possibly arising from profitability concerns.
  • The balance between substantial revenue growth and expanding losses poses profitability and operational risk.
Disclosure
Education only / not financial advice
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