If you blinked, you might have missed it, Roblox (NYSE: RBLX) has turned into one of the hottest stocks of 2025.
Up over 2x year-to-date, the company’s market cap has surged past $80 billion, stunning many who once dismissed the platform as a pandemic fad. But here’s the best part, there’s reason to believe Roblox is only just getting warmed up.
So, what’s really fueling this rally, and more importantly, is it still a buy?
Key Points
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Roblox is growing fast, with 26% user growth, 29% more paying users, and a return to positive EBITDA.
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Massive upside remains, as it targets 1 billion users and 10% of global gaming revenue.
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Roblox is a real player in a market expected to 10x, with early traction and key partnerships.
What’s Driving Roblox’s Epic Comeback?
Let’s start with the fundamentals. In Q1, Roblox shocked analysts with a leap in bookings by almost a third year-over-year.
And while top-line momentum is impressive, the real surprise came on the profitability front. For the first time in a while, Roblox posted positive adjusted EBITDA. One year ago, that figure was a $31 million loss. That’s a big turnaround.
But that’s not all. The company also announced a bold new initiative in July, a licensing platform that connects developers with intellectual property owners.
And Wall Street is starting to take notice. Multiple analysts have recently issued bullish reports, citing Roblox’s improving unit economics and monetization strength. While upgrades alone don’t make a stock worth buying, they can pour fuel on an already-rising chart, and that’s exactly what we’ve seen.
The Growth Isn’t Slowing, It’s Accelerating
Roblox’s user base grew 26% year over year last quarter, up from 19% in the quarter before. That’s a notable acceleration, especially for a company already approaching 100 million daily active users. For context, that’s more than double the entire population of Canada logging in every single day.
But here’s the stat that matters most, over 20 million of those users now spend money on the platform at least once a month.
And that number is growing even faster than the user base itself, up just shy of 30% year over year in Q1. That signals Roblox is doing more than just acquiring eyeballs. It’s converting them into paying customers.
Management has publicly stated its long-term goal: 1 billion users. That’s ambitious, no doubt. But consider this, there are more than 3 billion gamers globally, and the number is growing. If Roblox captures even one-third of that market, it could 10x from here. And that’s not even accounting for future monetization improvements.
Aiming for 10% of All Gaming Revenue
Here’s what’s often missed, Roblox’s Chief Product Officer Manuel Bronstein recently said the company’s internal north star is to capture 10% of all gaming content revenue worldwide.
The global gaming market is currently worth about $299 billion. By 2030, that figure could exceed $600 billion. If Roblox pulls off that 10% goal, it’s looking at more than $60 billion in annual revenue. For perspective, it’s currently on track for roughly $4 billion in bookings this year.
That means we’re looking at a potential 15x revenue opportunity, without needing to invent a new business model.
And Then There’s the Metaverse
While the hype may have cooled, Roblox never stopped building. In fact, it remains one of the few real, functional metaverse ecosystems where people spend actual time and money, not to mention socialize, learn, and attend virtual concerts.
Analysts expect the metaverse market to grow more than 10x by 2032, with enterprise use cases like training and education expected to be huge drivers.
Roblox has already partnered with organizations like the NFL and educational nonprofits to create immersive experiences. That gives it an early lead that could pay dividends as the next phase of the internet unfolds.
What About Valuation?
At more than 20x sales, Roblox isn’t cheap by traditional standards. But high-multiple stocks tend to stay expensive when their revenue is recurring, their user base is growing, and their monetization runway is long, all boxes Roblox checks.
And there’s nuance here. Roblox reports both revenue and “bookings” a measure of actual cash received before services are delivered.
Its revenue lags bookings because purchases (like Robux, its in-game currency) are recognized over time. So investors looking at the sales multiple might not realize that bookings, the better leading indicator, have been accelerating for three straight quarters.
This May Be Just the Beginning
Earlier this year, some analysts predicted Roblox could double its market cap within three years. It did that in six months.
But this isn’t just a story of stock price momentum, the business fundamentals have caught up in a big way. A growing paying user base, increasing bookings, big-name partnerships, a licensing model with long-term monetization potential, and a realistic shot at owning a chunk of the metaverse all point to significant upside.