Why Roblox Loses Billions
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In this video we analyze the video game platform Roblox and discuss why the company is losing money.
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0:00 – 2:15 Intro
2:16 – 4:20 What Is Roblox?
4:21 – 5:21 Revenue Share
5:22 – 7:37 Unit Economics
7:38 – 10:39 Low Revenue Per Player
10:40 Free Cash Flow
@wallstreetmillennial
February 23, 2026 at 6:27 am
👉 Head to https://brilliant.org/wallstreetmillennial/ to start your free 30-day trial and 20% discount on your annual premium subscription.
@ekszentrik
February 23, 2026 at 6:27 am
I lost 100 bucks investing in this dogwater stock.
@Worthlesschannel-v8l
February 23, 2026 at 6:27 am
Well, what do you know?
Roblox just lost 12 billion dollars.
@ElijahRose-u6f
February 23, 2026 at 6:27 am
To be fair, they made a lot of children happy
@RobloxGaming406
February 23, 2026 at 6:27 am
This is all the Lies 😂😂😂 Roblox Never Lose the money is not a sad story is a BS
@maxloewe1
February 23, 2026 at 6:27 am
Wasn't Roblox about unpaid child labour?
@llyrghmnghyll
February 23, 2026 at 6:27 am
Yes, Roblox takes 75% of the robux capital, but that's really a bad way to look at this.
1) They provide the dev tools (R&D above) – roughly 30%
2) they host (based on the above – roughly 23% of costs)
3) they pay the platform fees. (22.55%)
so that's about 75.5% , the developers are getting a deal at 25% . no wonder they are losing money.
@jfraklin
February 23, 2026 at 6:27 am
Not defending Roblox, but they made the game and environment that the developers use to make their games. This is not remotely the same as Steam.
@PortfolioPL
February 23, 2026 at 6:27 am
Video starts at 2:16
@lanceatone
February 23, 2026 at 6:27 am
Roblox: The perfect way to waste your life.
@nicolasmaldonado1428
February 23, 2026 at 6:27 am
3:28 "A Japanese animated TV series", really? In 2024. An ANIME!
@saint_thomasaquire2045
February 23, 2026 at 6:27 am
They’re turning a profit soon bro, just trust me and don’t ask
@honeypieforus
February 23, 2026 at 6:27 am
Worth it,the experience is sucks for they report and development
@survivingthetimes
February 23, 2026 at 6:27 am
In 2025, you would think that there would be a way to keep the bot farms off the platform.
@GCJACK83
February 23, 2026 at 6:27 am
Roblox is a loss leader. They give you a free base game, then DLCs, cosmetics, and characters are paywalled through a slot machine lootbox system. It's the video game equivalent of the Costco hot dog. Costs $1.50, but you'll spend more than that $1.50 once inside.
@gilormsplay
February 23, 2026 at 6:27 am
Thanks for the heads-up. I was about to buy the company.
@Ciaran.Skysong
February 23, 2026 at 6:27 am
Should probably hire a voice actor. Great content – Just painful to focus to this robotic/ai narration.
@Tokmurok
February 23, 2026 at 6:27 am
I play Roblox every now and then to take notes on how not to design my own games. Very educational.
@ScowlieMeerkat
February 23, 2026 at 6:27 am
"A youtuber who goes by the name People Make Games"
@randomchannel-px6ho
February 23, 2026 at 6:27 am
Capitalism is exceeding parody of itself
@DoloresHaze3
February 23, 2026 at 6:27 am
Earnings for Roblox (RBLX)
Earnings in 2024 (TTM): -$1.01 Billion USD
According to Roblox's latest financial reports the company's current earnings are $3.36 Billion USD. In 2023 the company made an earning of -$1.12 Billion USD a decrease over its 2022 earnings that were of -$0.9 Billion USD. The earnings displayed on this page is the company's Pretax Income.
@DoloresHaze3
February 23, 2026 at 6:27 am
i'm playing good fishing right now.
@_Annomander
February 23, 2026 at 6:27 am
One critical point of analysis you missed would be to add the YoY change in deferred revenue back in to gross revenue as a pro forma measure. Revenue recognition rules essentially scew Roblox out of registering cash at the point of sale. Robux (I am presuming, like all digital currencies) are essentially non-refundable. Revenue recognition rules technically mean they cannot recognise sales as they occur, but only after the "magic beans" are spent. The digital currency intermediation artificially suppresses what they can report as revenue. It might be worth adding a section in analysing their pro forma revenue and profitability measures more closely.
You can't distribute Net Income. You can however distribute free cash flow. I presume Roblox uses a measure of revenue closer to gross bookings, ironically making their pro forma adjusted figures actually more representative of their true performance compared to the GAAP measures they are required to present. I don't know anything about the company or the stock, but a company booking significant net losses per year (gaining the associated tax asset as permissable in the US for the losses) and reporting high free cash flow actually seems like it would be worth further analysis.
@hermanjohnson9180
February 23, 2026 at 6:27 am
They're bookin' it 😉
@Cityboy_d
February 23, 2026 at 6:27 am
More than happy to see the game shutting down 😂😂😂
@HelloWorld-pc3ku
February 23, 2026 at 6:27 am
Kids will grow up, when they grow up they will know games is not as important as earning money! 😂seriously complicated can it get?
@buildintotrains
February 23, 2026 at 6:27 am
Heh, I'm in the photo at 1:00
@BlackRoostar-cf2yv
February 23, 2026 at 6:27 am
Because Google will steal it from your cash app if you don't block them.
@willyman77
February 23, 2026 at 6:27 am
epic and roblox gives people the illusion that millions of kids are playing when really its infested with bots like reddit. the money is not in the game but in the data, thats where they make there real money
@codelessunlimited7701
February 23, 2026 at 6:27 am
The majority of the Roblox players grow up, and playing World of Tanks. 😅
@criticality2056
February 23, 2026 at 6:27 am
Taking advantage? Seems like they are doing an awful lot including platform, dev tools, hosting, publishing etc and without charging.
@schalky182
February 23, 2026 at 6:27 am
Pretty sure the split is the other way around
@SFoxtron
February 23, 2026 at 6:27 am
10:37 There's also second or even third account of the same indivitual who just lost the account for various of reasons
@SatsMate
February 23, 2026 at 6:27 am
I am hearing dilution dilution dilution to existing shareholders
@spoogerification
February 23, 2026 at 6:27 am
How do you lose money stealing from children lmao
@bipee3937
February 23, 2026 at 6:27 am
At least they don't have to fear taxes
@john_doe_not_found
February 23, 2026 at 6:27 am
If their users stick with the platform into adulthood, spending per user will increase. But Roblox doesn't have any content that would be appealing to the 18+ crowd.
Also, Roblox needs an Elon Musk to come in and cost cut the place.
@thickcheeks9603
February 23, 2026 at 6:27 am
Roblox makes money by selling shares lol
@maxbig9021
February 23, 2026 at 6:27 am
I unsubscribed from this blogger solely because he shows Zionist ads praising Zionists.
@Doo-W
February 23, 2026 at 6:27 am
since they bloxed me they been losign every day
@H33t3Speaks
February 23, 2026 at 6:27 am
Roblox… 😂😂😂😂😂😂😂😂😂
@ccdriver100
February 23, 2026 at 6:27 am
No
@daithithewanderer
February 23, 2026 at 6:27 am
Not all games are free.
@jackspdr
February 23, 2026 at 6:27 am
Sounds like Roblox should invest in buying politicians like FAANG Facebook and Google are free to use and Amazon had a 10 year plan to see any kind of profit. Yet all billion dollar companies
@dakf660
February 23, 2026 at 6:27 am
Watching this video as my three kids are playing Roblox
@timthompson468
February 23, 2026 at 6:27 am
We have lost our way.
@alexstone1492
February 23, 2026 at 6:27 am
My son spent a day in a virtual beggar game to get a dollar worth of robux. Kids are happy to sit in a game for weeks fishing for badges and virtual items. I don’t get the Roblox revenue model, but I’m glad they offer limitless free play unlike other games.
@Cakebattered
February 23, 2026 at 6:27 am
Roblox losing billions is just incompetence. Roblox has one of the highest levels of player engagement in all of gaming, takes over double the share of in-game revenue compared with PC and console gaming platforms, and pays its game developers in in-game currency rather than US dollars.
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