Roblox Corp. on Wednesday missed Wall Street estimates for quarterly revenue by a wide margin after the video games developer changed its accounting practices, sending shares down 14% in premarket trading.
The company's revenue grew 2% to $517.7 million in the third quarter ended Sept. 30, lower than analysts' expectation of $686.3 million.
Roblox changed the period of estimated paying user life to 28 months from 25 months, resulting in a $111 million decrease in revenue during the reporting quarter. It also lowered costs by $25.5 million.
The company's results come as growth rates plummet in the broader gaming sector after people stepped outdoors and reserved spending for essential items in a bid to counter inflation.
Compounding challenges further, a deteriorating economy continues to ravage the advertising industry, including giants such as Snap Inc and Facebook owner Meta Platforms .
Net loss for Roblox grew to $297.8 million, or 50 cents per share, in the quarter, from $74.0 million, or 13 cents per share.
© 2026 Thomson/Reuters. All rights reserved.