Wedbush Lowers Roblox's Fiscal 2026 Estimates Ahead of Second Quarter Results
Wedbush has revised down its fiscal 2026 estimates for Roblox Corp (NYSE:RBLX) ahead of the company’s second-quarter earnings report. The downgrade is attributed to ongoing challenges from age-verification measures that are affecting user access, particularly among younger and mobile-focused users. The firm reduced its daily active user (DAU) forecast to 129.3 million from 135 million, along with lowering bookings expectations to $7.40 billion and adjusted EBITDA estimates to $1.51 billion. Wedbush maintains an 'Outperform' rating and a $65 price target for Roblox despite the revisions. Analysts noted that while user growth is being impacted, especially in Asia-Pacific and Rest-of-World regions with lower monetization rates, this may limit the effect on bookings. The firm will be closely monitoring engagement trends, advertising progress, regional regulatory developments, and legal issues related to child safety as key factors ahead of Roblox’s July 30 earnings report.
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