Roblox is projected to lose approximately $1 billion in 2025 despite generating around $4.3 billion in revenue for the year. This means roughly 23% of their revenue is lost. The losses come from high costs related to creator payouts, safety infrastructure, platform fees, and heavy investments in the metaverse. Roblox has faced consistent net losses since its IPO in 2021, and these losses have increased in recent years even with growth in revenue and user numbers. For example, in Q1 2025, Roblox reported $1.04 billion in revenue but was still projecting net losses close to $1 billion for the full year. Operating expenses and payouts to creators consume a large portion of revenue, resulting in this persistent loss despite strong earnings growth.
In recent quarters, net losses have been on the order of hundreds of millions, such as a net loss of $221 million reported for Q4 2024 and a net loss of around $205 million in the second quarter of 2025.
Overall, Roblox is currently losing about $1 billion annually due to its business model and cost structure, even though it continues to grow its revenue and user base robustly.
