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Unity vs. Roblox: Which 3D Content Stock Is the Better Buy Now?
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Key Takeaways
Unity stock has rebounded, with stronger ad-tech growth, cost discipline and enterprise expansion.
Roblox bookings soared 51% in 2Q25 with 41% daily active user growth and record engagement hours.
Unity trades at 8.76X forward sales vs. 11.92X for Roblox, highlighting differing valuations and risks.
The 3D content industry sits at the intersection of gaming, social interaction and enterprise applications, and two names dominate investor conversations today — Unity Software Inc. ((U - Free Report) ) and Roblox Corporation ((RBLX - Free Report) ). While Unity is best known for its powerful game engine used across gaming, film, automotive and enterprise simulations, Roblox has built an immersive user-generated platform that blends entertainment, social networking and commerce.
What makes them worth comparing now is that both stocks have staged big moves in 2025. Unity has rebounded strongly after a challenging restructuring cycle, buoyed by growth in ad-tech and cost discipline. Roblox, meanwhile, has delivered blockbuster user engagement numbers and record bookings, driving its stock to new highs. Yet both also face challenges, from Unity’s enterprise adoption hurdles to Roblox’s legal and safety controversies.
For investors deciding between these two 3D content leaders, the question boils down to which business model offers the better balance of growth, profitability and risks at current valuations. Let us dive deep and closely compare the fundamentals of the two stocks to determine which is the better investment now.
The Case for U Stock
Unity has been in rebuilding mode since late 2023, when backlash over proposed runtime fees and multiple rounds of layoffs put the company’s reputation under strain. Fast-forward to 2025, and the story looks brighter.
The opportunity lies in Unity’s role as a critical enabler of 3D content creation. Its game engine powers nearly half of mobile and indie titles, while adoption in industries like automotive (simulation), architecture and film continues to expand. The Vector ad platform also gives Unity exposure to the $400-billion-plus digital advertising market, a segment with far greater monetization potential than licensing fees alone.
Within the Unity Ad Network, Vector delivered 15% sequential revenue growth in second-quarter 2025, with early signs that the momentum is carrying into the third quarter.
Unity acknowledged some weakness in its broader ad products in the second quarter as resources were shifted toward launching Vector, which muted overall ad revenue growth.
However, management expects a stronger trajectory in the third quarter for several reasons. Stabilization is returning to non-network ad products, supported by product upgrades and AI integration. The Unity Ad Network now represents about half of ad revenues, giving its faster growth more weight in overall results. Vector is delivering increasing value, with user acquisition quality and volume improving beyond the prior 15-20% lift. Together, these factors are projected to support mid-single-digit sequential growth in the ad segment for the third quarter.
U maintains a dominant role as the software backbone for game development. Roughly 70% of the top mobile games worldwide are built on Unity, giving the company a unique data advantage. This scale not only strengthens its Create and Grow segments but also positions Unity to feed Vector’s AI with high-quality behavioral data. Management views this as a long-term catalyst for sustained growth, particularly from 2026 onward.
The Case for RBLX Stock
Roblox has captured Wall Street’s attention with sheer growth velocity. In second-quarter 2025, bookings soared 51% year over year, daily active users jumped 41% and total engagement hours climbed 58%. These metrics underscore Roblox’s unique positioning — it is not just a game but a full-blown creator economy platform, wherein users build, share and monetize experiences.
The rise has translated into stronger financials. Roblox ended the quarter with $942 million in free cash flow, $4.7 billion in cash and $5.1 billion in deferred revenues. Management raised full-year bookings guidance to nearly $6 billion, well ahead of earlier forecasts. Popular new content, such as the viral “Grow a Garden” experience, highlights how user-generated creativity continues to drive stickiness and monetization opportunities.
Yet Roblox is not without risks. Legal controversies tied to child safety have dented its reputation and even knocked more than 10% off the stock earlier this month. Regulatory scrutiny is unlikely to disappear, given the platform’s demographic skew toward younger audiences.
Roblox’s engagement flywheel, creator ecosystem and monetization levers could sustain double-digit growth for years. But the legal overhang and premium valuation mean investors are paying up for that growth with little room for error.
Beyond financial pressure, Roblox is navigating several operational challenges. Advertising remains an untapped revenue stream and will take time to scale, even with its new Google partnership. The company also faces seasonality risks, with much of the fourth-quarter 2025 performance depending on late-quarter bookings.
To support rapid user and engagement growth, Roblox must continue investing in infrastructure, safety and discovery tools, though these efforts require significant resources. Leadership transitions, such as the departure of Manuel Bronstein, add uncertainty.
How Does Zacks Consensus Estimate Compare for U & RBLX?
The Zacks Consensus Estimate for U’s 2025 EPS implies a year-over-year upsurge of 146.4%. Earnings estimates for fiscal 2026 have increased in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RBLX’s 2025 loss per share is pegged at $1.71, whereas it incurred a loss of $1.44 in the prior-year quarter. However, in the past 30 days, loss estimates have widened for 2025.
Image Source: Zacks Investment Research
Price Performance & Valuation
The U stock has skyrocketed 130.8% in the past year compared with the industry’s growth of 40%. Conversely, RBLX shares have soared a whopping 182.7% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
U is trading at a forward 12-month price-to-sales ratio of 8.76X, above its median of 4.98X over the last year. RBLX’s forward sales multiple sits at 11.92X, above its median of 7.24X over the same time frame.
P/S(F12M)
Image Source: Zacks Investment Research
End Notes
From the comparison, Unity appears better positioned than Roblox at this point because it offers a more balanced mix of growth potential, improving profitability and diversification beyond gaming. Unity has emerged from its restructuring phase with stronger discipline, a clearer focus on scaling its ad-tech platform, and expanding use cases across industries like automotive, film, and architecture, reducing dependence on gaming alone.
By contrast, Roblox is delivering impressive user growth and engagement, but it continues to face widening losses, regulatory risks, and heavy reliance on its younger user base.
U currently carries a Zacks Rank #3 (Hold), while RBLX has a Zacks Rank #4 (Sell).
Image: Bigstock
Unity vs. Roblox: Which 3D Content Stock Is the Better Buy Now?
Key Takeaways
The 3D content industry sits at the intersection of gaming, social interaction and enterprise applications, and two names dominate investor conversations today — Unity Software Inc. ((U - Free Report) ) and Roblox Corporation ((RBLX - Free Report) ). While Unity is best known for its powerful game engine used across gaming, film, automotive and enterprise simulations, Roblox has built an immersive user-generated platform that blends entertainment, social networking and commerce.
What makes them worth comparing now is that both stocks have staged big moves in 2025. Unity has rebounded strongly after a challenging restructuring cycle, buoyed by growth in ad-tech and cost discipline. Roblox, meanwhile, has delivered blockbuster user engagement numbers and record bookings, driving its stock to new highs. Yet both also face challenges, from Unity’s enterprise adoption hurdles to Roblox’s legal and safety controversies.
For investors deciding between these two 3D content leaders, the question boils down to which business model offers the better balance of growth, profitability and risks at current valuations. Let us dive deep and closely compare the fundamentals of the two stocks to determine which is the better investment now.
The Case for U Stock
Unity has been in rebuilding mode since late 2023, when backlash over proposed runtime fees and multiple rounds of layoffs put the company’s reputation under strain. Fast-forward to 2025, and the story looks brighter.
The opportunity lies in Unity’s role as a critical enabler of 3D content creation. Its game engine powers nearly half of mobile and indie titles, while adoption in industries like automotive (simulation), architecture and film continues to expand. The Vector ad platform also gives Unity exposure to the $400-billion-plus digital advertising market, a segment with far greater monetization potential than licensing fees alone.
Within the Unity Ad Network, Vector delivered 15% sequential revenue growth in second-quarter 2025, with early signs that the momentum is carrying into the third quarter.
Unity acknowledged some weakness in its broader ad products in the second quarter as resources were shifted toward launching Vector, which muted overall ad revenue growth.
However, management expects a stronger trajectory in the third quarter for several reasons. Stabilization is returning to non-network ad products, supported by product upgrades and AI integration. The Unity Ad Network now represents about half of ad revenues, giving its faster growth more weight in overall results. Vector is delivering increasing value, with user acquisition quality and volume improving beyond the prior 15-20% lift. Together, these factors are projected to support mid-single-digit sequential growth in the ad segment for the third quarter.
U maintains a dominant role as the software backbone for game development. Roughly 70% of the top mobile games worldwide are built on Unity, giving the company a unique data advantage. This scale not only strengthens its Create and Grow segments but also positions Unity to feed Vector’s AI with high-quality behavioral data. Management views this as a long-term catalyst for sustained growth, particularly from 2026 onward.
The Case for RBLX Stock
Roblox has captured Wall Street’s attention with sheer growth velocity. In second-quarter 2025, bookings soared 51% year over year, daily active users jumped 41% and total engagement hours climbed 58%. These metrics underscore Roblox’s unique positioning — it is not just a game but a full-blown creator economy platform, wherein users build, share and monetize experiences.
The rise has translated into stronger financials. Roblox ended the quarter with $942 million in free cash flow, $4.7 billion in cash and $5.1 billion in deferred revenues. Management raised full-year bookings guidance to nearly $6 billion, well ahead of earlier forecasts. Popular new content, such as the viral “Grow a Garden” experience, highlights how user-generated creativity continues to drive stickiness and monetization opportunities.
Yet Roblox is not without risks. Legal controversies tied to child safety have dented its reputation and even knocked more than 10% off the stock earlier this month. Regulatory scrutiny is unlikely to disappear, given the platform’s demographic skew toward younger audiences.
Roblox’s engagement flywheel, creator ecosystem and monetization levers could sustain double-digit growth for years. But the legal overhang and premium valuation mean investors are paying up for that growth with little room for error.
Beyond financial pressure, Roblox is navigating several operational challenges. Advertising remains an untapped revenue stream and will take time to scale, even with its new Google partnership. The company also faces seasonality risks, with much of the fourth-quarter 2025 performance depending on late-quarter bookings.
To support rapid user and engagement growth, Roblox must continue investing in infrastructure, safety and discovery tools, though these efforts require significant resources. Leadership transitions, such as the departure of Manuel Bronstein, add uncertainty.
How Does Zacks Consensus Estimate Compare for U & RBLX?
The Zacks Consensus Estimate for U’s 2025 EPS implies a year-over-year upsurge of 146.4%. Earnings estimates for fiscal 2026 have increased in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RBLX’s 2025 loss per share is pegged at $1.71, whereas it incurred a loss of $1.44 in the prior-year quarter. However, in the past 30 days, loss estimates have widened for 2025.
Image Source: Zacks Investment Research
Price Performance & Valuation
The U stock has skyrocketed 130.8% in the past year compared with the industry’s growth of 40%. Conversely, RBLX shares have soared a whopping 182.7% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
U is trading at a forward 12-month price-to-sales ratio of 8.76X, above its median of 4.98X over the last year. RBLX’s forward sales multiple sits at 11.92X, above its median of 7.24X over the same time frame.
P/S(F12M)
Image Source: Zacks Investment Research
End Notes
From the comparison, Unity appears better positioned than Roblox at this point because it offers a more balanced mix of growth potential, improving profitability and diversification beyond gaming. Unity has emerged from its restructuring phase with stronger discipline, a clearer focus on scaling its ad-tech platform, and expanding use cases across industries like automotive, film, and architecture, reducing dependence on gaming alone.
By contrast, Roblox is delivering impressive user growth and engagement, but it continues to face widening losses, regulatory risks, and heavy reliance on its younger user base.
U currently carries a Zacks Rank #3 (Hold), while RBLX has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.