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RBLX Leans on AI-Powered Tools: Catalyst for Long-Term Growth?
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Key Takeaways
Roblox daily active users surged 41% to 111.8M with a record 27.4B hours of engagement.
Cube 3D has generated 1M models, cutting friction for developers and boosting content creation.
AI powers discovery and safety features like RoGuard 1.0, supporting ecosystem growth.
Roblox Corporation ((RBLX - Free Report) ) continues to lean heavily on artificial intelligence as it charts a path for sustained expansion. The company’s second-quarter 2025 results highlighted robust user growth, 111.8 million daily active users, up 41% year over year, and record engagement of 27.4 billion hours. But beneath these metrics lies a deeper story: Roblox’s investment in AI-driven tools that could shape its long-term trajectory.
At the core of this strategy is Cube 3D, Roblox’s generative AI model that allows real-time creation of 3D objects within games. More than 1 million models have already been generated, reducing friction for creators and accelerating development cycles. This capability not only empowers established developers but also lowers entry barriers for newcomers, fueling ecosystem growth.
AI is also enhancing search, discovery and personalization, enabling Roblox to better connect players with relevant content. The company’s transparent recommendation algorithms have been critical in driving viral hits such as Grow a Garden, while also boosting engagement across lesser-known titles. This democratization of discovery ensures broad-based creator monetization — a key factor for long-term ecosystem health.
Importantly, Roblox is pairing its AI advances with safety innovations like RoGuard 1.0, designed to set guardrails for large language models. By addressing trust and safety alongside creative AI, the company strengthens its positioning as a leader in the evolving user-generated gaming economy.
With bookings up 51% and fiscal 2025 guidance raised, Roblox’s AI-powered tools appear less like experimental features and more like structural catalysts. If execution continues, AI could be the lever that helps RBLX capture its ambitious target of 10% of the global gaming content market.
Competing in the AI-Driven Gaming Arena
Roblox’s AI-powered push is not happening in isolation. Unity Software Inc. ((U - Free Report) ) is a direct competitor with strong ties to developers across mobile, console and AR/VR ecosystems. The company has rolled out AI-assisted creation tools, including generative 3D asset production and automated coding aids, aimed at speeding up development cycles. Unity’s technology powers thousands of titles outside the Roblox ecosystem, making it a formidable rival as studios weigh where to build and monetize.
Another challenger is Electronic Arts Inc. ((EA - Free Report) ), a major publisher experimenting with AI to enhance game design and live operations. Electronic Arts has signaled interest in using generative AI for world-building and in-game personalization, potentially enabling its flagship franchises to deliver more dynamic, player-driven experiences.
RBLX Price Performance, Valuation & Estimates
Roblox’s shares have gained 39.7% in the past three months compared with the industry’s rise of 18.3%.
RBLX Three-Month Price Performance
Image Source: Zacks Investment Research
RBLX stock is currently trading at a premium. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 12.59X, well above the industry average of 3.29X.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Roblox’s 2025 loss per share has widened from $1.38 to $1.71 over the past 60 days. This downward revision indicates that analysts have grown more cautious on the company’s near-term earnings profile.
Image Source: Zacks Investment Research
Roblox is likely to report dismal earnings, with projections indicating an 18.8% decline in 2025. RBLX currently has a Zacks Rank #4 (Sell).
Image: Bigstock
RBLX Leans on AI-Powered Tools: Catalyst for Long-Term Growth?
Key Takeaways
Roblox Corporation ((RBLX - Free Report) ) continues to lean heavily on artificial intelligence as it charts a path for sustained expansion. The company’s second-quarter 2025 results highlighted robust user growth, 111.8 million daily active users, up 41% year over year, and record engagement of 27.4 billion hours. But beneath these metrics lies a deeper story: Roblox’s investment in AI-driven tools that could shape its long-term trajectory.
At the core of this strategy is Cube 3D, Roblox’s generative AI model that allows real-time creation of 3D objects within games. More than 1 million models have already been generated, reducing friction for creators and accelerating development cycles. This capability not only empowers established developers but also lowers entry barriers for newcomers, fueling ecosystem growth.
AI is also enhancing search, discovery and personalization, enabling Roblox to better connect players with relevant content. The company’s transparent recommendation algorithms have been critical in driving viral hits such as Grow a Garden, while also boosting engagement across lesser-known titles. This democratization of discovery ensures broad-based creator monetization — a key factor for long-term ecosystem health.
Importantly, Roblox is pairing its AI advances with safety innovations like RoGuard 1.0, designed to set guardrails for large language models. By addressing trust and safety alongside creative AI, the company strengthens its positioning as a leader in the evolving user-generated gaming economy.
With bookings up 51% and fiscal 2025 guidance raised, Roblox’s AI-powered tools appear less like experimental features and more like structural catalysts. If execution continues, AI could be the lever that helps RBLX capture its ambitious target of 10% of the global gaming content market.
Competing in the AI-Driven Gaming Arena
Roblox’s AI-powered push is not happening in isolation. Unity Software Inc. ((U - Free Report) ) is a direct competitor with strong ties to developers across mobile, console and AR/VR ecosystems. The company has rolled out AI-assisted creation tools, including generative 3D asset production and automated coding aids, aimed at speeding up development cycles. Unity’s technology powers thousands of titles outside the Roblox ecosystem, making it a formidable rival as studios weigh where to build and monetize.
Another challenger is Electronic Arts Inc. ((EA - Free Report) ), a major publisher experimenting with AI to enhance game design and live operations. Electronic Arts has signaled interest in using generative AI for world-building and in-game personalization, potentially enabling its flagship franchises to deliver more dynamic, player-driven experiences.
RBLX Price Performance, Valuation & Estimates
Roblox’s shares have gained 39.7% in the past three months compared with the industry’s rise of 18.3%.
RBLX Three-Month Price Performance
Image Source: Zacks Investment Research
RBLX stock is currently trading at a premium. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 12.59X, well above the industry average of 3.29X.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Roblox’s 2025 loss per share has widened from $1.38 to $1.71 over the past 60 days. This downward revision indicates that analysts have grown more cautious on the company’s near-term earnings profile.
Image Source: Zacks Investment Research
Roblox is likely to report dismal earnings, with projections indicating an 18.8% decline in 2025. RBLX currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.