-- Roblox (RBLX) reset near-term expectations after lowering its 2026 guidance, with the rollout of mandatory facial age checks slowing new-user sign-ups and contributing to Q1 deceleration, Wedbush Securities said Friday in a report.
The company's per-user economics, retention, and engagement intensity remain healthy, and the slowdown is concentrated at the user-acquisition stage rather than within the experiences themselves, the report said.
Roblox's core revenue drivers, including developer payouts, advertising partnerships, and in-experience subscriptions, remain intact, the report said.
Wedbush outlines a recovery path tied to getting its messaging and social features back to normal, improving app-store ratings, and bringing more 18-plus users onto the platform in H2.
Wedbush slashed its price target on Roblox stock to $65 from $90 and maintained its outperform rating.
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