Roblox (RBLX), the user-generated gaming platform, reported third-quarter 2026 bookings of $1.7 billion, down 12% year-over-year, after bookings had grown 8% in the second quarter and 43% in the first. The company said the result surpassed the high end of its guidance range and that, on a two-year basis, bookings were up more than 50%.

Revenue was $1.6 billion, up 16% year-over-year, after 36% growth in the second quarter and 39% in the first. The company said constant-currency year-over-year growth rates for revenue and bookings were consistent.

Daily active users were 138 million, down 9% year-over-year, and hours engaged reached nearly 34 billion, down 15% year-over-year, as the company lapped difficult comparisons to 2025 growth. On a two-year basis, DAUs and Hours were up 55% and 63%, respectively. Sequentially, DAUs rose 12% from the second quarter and Hours rose 17%.

Bookings per Hour grew approximately 4% year-over-year globally and 2% in the U.S. and Canada, improving relative to year-over-year trends in the second quarter. The company said monetization trends for younger U.S. cohorts remained challenged by difficult prior-year comparables, partially offset by realized improvements from updates to its Recommended for You algorithm. Average monthly unique payers totaled 30 million, down 16% year-over-year, while average bookings per MUP increased 5% year-over-year.

O18 users represented 29% of global age-checked DAUs and 37% of U.S. age-checked DAUs, up from 27% and 33% as of the second quarter. The company said O18 is its fastest-growing cohort and that, in the U.S., O18 users monetize more than 50% above U18 users. U.S. age 18-34 DAUs grew 26% year-over-year and Hours 23%; U.S. O18 DAUs grew 18% and Hours 13%. International DAUs grew 12% year-over-year in France and 13% in Germany, and 33%, 37%, and 30% in Japan, India, and Saudi Arabia, respectively.

Consolidated net loss was $230 million, compared with $258 million a year earlier. Adjusted EBITDA was $138 million, compared with $46 million in the year-ago quarter. Operating cash flow was $395 million and free cash flow was $364 million. The company said free cash flow reflected lower-than-expected capital expenditures, as a significant portion of spending shifted from the third quarter into the fourth. Total cash, cash equivalents, and investments was $6.2 billion as of September 30, 2026.

Cost of revenue grew 7% year-over-year to $318 million. Developer Exchange fees declined 6% year-over-year to $403 million. Certain Infrastructure and Trust & Safety expenses grew 24% year-over-year to $258 million, which the company said was driven by AI-related investments including training and inference costs. Personnel costs excluding stock-based compensation grew 12% year-over-year to $281 million.

The company said more than 80% of the top 100 games ranked by hours engaged used AI tools to accelerate creation, and that daily asset uploads to the Roblox cloud tripled month-over-month. Since the alpha launch of Build, more than 500,000 users had used the tool and published over 70,000 games. Published game volume using AI grew more than 50% quarter-over-quarter.

Roblox said it plans to launch the first phase of Roblox Everywhere in the first half of next year by publishing select top games, and that Roblox Reality will be available in early access in the first half of 2027. In the third quarter it repurchased 4.4 million shares for approximately $200 million, with about $2.4 billion of repurchase authorization remaining as of September 30, 2026.