Roblox has reported a sharp decline in its second-quarter earnings, sending its share price down almost 27 percent since the announcement on 31st July. Player engagement and spending both fell, and the company declined to give earnings guidance for the rest of the year, warning investors to expect another weak quarter ahead. Roblox attributed the downturn to a lack of viral new games and a shift among players towards experiences with less monetisation, marking a difficult period for a firm that depends on constant growth.

Daily active users fell for the third quarter running, from 152 million to 123 million, while monthly unique players dropped from 37 million to 27 million over two quarters. The company's share price has now fallen 70 percent over the past year, from highs above $125 to around $36, wiping billions off its valuation. The results come as Roblox continues to face scrutiny over child safety on its platform, having introduced facial recognition-based age verification amid ongoing criticism of its handling of predatory behaviour.