Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-20.4%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-17.1%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt-7.3 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$1.6B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$566M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Price-to-Book80.11x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$596M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings-$152M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Roblox Corporation
Roblox Corporation operates an immersive platform for connection and communication in the United States and internationally. It offers Roblox Client, an application that allows users to explore immersive experience; Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate immersive experiences and other content; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
Roblox Corporation operates an immersive platform for connection and communication in the United States and internationally. It offers Roblox Client, an application that allows users to explore immersive experience; Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate immersive experiences and other content; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-246,000
-316,000
Reconciled Depreciation
61,000
62,989
Reconciled Cost Of Revenue
294,000
315,005
EBITDA
-176,000
-244,113
EBIT
-237,000
-307,102
Net Interest Income
45,000
43,941
Interest Expense
10,000
10,051
Interest Income
55,000
54,354
Normalized Income
-246,000
-316,000
Net Income From Continuing And Discontinued Operation
-246,000
-316,000
Total Expenses
1,736,000
1,773,659
Total Operating Income As Reported
-294,000
-358,638
Diluted Average Shares
711,697
660,900
Basic Average Shares
711,697
660,900
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-246,000
-316,000
Net Income Common Stockholders
-246,000
-316,000
Net Income
-246,000
-316,000
Minority Interests
2,000
2,107
Net Income Including Noncontrolling Interests
-248,000
-318,107
Net Income Continuous Operations
-248,000
-318,107
Tax Provision
1,000
954
Pretax Income
-247,000
-317,153
Other Income Expense
2,000
-2,456
Other Non Operating Income Expenses
2,000
-2,456
Net Non Operating Interest Income Expense
45,000
43,941
Total Other Finance Cost
362
348
Interest Expense Non Operating
10,000
10,051
Interest Income Non Operating
55,000
54,354
Operating Income
-294,000
-358,638
Operating Expense
1,442,000
1,458,654
Other Operating Expenses
747,000
806,518
Research And Development
422,000
409,845
Selling General And Administration
273,000
242,291
Selling And Marketing Expense
64,000
78,465
General And Administrative Expense
209,000
163,826
Other Gand A
209,000
163,826
Gross Profit
1,148,000
1,100,016
Cost Of Revenue
294,000
315,005
Total Revenue
1,442,000
1,415,021
Operating Revenue
1,442,000
1,415,021
Balance Sheet
2026
2025
2024
Ordinary Shares Number
715,795
708,359
Share Issued
715,795
708,359
Net Debt
294,688
Total Debt
1,788,000
1,802,704
Tangible Book Value
273,000
233,626
Invested Capital
1,440,000
1,402,282
Working Capital
-566,000
-228,367
Net Tangible Assets
273,000
233,626
Capital Lease Obligations
780,000
794,906
Common Stock Equity
432,000
394,484
Total Capitalization
1,440,000
1,387,582
Total Equity Gross Minority Interest
411,000
374,980
Minority Interest
-21,000
-19,504
Stockholders Equity
432,000
394,484
Gains Losses Not Affecting Retained Earnings
-5,000
16,555
Other Equity Adjustments
-5,000
16,555
Retained Earnings
-5,307,000
-5,060,694
Additional Paid In Capital
5,744,000
5,438,559
Capital Stock
0
64
Common Stock
0
64
Total Liabilities Net Minority Interest
9,416,000
9,182,138
Total Non Current Liabilities Net Minority Interest
4,108,000
4,055,748
Other Non Current Liabilities
95,000
82,335
Non Current Deferred Liabilities
2,380,000
2,336,959
Non Current Deferred Revenue
2,380,000
2,336,959
Long Term Debt And Capital Lease Obligation
1,633,000
1,636,454
Long Term Capital Lease Obligation
625,000
643,356
Long Term Debt
1,008,000
993,098
Current Liabilities
5,308,000
5,126,390
Other Current Liabilities
426,000
506,235
Current Deferred Liabilities
4,425,000
4,168,971
Current Deferred Revenue
4,425,000
4,168,971
Current Debt And Capital Lease Obligation
155,000
166,250
Current Capital Lease Obligation
155,000
151,550
Current Debt
14,700
Other Current Borrowings
14,700
Pensionand Other Post Retirement Benefit Plans Current
19,000
47,586
Payables And Accrued Expenses
283,000
237,348
Current Accrued Expenses
180,000
73,872
Interest Payable
16,000
6,458
Payables
103,000
163,476
Total Tax Payable
79,000
98,528
Accounts Payable
24,000
64,948
Total Assets
9,827,000
9,557,118
Total Non Current Assets
5,085,000
4,659,095
Other Non Current Assets
26,000
21,644
Non Current Deferred Assets
446,000
448,169
Investments And Advances
2,966,000
2,492,593
Investmentin Financial Assets
2,966,000
Held To Maturity Securities
0
Available For Sale Securities
2,966,000
Goodwill And Other Intangible Assets
159,000
160,858
Other Intangible Assets
17,000
18,234
Goodwill
142,000
142,624
Net PPE
1,488,000
1,535,831
Accumulated Depreciation
-740,000
-684,441
Gross PPE
2,228,000
2,220,272
Leases
269,000
262,733
Construction In Progress
93,000
179,571
Other Properties
639,000
651,055
Machinery Furniture Equipment
1,227,000
1,126,913
Current Assets
4,742,000
4,898,023
Other Current Assets
13,000
11,061
Current Deferred Assets
867,000
832,941
Prepaid Assets
86,000
63,015
Receivables
577,000
935,864
Accrued Interest Receivable
39,000
35,218
Accounts Receivable
538,000
900,646
Cash Cash Equivalents And Short Term Investments
3,199,000
3,055,142
Other Short Term Investments
2,011,000
1,849,823
Cash And Cash Equivalents
1,188,000
1,205,319
Cash Flow
2026
2025
2024
Free Cash Flow
596,000
307,077
Issuance Of Capital Stock
31,000
4,021
Capital Expenditure
-33,000
-299,921
End Cash Position
1,188,000
1,205,319
Beginning Cash Position
1,205,000
1,016,825
Effect Of Exchange Rate Changes
-2,000
-3,009
Changes In Cash
-15,000
191,503
Financing Cash Flow
31,000
4,021
Cash Flow From Continuing Financing Activities
31,000
4,021
Net Common Stock Issuance
31,000
4,021
Common Stock Issuance
31,000
4,021
Investing Cash Flow
-675,000
-419,516
Cash Flow From Continuing Investing Activities
-675,000
-419,516
Net Other Investing Changes
2,000
Net Investment Purchase And Sale
-644,000
-119,595
Sale Of Investment
1,373,000
1,246,174
Purchase Of Investment
-2,017,000
-1,365,769
Net Business Purchase And Sale
0
0
Purchase Of Business
0
0
Net Intangibles Purchase And Sale
-1,500
0
Purchase Of Intangibles
-1,500
0
Net PPE Purchase And Sale
-33,000
-298,421
Purchase Of PPE
-33,000
-298,421
Operating Cash Flow
629,000
606,998
Cash Flow From Continuing Operating Activities
629,000
606,998
Change In Working Capital
529,000
546,607
Change In Other Working Capital
270,000
699,403
Change In Other Current Liabilities
-94,000
77,983
Change In Other Current Assets
-5,000
-148
Change In Payables And Accrued Expense
19,000
50,843
Change In Accrued Expense
53,000
47,186
Change In Payable
-34,000
3,657
Change In Account Payable
-34,000
3,657
Change In Prepaid Assets
-27,000
-12,205
Change In Receivables
366,000
-269,269
Changes In Account Receivables
366,000
-269,269
Other Non Cash Items
24,000
31,976
Stock Based Compensation
275,000
298,376
Asset Impairment Charge
1,504
722
Amortization Of Securities
-12,000
-16,347
Depreciation Amortization Depletion
61,000
62,989
Depreciation And Amortization
61,000
62,989
Net Income From Continuing Operations
-248,000
-318,107
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.0B▲ $1.4B+39.3%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 78.3%▲ 79.6%+1.4pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -28.4%▼ -20.4%+8.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -20.8%▼ -17.1%+3.7pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.4B/qtr (≈$5.8B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.89x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$596M
vs Positive
Operating Cash Flow
$629M
Latest quarter · Buffett's cash reality check
ROIC
-5.1%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
84.2x
Net Assets: $411M
Asset Context — Electronic Gaming & Multimedia
Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.
Peers & Industry
No auto-detected peers for Electronic Gaming & Multimedia. You can manually compare RBLX against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
5.49%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-56.9%
Weak — poor returns on equity
Return on Assets (ROA)
-2.5%
Poor — assets are not generating adequate returns
Debt Trend YoY
-0.8% YoY
Debt is declining — management is deleveraging
Leadership Team
David Baszucki
Founder, President, CEO & Chairman of the Board
Age 60
Pay: $1,896,832
Naveen Chopra
Chief Financial Officer
Age 51
Pay: $3,719,117
Ant van Rensburg
Senior Vice President of Strategy & Operations
Top Institutional Holders
Institution
% Owned
Shares
FMR, LLC
6.94%
46,619,099
Blackrock Inc.
5.82%
39,079,760
Vanguard Portfolio Management LLC
4.56%
30,600,996
Capital International Investors
4.34%
29,177,063
Vanguard Capital Management LLC
4.25%
28,552,688
Morgan Stanley
3.44%
23,073,205
Capital World Investors
3.35%
22,473,240
BAILLIE GIFFORD & CO
3.19%
21,423,012
⚠️Very high debt-to-equity — leverage risk
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.44
Moderate volatility — moves slightly more than market
Short Interest
3.7% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
4.35x
High leverage — significant financial risk
Current Ratio
0.89x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $40.15Current: $51.53High: $150.59
Currently at 10% of 52-week range
Roblox Corporation (RBLX) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 79.6%. Operating margin: -20.4%. Net margin: -17.1%. Market cap: $36.9B. Sector: Communication Services. Industry: Electronic Gaming & Multimedia. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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