Aureus
FRed Flag

Roblox Corporation(RBLX)

F

Financial data as of Dec 31, 2025Improving · Communication Services

FCF Margin4.6%Free Cash Flow / Revenue
Cash Conversion-168.7%Operating CF / Net Income
Free Cash Flow$1.4B
Revenue$4.9B
Net Cash-$597.4MNet debt position
Debt / FCF8.1xElevated debt burden
Current Ratio0.96Tight short-term liquidity
YoY FCF Growth+100.0%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1High debt-to-FCF ratio (8.1x)
→
-1Current ratio below 1.0 (0.96)
→
+1Strong YoY FCF growth (100.0% YoY)
→
-0.5Highly volatile FCF (consistency: 7.40)
→
+0.5Strong revenue growth (43.2% YoY) offsets compressed FCF margin
→
FinalF

Analysis Summary

Strengths

  • Strong YoY FCF growth (+100.0%)
  • Strong revenue growth (43.2% YoY)

Concerns

  • Low FCF margin (4.6%)
  • Heavy debt position ($0.6B net debt, 8.1x FCF)
  • High debt-to-FCF ratio (8.1x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF
Heavy CapEx — Operating cash flow is strong (37% margin) but most is reinvestedSBC-adjusted FCF used — $1.1B stock-based compensation (83% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin4.6%
Net Margin-21.8%
Operating CF Margin36.7%
CapEx Ratio9.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$597.4MNet debt position
Debt / FCF8.1xElevated debt burden
Current Ratio0.96Tight liquidity
Debt / Equity4.57High leverage

Quarterly FCF Trend

+100.0% YoYImproving (+100.0%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameRoblox Corporation
SectorCommunication Services
Free Cash Flow$1.4B
Revenue$4.9B
Net Income-$1.1B
Operating Cash Flow$1.8B
Capital Expenditure$443.5M
FCF Margin4.6%
Cash Conversion Rate-168.7%
Net Margin-21.8%
Total Debt$1.8B
Total Cash$1.2B
Net Cash-$597.4M
Current Ratio0.96
Debt / Equity4.57
Debt / FCF8.1x
YoY FCF Growth+100.0%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Communication Services: Eight A-Grades Hiding Three Failures

Half the sector earns A-grades. The other half is bleeding cash or barely breaking even.

Feb 13, 2026
MTCHEAMETANFLX+14