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Roblox Authorizes $3 Billion Buyback, Shares Rise After Hours

The first-ever buyback signals management confidence after a steep cut to this year’s outlook.

Overview

  • Investors bought the dip Monday, lifting RBLX about 9.5% to roughly $46.93 after a week of selling.
  • The board approved up to $3 billion in share repurchases and said it plans to buy up to $1 billion over the next year.
  • Management cut 2026 adjusted revenue guidance to $7.33 billion to $7.6 billion and issued lighter Q2 targets, pointing to slower adoption tied to new age checks that restrict chat for unverified users.
  • Usage remains strong, with daily active users up 35% to 132 million, quarterly bookings up 43% to $1.7 billion, and average monthly payers up 52% to 31 million.
  • Needham reiterated a Buy rating with a $60 price target after third‑party data showed user growth over the weekend.