Moody’s Upgrades Roblox Outlook to Positive on Strong Growth and Liquidity

Moody’s Ratings has revised Roblox Corporation’s outlook to positive from stable, while affirming its Ba1 corporate family rating, citing the company’s improving credit profile and expectations of sustained growth over the next 12–18 months. The decision reflects Roblox’s ability to outperform its own guidance with rising engagement, user expansion, and bookings.

The gaming and metaverse platform has experienced remarkable user growth, with daily active users climbing to 112 million in Q2 2025, up from 33 million in Q2 2020. This represents a 27% average annual growth rate. Notably, the platform has broadened its appeal to older demographics, with users over 13 now making up 64% of daily active users, compared to 44% in 2020.

Financially, Roblox remains strong. As of Q2 2025, the company held $3.7 billion in net cash, including marketable securities, compared to $2 billion in 2023. Moody’s reported that leverage stood at 3.7x total debt to EBITDA (with adjustments for cash), but expects Roblox to reduce leverage to 2.0x–2.5x in the coming year. Additionally, the company is projected to raise its free cash flow-to-debt ratio to 60%–70%, building on nearly $1 billion in free cash flow generated over the last twelve months ending June 30, 2025.

The agency also highlighted Roblox’s recent safety improvements introduced in Q3 2025, aimed at creating a more secure experience for younger users, who still account for 36% of the user base.

Moody’s affirmed Roblox’s SGL-1 speculative grade liquidity rating, reflecting strong liquidity of about $4.7 billion in cash and securities. The Ba1 rating on its $1 billion senior unsecured notes due 2030 was also reaffirmed, underscoring Roblox’s solid financial standing and growth trajectory in the competitive online gaming and metaverse market.