Citi reiterates sell rating on Roblox with $70 price target

Citi analyst Jason Bazinet reiterated a Sell rating and $70.00 price target on Roblox Corp. (NYSE: RBLX), following the company's second-quarter fiscal 2026 results.

Roblox reported second-quarter bookings 2% below consensus estimates, while covenant adjusted EBITDA came in 11% above Street expectations. Average daily active users reached approximately 123 million, in line with consensus.

For the third quarter of fiscal 2026, Roblox guided bookings in a range of $1.57 billion to $1.65 billion, compared to Street expectations of $1.84 billion. The company's third-quarter covenant adjusted EBITDA outlook of $158 million to $199 million falls approximately 47% below consensus on a midpoint basis.

Bazinet noted that full-year guidance was not provided, adding: "We suspect with the 3Q26 guidance, the firm will be providing quarterly guidance in 4Q26 and all future periods, consistent with management's communications strategy outlined in 4Q25."

Shares of Roblox closed at $48.67 prior to the announcement.

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