Roblox expects revenue growth to slow and bookings to decline in the current quarter as it makes changes to its platform geared toward safety and discovery and invests in artificial intelligence.

The videogame company also withheld its full-year outlook, transitioning to a quarterly-only guidance earlier than scheduled. The company said that while its long-term revenue growth expectations remain unchanged, the trajectory of its growth won't be linear due to the variability of its business and timing of its investments.

"Given our long-term focus we do not believe annual guidance is a helpful tool for investors," Roblox said in a letter to shareholders.

For the current quarter, Roblox projects revenue to increase by 4% to 10%, slowing from recent double-digit growth, to a range of $1.41 billion to $1.49 billion. The company projects bookings will decline 14% to 18%, to $1.58 billion to $1.65 billion.

The guidance ranges were below Wall Street's forecasts, with analysts polled by FactSet expecting both revenue and bookings to come in around $1.87 billion.

The stock slid 12%, to $42.90, afterhours on Thursday. At market close, shares were down 40% year to date.

The weak forecast came as Roblox's bookings growth slowed in the latest quarter, landing at the low end of its prior guidance range. Bookings, a metric that reflects deferred revenue, rose 8% to $1.56 billion, compared with analysts' estimate of $1.6 billion.

The company pointed to a decline in per hour monetization as users, especially younger cohorts in the U.S. and Canada, engage more with new and evergreen games with lower hourly monetization, compared with high monetizing, 2025-vintage viral games. Changes in the company's recommendations algorithm, which provides more impressions for highly retentive games at the expense of near-term monetization, added further pressure.

Roblox's second-quarter loss came in at $183 million, or 26 cents a share, compared with a loss of $278 million, or 41 cents a share, a year earlier. Analysts polled by FactSet were looking for a loss of 34 cents a share.

Revenue climbed 36% year over year to $1.47 billion, compared with analyst estimates of $1.6 billion.

Average daily active users rose 10% to 123 million, while hours engaged ticked up 5% to 29 billion.