Roblox Corporation

Geopolitical and trade · Regulatory and policy uncertainty

The scope and interpretation of laws, regulations, and other requirements that are or may be applicable to us, are often uncertain and may differ or conflict from jurisdiction to jurisdiction. We have policies and procedures designed to promote compliance with applicable laws and regulations, but we cannot assure you that authorities will not assert or determine that our practices violate such laws and regulations.

Economic and market conditions · Consumer spending and confidence

If the inflation rate continues to remain high, it will likely affect all of our expenses, including, but not limited to, employee compensation expenses and energy expenses and it may reduce consumer discretionary spending, which could affect the buying power of our users and creators and lead to a reduced demand for our Platform.

Geopolitical and trade · International conflicts and tensions

Following Russia's invasion of Ukraine, the U.S. and other countries imposed certain economic sanctions and severe export control restrictions against Russia and Belarus and have continued to strengthen these controls. These countries could continue to increase these sanctions and export restrictions or take other actions that could impact our business.

Natural and catastrophic events · Natural disasters and extreme weather

Natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce, and the global economy, and thus could harm our business. We have our headquarters and a large employee presence in San Mateo, California, an area which in recent years has been increasingly susceptible to fires, severe weather events, and power outages.

Social and demographic · Public perception and reputation

We believe that maintaining, protecting, and enhancing our reputation and brand is critical to grow the number of creators and users on our Platform, especially given the safe and civil atmosphere that we strive to achieve for our users, many of whom are children.

Capital structure and performance · Financial reporting and accounting risks

If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below expectations of securities analysts and investors. For example, the majority of the virtual items available on our Platform are durable virtual items, which, when acquired, are recognized ratably over the estimated period of time the virtual items are available to the user.

Digital transformation and innovation · Artificial intelligence and automation

Our continued success significantly depends on our ability to effectively navigate the integration of rapidly evolving technologies such as generative AI into our business and address their impact on our threat landscape. The market for an immersive platform for connection and communication is a new and evolving market characterized by rapid, complex, and disruptive changes in technology.

Information management · Technology vendor dependence

We depend on effectively operating with third-party operating systems, hardware, and networks that may make changes affecting our operating costs, as well as our ability to maintain our Platform, which would hurt our business. For the year ended December 31, 2025, 29% of our revenue was attributable to Robux sales through the Apple App Store and 15% through the Google Play Store.

Technology infrastructure · Legacy systems and technical debt

The experiences and technologies on our Platform are complex software products and maintaining the sophisticated internal and external technological infrastructure required to reliably deliver these experiences and technologies is expensive and complex.

Data and privacy · Consumer privacy and consent

Because a large number of our DAUs are historically under 13, we face significant risks under the Children's Online Privacy Protection Act ('COPPA'), Article 8 of the GDPR, and similar regulations. COPPA imposes requirements on operators of websites or online services directed to children under 13 years of age to obtain verifiable parental consent.

Data and privacy · Regulatory investigations and penalties

Allegations of noncompliance with the DSA can and have led to investigations and other proceedings, such as the Roblox investigation announced in January 2026 by the Netherlands. The DSA imposes significant penalties for non-compliance including fines of up to 6% of annual global revenues.

Tax and financial reporting · Tax compliance and changes in tax law

Changes in tax laws and unclaimed property audits by governmental authorities could have a material adverse effect on our business, cash flow, results of operations, or financial conditions. We are subject to tax laws, regulations, and policies of several taxing jurisdictions.

Tax and financial reporting · Transfer pricing and international tax

Double taxation of our international earnings and potentially adverse tax consequences due to changes in the tax laws of the U.S. or the foreign jurisdictions in which we operate.

Legal and litigation · Product liability and warranty claims

We may incur liability as a result of content published using our Platform or as a result of claims related to content generated by our creators and users, including copyright infringement, and legislation regulating content on our Platform may require us to change our Platform or business practices.

Legal and litigation · Litigation and legal proceedings

We are subject to numerous legal proceedings and expect to continue to be the target of litigation and regulatory scrutiny globally. The legal proceedings have involved or could involve claims by private parties as well as regulators such as state Attorneys General that arise in the ordinary course of business, including intellectual property, privacy, biometrics, cybersecurity, data protection, consumer protection, product liability, social media and video game addiction.

Organizational and management · Leadership and management changes

We depend on the continued services and performance of our Founder, President, CEO, and Chair of our Board of Directors, David Baszucki. Mr. Baszucki has been responsible for our strategic vision, and should he stop working for us for any reason, it is unlikely that we would be able to immediately find a suitable replacement.

Reputation and brand · Brand damage and negative publicity

The success of our business model is contingent upon maintaining a strong reputation and brand, including our ability to provide a safe online environment for our users, many of whom are children, to experience and if we are not able to provide such an environment, our business will suffer dramatically.

Stakeholder relations · Supplier and vendor relationships

We rely on third-party distribution channels and third-party payment processors to facilitate purchases by our Platform users. If we are unable to maintain a good relationship with such providers, if their terms and conditions change, or if we fail to process or ensure the safety of users' payments, our business will suffer.

Stakeholder relations · Customer satisfaction and loyalty

If users or creators do not perceive our Platform to be reliable or of high quality, the value of our brand could diminish, thereby decreasing the attractiveness of our Platform. Further, we have faced and are currently defending against class actions and civil lawsuits alleging that our Platform has been used by criminal offenders.

Innovation and product development · Intellectual property protection and infringement

Failure to protect or enforce our intellectual property rights or the costs involved in such enforcement would harm our business. Our success depends to a significant degree on our ability to obtain, maintain, protect, and enforce our intellectual property rights, including our proprietary software technology, know-how, and brand.