Roblox Corporation (RBLX) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

Per the Roarable RQD rating, RBLX scores 46 out of 100, grade D, with the verdict "Roarable Sell — Underperform / Distribution Warning." The five pillars are:

• Fundamental Cash Engine: 10 / 20. Per the RQD rating, this pillar reflects ROIC of -32.5% and an FCF yield of 3.62%. Negative ROIC means the business is currently destroying capital on a return basis, even though free cash flow is positive. The gap between these two measures is the central tension to evaluate.
• Whale 13F Flow: 14 / 20. Per the RQD rating, this reflects institutional accumulation and options positioning. This is the strongest pillar, indicating that some large holders have been building exposure.
• Insider Conviction: 11 / 20. Per the RQD rating, this reflects SEC Form 4 and Congressional PTR cluster flow. The score is moderate and does not signal strong insider confidence.
• Macro Regime Fit: 5 / 20. Per the RQD rating, this reflects a beta of 1.16 and sector sensitivity. This is the weakest pillar, suggesting the stock amplifies broader market moves and may be poorly positioned for certain macro regimes.
• Forensic Balance Sheet: 6 / 20. Per the RQD rating, this reflects an Altman Z-Score of 1.77, a Piotroski F-Score of 5/9, and Debt/Equity of 2.52. These readings sit in a range that the rating treats as weak.

For a prospective investor evaluating the stock today, the rating points to a mixed picture: positive free cash flow and some institutional accumulation, offset by negative returns on capital, high leverage, weak macro fit, and a weak forensic balance sheet. The verdict frames the stock as an underperformance and distribution risk rather than an accumulation candidate. Upside would depend on operating margins moving toward breakeven and on the balance sheet improving; neither is demonstrated in the source data. Valuation tradeoffs are visible in a forward P/E of 30 against negative trailing EPS of -1.5, meaning the market is pricing in earnings recovery that the trailing figures do not yet show.

Roblox Corporation is a NYSE-listed issuer in the Technology sector, operating in the Computer Software: Prepackaged Software industry. Per the profile, the company carries a market capitalization of $37.5B. The source data does not describe its products, customers, or revenue model beyond sector and industry classification.

Revenue grew from $2799.3M (FY 2023) to $4890.6M (FY 2025) per the SEC financials. Operating margin is -25.2% and net margin is -21.9% per the market data, with gross margin at 78.1%. Per the market data, ROIC is -32.5% and the Altman Z-Score is 1.77, with the Piotroski F-Score at 5/9 per the Roarable RQD rating. Debt/Equity is 2.52 per the same rating; debt declined from $4823.2M in FY 2023 to $993.0M in FY 2025 per the SEC financials.

Per the news wire, the recent items include:

• A Seeking Alpha report flagged a rating downgrade with a RED risk-watch light.
• A TradingView report cited a 12-month price target cut to $49.59, implying 5% downside, flagged RED.
• A Quiver Quantitative report described the stock falling on Q3 2026 earnings, flagged RED.
• A MarketBeat report noted a large institutional purchase by Assenagon Asset Management S.A., flagged YELLOW.
• Yahoo Finance and StockInvest.us forecast pieces were flagged YELLOW as market-wire items.

Three of six items carry RED risk-watch flags, concentrated on downgrades, price target cuts, and post-earnings weakness. The Butterfly supply-chain graph reports no supply-chain links and no proprietary signals.

Per the Butterfly Supply-Chain Graph, supply chain is NONE, with no butterfly links and no proprietary signals. The source data therefore does not identify upstream suppliers, downstream customers, or sector correlation paths. The only sector context available is the Technology sector and Prepackaged Software industry classification. A prospective investor should note that the absence of mapped links is a data gap, not evidence of insulation from supply-chain or sector shocks.

• What is the company's product, customer, and revenue-model breakdown, which the source data does not describe?
• What is the path from negative operating margin of -25.2% to profitability, and what is the timeline?
• What drove the decline in debt from $4823.2M (FY 2023) to $993.0M (FY 2025), and is the balance sheet trajectory sustainable?
• What are the specific 13F, insider, and Congressional holdings behind the RQD whale and insider pillar scores?
• Why is the EPS figure for each reported fiscal year listed as N/A, and what is the reported per-share earnings trend?