Roblox Achieves Investment-Grade Credit Rating from S&P Global, Boosting Stock Price

Roblox, a video game platform, has earned its first investment-grade credit rating from S&P Global Ratings, upgrading from BB+ to BBB-. The rating reflects strong growth in user base, rising gross bookings, and healthier free operating cash flow. This milestone may lower borrowing costs and open the door to institutional investors. Roblox's stock has doubled in 2025, with analysts having a Moderate Buy consensus rating and an average price target of $142.10, implying 12.1% upside potential.

Roblox, the popular video game platform, has achieved a significant milestone by receiving its first investment-grade credit rating from S&P Global Ratings. The company's credit rating has been upgraded from BB+ to BBB-, reflecting strong growth trends and a healthier financial profile. This upgrade is a testament to Roblox's robust user base expansion, rising gross bookings, and improved free operating cash flow (FOCF).

The positive outlook from S&P Global Ratings suggests that the company will continue to benefit from strong user growth, engagement, and monetization, driving further growth in gross bookings and FOCF. The rating agency also highlighted Roblox's commitment to maintaining a conservative financial policy and a strong balance sheet, with a net cash position [1].

Roblox has more than doubled its daily active users (DAUs) to 111 million as of June 30, 2025, from 50 million at the end of 2021. This expansion has been driven by diversifying the user base geographically and by age cohort. S&P Global expects Roblox to raise its gross bookings to $5.9 billion in 2025 and $7.3 billion in 2026, while its FOCF is projected to improve to $1.2 billion this year and $1.4 billion next year [1].

The upgrade to an investment-grade rating may lower Roblox's borrowing costs and open the door to institutional investors, potentially providing further capital for growth and expansion. This development comes at a time when Roblox's stock has doubled in 2025, with analysts maintaining a Moderate Buy consensus rating and an average price target of $142.10, implying a 12.1% upside potential [2].

However, Roblox faces challenges beyond its financial performance. The company recently suspended the account of YouTuber RealSchlep, who had been exposing alleged predators in Roblox. The platform accused Schlep of violating safety rules and interfering with its established safety protocols. This incident has sparked a debate over the balance between safety and community action in online gaming platforms [2].

Despite these challenges, Roblox's credit rating upgrade signals a positive development for the company and its investors. The upgrade is a recognition of Roblox's strong fundamentals and growth prospects, which may attract further investment and support the company's continued expansion.

References:
[1] https://seekingalpha.com/news/4484875-sp-global-ups-rating-on-roblox-to-bbb
[2] https://m.economictimes.com/news/new-updates/roblox-suspends-youtuber-realschleps-account-after-viral-predator-catch-operation-says-he-is-being-punished-for-it/articleshow/123261209.cms