On July 31, Roblox Corporation fell over 16% in pre-market trading. The decline was triggered by the company's Q2 earnings report, which missed on key metrics while issuing weak Q3 guidance. Daily active users came in at 123 million, below the consensus estimate of 128.71 million, reflecting continued drag from age-verification requirements. While EPS of -$0.26 beat the -$0.30 estimate, Q3 bookings guidance of $1.58B-$1.65B fell significantly short of the $1.77B consensus. The company also announced it will no longer provide annual guidance.

Adding to the pressure, the EU confirmed Roblox has surpassed the Digital Services Act's 45 million monthly user threshold and may be designated a \"very large online platform\" as early as August, subjecting it to stricter content moderation obligations with potential fines up to 6% of global annual revenue. D.A. Davidson subsequently cut its price target from $45 to $40.

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