SEC Confirms Roblox Part of Unspecified Ongoing Investigation
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Key points
- The SEC has confirmed that Roblox appeared in the ongoing investigation.
- In early February, Roblox’s shares dropped after it missed the analyst forecast regarding daily active users.
- According to the recent report, Roblox’s revenue reached $988.2 million, showing a 32% year-over-year increase.
The Securities and Exchange Commission (SEC) has confirmed that Roblox is currently appearing in the “active and ongoing” investigation. While the specifics remain undisclosed, the SEC has provided few details beyond acknowledging Roblox’s involvement.
On Feb. 7, 2025, Bloomberg reported the SEC’s confirmation of the investigation, though no further context was offered. The regulatory body has made it clear that additional information could potentially harm the ongoing enforcement proceeding, refusing to elaborate further. Meanwhile, Roblox Corp has not responded to Bloomberg’s request for comment.
“We have confirmed with the Division of Enforcement staff that there are responsive emails between Enforcement staff referencing Roblox and that these emails are part of an active and ongoing investigation,” an SEC spokesperson informed Bloomberg via a Freedom of Information request.
A week earlier, despite positive news about the company’s revenue and bookings, Roblox’s shares dropped 11.06% because the entity failed to match analyst expectations of growing daily active users in spite of forecasts of 88.4 million by Wall Street analysts. Overall player platforms’ engagement also declined by 9.7 percent in the same period to 18.7bn hours.
It is worth noting that on Oct. 8, 2024, a report from Hindenburg Research alleged that Roblox was lying to investors about exactly how many people are actually using the game. By Hindenburg Research’s estimate, Roblox was presumably inflating its claims on how many individuals are actively playing Roblox by 25-42%, while engagement hours are supposedly being inflated by 100%.
Despite that, according to the recent report for the fourth quarter of 2024, Roblox’s revenue reached $988.2 million, showing a 32% year-over-year increase.
