What Roblox Corporation told the SEC could break it.

Tencent Holdings' designation on a DoD list may, beginning June 2026, restrict Roblox's ability to resell Tencent goods and services to the DOD and could trigger further restrictions on working with Tencent.

“Beginning in June 2026, this may restrict our ability to resell goods and services of Tencent Holdings to the DOD. The designation may also result in negative publicity for us and the China JV.”

Escalating U.S.-China trade tensions and tariffs (since Feb 2025 on nearly all Chinese-origin imports) and retaliatory restrictions could restrict Roblox's ability to participate in its China JV and Chinese markets.

“Tensions between the U.S. and China have resulted in trade restrictions that could harm our ability to participate in Chinese markets and numerous additional such restrictions have been threatened by both countries. As an example, since February 2025, the U.S. government has imposed significant tariffs upon the import of almost all Chinese-origin items, subject to certain exemptions.”

Roblox faces overlapping data-privacy regimes with revenue-based penalties — e.g. China's PIPL allows fines up to 5% of prior-year revenue, UK GDPR up to 4% of global revenue, Brazil's LGPD up to 2% of Brazil revenue.

“Similarly, the Personal Information Protection Law, (“PIPL”) of the People's Republic of China (“PRC”) imposes extraterritorial obligations similar to the GDPR, including strict data localization requirements. Violations can result in corporate fines of up to 50 million RMB or 5% of prior-year revenue.”

Roblox collects ~39% of revenue from outside the U.S./Canada in local currencies; rapid USD appreciation has harmed reported results and can continue to depress foreign and overall revenue.

“As a result, rapid appreciation of the U.S. dollar against these foreign currencies has harmed and may continue to harm our reported results and cause the revenue derived from our foreign users and overall revenue to decrease.”

Although Roblox has millions of creators, user engagement is concentrated: 51% of in-experience hours in December 2025 were spent in just the top 50 experiences, so a fall in their popularity could materially impact DAUs.

“While we have millions of creators on our Platform, a substantial portion of user engagement is concentrated in a relatively small number of highly popular experiences. For example, 51% of in-experience hours engaged were spent in the top 50 experiences in the month ended December 31, 2025.”