Roblox Introduces Slim Avatar Compositing Technology
Roblox has unveiled a new avatar compositing technology called Slim, aimed at enabling more complex avatars to operate smoothly on low-end Android devices. This innovative tech was introduced as part of Roblox’s Incubator programme, in line with the company’s efforts to optimize performance for avatars and worlds on both low-end Android and high-end PC platforms.
CEO David Baszucki shared during the Q2 2026 earnings call that Roblox foresees mobile becoming the primary platform for game creation moving forward, particularly with the introduction of Build, its new AI-powered creation tool. Baszucki expressed his belief that mobile devices will revolutionize the gaming landscape, allowing users to create everything from simple 2D puzzle games to intricate 3D multiplayer experiences within Roblox Studio.
Build has already been launched in New Zealand, where Baszucki noted that more users are utilizing Build for daily creations compared to the traditional Roblox Studio. This tool leverages generative AI to enable users to describe experiences in a conversational manner and collaborate on shaping them before finalizing more intricate builds in Studio.
Despite reporting a 36% year-on-year increase in Q2 revenue to .5 billion, Roblox experienced a slowdown in bookings growth to 8%, falling at the lower end of expectations. The company also saw a reduction in consolidated net loss to 5 million from 0 million the previous year, while adjusted EBITDA surged to 2 million from million in Q2 2025.
Looking ahead, Roblox anticipates Q3 bookings to range between .58 billion and .65 billion, indicating a year-on-year decline of 14-18%. This projection is attributed to softer monetization following adjustments to the discovery algorithm and age-verification rollout. Despite reaching 123 million daily active users, a 10% increase year-on-year, user numbers have declined from a peak of approximately 152 million three quarters ago.
Following the release of these financial results, markets responded negatively, with Roblox shares plummeting around 27-30% the day after the report. This sharp decline marked one of the stock’s most significant single-day drops on record, as investors focused on the weak Q3 guidance and decelerating user growth rather than the narrower loss.
