RBLX

The headline screens look broken — a -$1.07B net loss, -$1.54 diluted EPS, a meaningless -33.5 P/E, -270% ROE — but they badly misstate the live business. Revenue hit $4.89B and, crucially, growth re-accelerated to +35.8% (from +28.6% in FY2024 and +25.6% in FY2023): a rare second-derivative win at this scale. The MD&A shows why GAAP and cash diverge so sharply: the $1.07B net loss converts to $1.80B of operating cash flow (+118.5%) once you add back $1,129.0M of stock-based comp, $225.8M of D&A, and a $1,935.3M jump in deferred revenue from current-period bookings. Roblox recognizes Robux/booking revenue over time, so reported revenue lags actual cash collected — GAAP understates demand. After $441M of capex, free cash flow is roughly $1.36B.

The balance sheet looks alarming on ratios — equity of just $394M, liabilities/equity of 23.28x, a -$5.06B accumulated deficit — but those are accounting artifacts. The bulk of liabilities is deferred revenue (customer prepayments, a sign of demand, not leverage), and equity is thin because cumulative SBC and losses have drained book value. Real leverage is modest: $993M long-term plus $14.7M current debt against $1.21B cash (and ~$949M of investment securities bought during the year). The platform funds itself and is roughly net cash.