The gaming business stated its novel child safety features are weighing on its bookings numbers.

Roblox is facing over 140 lawsuits in the U.S. Federal Court accusing it of failing to prevent child exploitation.

Roblox shares plummeted 18% on Friday after the business reported first-quarter earnings as its recent child safety measures weighed on bookings.

“Part of what we’re rolling out with age check, we believe, is the real, right long-term way to build this platform,” CEO David Baszucki remarked Friday on CNBC’s “Squawk Box.”

In a letter to shareholders, the gaming organization wrote that its novel age-check feature “restricted on-platform communication for non-age checked users, diluted communication for age-checked users, and slowed fresh user acquisition,” causing greater-than-expected headwinds.

In January, the business restricted its chat feature to users who completed its age-check verification. 73, according to the business% of age-checked daily active users on Roblox were under 18, with 35% under 13 as of Jan. 31.

To account for the slowed growth, Roblox slashed its full-year 2026 guidance.

The enterprise updated its full-year 2026 bookings to fall between $7.33 billion and $7.6 billion. It forecasted 2026 bookings to be almost $1 billion higher last quarter, falling between $8.28 billion and $8.55 billion.

“While our aggressive push to enhance safety lowers our expectations for topline growth in 2026, it makes our platform fundamentally better and amplifies the long-term growth potential of Roblox through more effective content targeting, tailored communication experiences, and improved community sentiment,” the business wrote in its letter to shareholders. Furthermore, experts in earnings report note the continued relevance.

Roblox’s first-quarter results beat Wall Street’s estimates, with a shortfall of 35 cents per share beating the estimated debt of 41 cents per share.In revenue for the quarter, It reported $1.73 billion, narrowly beating analysts’ estimates of $1.72 billion. This also touches on aspects of bull market.

Roblox is facing over 140 lawsuits in U.S. Federal Court accusing the corporation of failing to protect children from sexual exploitation, according to Reuters. Last month, the corporation reached settlements with Alabama and West Virginia, agreeing to pay out a combined $23.2 million.

The enterprise stated novel account types for younger age groups last month, as well as expanded parental controls.