Roblox RSU’s: EVERYTHING you need to know!
If you’re a Roblox employee or investor, you’re probably wondering what’s next after the company’s stock took a significant hit this past week. Knowing how to navigate your Roblox RSU holdings may make a big difference in protecting your wealth. In this blog, we’ll tell you everything you need to know.
But first!
We are financial advisors for tech employees with stock options, RSU’s, and other forms of equity compensation. To join our newsletter and receive updates on the market and how to manage your wealth, follow my posts on LinkedIn.
RBLX shares can be SUPER volatile!
In February 2025, Roblox (RBLX) reported a 32% increase in revenue to $988.2 million and a 21% rise in bookings to $1.36 billion. However, these numbers fell short of market expectations, particularly in daily active users (DAUs), which grew by 19% year-over-year to 85.3 million but missed the anticipated 88.3 million.
In response, Roblox's stock price dropped nearly 14% on Thursday, February 6, closing at $65.06. (YCharts.com)
All these ups and downs can leave you confused as to the best thing to do. Financial reports and stock market news updates can often seem like foreign jargon, but for employees with shares through Roblox Restricted Stock Units (RSUs) the key question is:
What should you do with your shares now?
What Employees Holding RBLX Shares need to know
Let’s start at square one.
What is an RSU?
Restricted Stock Units (RSUs) are a type of stock-based compensation that some Roblox employees receive as part of their pay. Each RSU is a promise from the company to give you one share of Roblox stock in the future, usually based on a vesting schedule.
How do RSUs Work?
RSUs are designed to reward employees for contributing to the company’s success. The higher the stock price, the more valuable your RSUs becomes.
Unlike stock options, RSUs always have value (as long as Roblox’s stock price stays above zero). However, you don’t actually own the shares until they vest, meaning you can’t sell or transfer them before that happens.
The Roblox RSU vesting schedule looks something like this, as of the company’s most recent 10k filing:
- Before July 2022: RSUs typically vested over 4 years.
- After July 2022: RSUs typically vest over 3 years.
So, let’s say that you stay with Roblox for a while and your RSUs become vested.
What now?
What happens when RSUs Vest?
Once RSUs vest, they convert into actual shares and appear in your brokerage account. At that point, you can choose to hold or sell them. It’s up to you.
IMPORTANT to note:
- RSUs are treated as income.
- They are taxed like your salary at ordinary income tax rates, when they vest.
For Roblox employees, the stock’s volatility raises important considerations about their RSUs holdings. This is not unique to RBLX; employees at many companies where stock compensation is significant often grapple with the same decision:
Should you buy, hold, or sell?
Understanding RSU Tax Implications
Many employees overestimate the tax burden of selling RSUs. Here’s what you need to know:
- Your cost basis is the vesting price, not the price at which the RSUs were originally granted. The price of the stock when the RSUs were granted is irrelevant. When the shares vest, it is all income tax. For example, if 100 shares vest when it is $50 a share, your income is $5,000.
- Most Roblox RSUs follow a three-year vesting schedule on a quarterly basis.
- When shares vest, they transfer to a brokerage account. These shares are taxed as income, and you can either pay the taxes out of pocket or sell some RSUs to cover them. They are now your shares free and clear.
- The good news is that if you sell right away, your additional tax may be minimal if the share price has not moved, and you may even be able to take a loss. Be sure to wait thirty days to avoid wash sale rules. Basically, the IRS disallows losses on stocks you sell, if you were to buy back the shares within 30 days. For example, if you had shares that vested within the past thirty days, selling too early could lower or eliminate the tax benefit of the loss. Remember to ask your CPA if you have any questions about this!
There is no one-size-fits-all answer when deciding whether to hold or sell company stock, whether it be Roblox shares or any other company, but proactive planning is essential:
- Diversification Matters: Having a plan to systematically liquidate Roblox RSUs and reinvest elsewhere may help manage single-stock risk.
- Stock Price Volatility: Roblox RSUs might allow you to buy at a lower valuation, but you should evaluate whether the company’s fundamentals justify the price drop. Or are you risking the loss of your income to further decline?
- Employment Risk: If stock prices decline too much, companies often take cost-cutting measures, including layoffs. Employees should be cautious about trying too much of their net worth to company stock. You could end up losing your job and savings.
For Roblox employees, recent stock performance may feel unsettling, but seeking professional financial advice or using dedicated RSU planning tools may help navigate these uncertainties effectively.
Understanding your Roblox RSUs choices is key. Got a question on your Roblox benefits? Set up a 15 minute chat with Alex: https://calendly.com/alex-sykoncap/talk-to-alex
