So the real reason they’re not profitable is because they’re doing some accounting magic that counts their income spread over the next 27 month, instead of all up front. They are cash flow positive, it’s just that their income numbers are lagging some 2 years behind.
Roblox absolutely doesn’t want to do this “accounting magic”. They originally filed their S-1 with more typical revenue recognition and the SEC forced to change to this frustrating model. [1]
