For Roblox, its business model centers on the Robux digital currency, which users purchase to acquire virtual items, accessories, and in-game enhancements through a robust marketplace.

Investors will have to weigh the benefits of massive user growth against ongoing losses and a rising valuation.

Roblox's players can buy Robux on an a la carte basis or through discounted subscriptions, while creators can accumulate it and cash it in for real-world currencies.

Philipp Batura did not originally plan to build a fashion company when he joined Roblox (RBLX) in 2020 during the pandemic, but his three-person startup Topcat has grown into one of the platform's ...