AppLovin Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Key takeaways

Revenue rose 53 percent: Second-quarter revenue was $1,924 million, against $1,259 million a year earlier. Six-month revenue was $3,766 million, up 56 percent. Source
Adjusted EBITDA rose 58 percent: Adjusted EBITDA was $1,614 million, against $1,018 million, with a margin of 84 percent against 81 percent. Six-month Adjusted EBITDA was $3,171 million, up 62 percent. Source
Research and development costs more than doubled: Research and development expense was $99.9 million, against $44.0 million a year earlier. General and administrative expense fell to $40.3 million from $55.0 million. Source
Free Cash Flow reached $863 million: Net cash from operating activities was $869.0 million and Free Cash Flow was $863.3 million, against $768.1 million a year earlier. First-quarter Free Cash Flow was $1,286.7 million. Source
Second-quarter buybacks totaled $551 million: The company repurchased and withheld 1.1 million Class A shares for $551.3 million, against 2.2 million shares and $1.0 billion in the first quarter. Source
Third-quarter revenue range set: Revenue for the third quarter of 2026 is guided to $2,055 million to $2,085 million. Source

“Net cash from operating activities was $869.0 million and Free Cash Flow was $863.3 million for the second quarter 2026.”
AppLovin Corp., press release

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	third quarter 2026	$2,055 million to $2,085 million	New
Adjusted EBITDA Source	third quarter 2026	$1,710 million to $1,740 million	New
Adjusted EBITDA margin Source	third quarter 2026	83%	New

What changed from last quarter

New guidance: Guidance table now covers the third quarter of 2026; the prior release had given second-quarter 2026 guidance. Source

Results and growth drivers

Revenue rose 53 percent: Second-quarter revenue was $1,924 million, against $1,259 million a year earlier. Six-month revenue was $3,766 million, up 56 percent. Source
Net income and diluted EPS rose: Net income was $1,267 million, up 55 percent from $820 million. Diluted EPS was $3.76, against $2.39 a year earlier; continuing-operations diluted EPS was $3.76, against $2.26. Source
Adjusted EBITDA rose 58 percent: Adjusted EBITDA was $1,614 million, against $1,018 million, with a margin of 84 percent against 81 percent. Six-month Adjusted EBITDA was $3,171 million, up 62 percent. Source
Operating income rose to $1,494 million: Income from operations was $1,494.3 million, against $957.7 million a year earlier. Net income from continuing operations was $1,266.5 million. Source

Costs and margins

Research and development costs more than doubled: Research and development expense was $99.9 million, against $44.0 million a year earlier. General and administrative expense fell to $40.3 million from $55.0 million. Source
Total costs rose to $429 million: Total costs and expenses were $429.4 million, against $301.1 million a year earlier. Source
Cost of revenue and marketing rose: Cost of revenue was $225.8 million against $155.1 million, and sales and marketing was $63.4 million against $46.9 million. Source
Other income turned positive: Other income, net was $62.4 million, against an expense of $22.3 million a year earlier. Provision for income taxes was $239.0 million, against $112.1 million. Source
Stock-based compensation rose sharply: Stock-based compensation in the Adjusted EBITDA reconciliation was $85.8 million, against $34.6 million a year earlier. Source

“During the second quarter 2026, we repurchased and withheld 1.1 million shares of our Class A common stock, for a total cost of $551.3 million”
AppLovin Corp., press release

Cash flow and balance sheet

Free Cash Flow reached $863 million: Net cash from operating activities was $869.0 million and Free Cash Flow was $863.3 million, against $768.1 million a year earlier. First-quarter Free Cash Flow was $1,286.7 million. Source
Cash balance rose to $3,053 million: Cash and cash equivalents were $3,053.3 million at June 30, 2026, against $2,487.1 million at December 31, 2025. Long-term debt was $3,515.1 million. Source
Receivables rose to $2,171 million: Accounts receivable, net was $2,171.0 million, up from $1,958.0 million at March 31, 2026. The six-month cash flow statement shows a $352.6 million change in accounts receivable. Source
Six-month operating cash flow rose: Six-month net cash from operating activities was $2,160.4 million, against $1,603.9 million a year earlier. Source

Share repurchases and share count

Second-quarter buybacks totaled $551 million: The company repurchased and withheld 1.1 million Class A shares for $551.3 million, against 2.2 million shares and $1.0 billion in the first quarter. Source
Six-month repurchases of $1,533 million: Six-month repurchases of common stock were $1,533.0 million, and $46.5 million was paid for withholding taxes on net share settlement. Source
Shares outstanding fell to 335 million: At the end of the second quarter there were 335 million Class A and Class B shares outstanding, against 336 million at the end of the first quarter. Source

Third-quarter guidance and basis

Third-quarter revenue range set: Revenue for the third quarter of 2026 is guided to $2,055 million to $2,085 million. Source
Adjusted EBITDA range and margin set: Adjusted EBITDA for the third quarter is guided to $1,710 million to $1,740 million, at a margin of 83 percent. Source
No GAAP guidance provided: The company has not given forward-looking GAAP equivalents for its Adjusted EBITDA guidance or its margin guidance. Source
GAAP reconciliation described as unavailable: The company says a reconciliation of the non-GAAP guidance metrics to GAAP is not available without unreasonable effort. Source
Prior-quarter guidance ranges: The prior release guided second-quarter 2026 revenue to $1,915 million to $1,945 million and Adjusted EBITDA to $1,615 million to $1,645 million, with a margin of 84 to 85 percent.

Non-GAAP measures and definitions

Adjusted EBITDA definition: Adjusted EBITDA starts from net income and adds back or removes discontinued operations, interest, other items, taxes, amortization, depreciation, and further items such as stock-based compensation. Source
Adjusted EBITDA margin definition: Adjusted EBITDA margin is Adjusted EBITDA divided by revenue for the same period. Source
Free Cash Flow definition: Free Cash Flow is operating cash flow less capital purchases and finance lease principal payments. It reflects both continuing and discontinued operations, and the company says comparability may be limited. Source

Prior-year comparison and discontinued operations

Prior-year quarter included discontinued income: The second quarter 2025 included $47.7 million of income from discontinued operations. No discontinued operations appear in the 2026 periods. Source
Prior-year six months included divestiture gain: The six months ended June 30, 2025 included a $106.2 million gain on divestiture, and the 2025 cash flow statement shows a $188.9 million goodwill impairment. Source
Six-month continuing operations income up: Six-month net income from continuing operations was $2,472.2 million, against $1,495.4 million a year earlier, up 65 percent. Source

Coming up, as management said on 5 August 2026

Webinar today at 2:00 PM PT: Management will discuss second-quarter 2026 results on a webinar on August 5, 2026, followed by a question-and-answer session. Source

Risks management discussed

Financial: The company noted that material changes to reconciling items, such as stock-based compensation, could significantly affect future GAAP results. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

AppLovin Announces Second Quarter 2026 Financial Results

PALO ALTO - August 5, 2026 - AppLovin Corporation (NASDAQ: APP) (“AppLovin”), a leading marketing platform, today announced financial results for the quarter ended June 30, 2026 and posted a financial update on its Investor Relations website located at https://investors.applovin.com.

Second Quarter 2026 Financial Highlights:

	Quarter Ended June 30,			Six Months Ended June 30,
(In millions, except percentages)	2026	2025	% Change	2026	2025	% Change
Revenue	$1,924	$1,259	53%	$3,766	$2,418	56%
Net Income	$1,267	$820	55%	$2,472	$1,396	77%
Net Income from Continuing Operations	$1,267	$772	64%	$2,472	$1,495	65%
Adjusted EBITDA	$1,614	$1,018	58%	$3,171	$1,956	62%

Additional Financial Highlights:

Net cash from operating activities was $869.0 million and Free Cash Flow was $863.3 million for the second quarter 2026.
Basic and Diluted earnings per share ("EPS") were $3.77 and $3.76, respectively, for the second quarter 2026.
During the second quarter 2026, we repurchased and withheld 1.1 million shares of our Class A common stock, for a total cost of $551.3 million. At the end of 2Q 2026, we had 335 million shares of our Class A and Class B common stock outstanding.

Third Quarter 2026 Financial Guidance Summary

	3Q26
(In millions, except percentages)	Low		High
Revenue		$2,055		$2,085
Adjusted EBITDA		1,710		1,740
Adjusted EBITDA Margin	83%		83%

Includes repurchased shares as well as withholdings upon net share settlement of vested equity awards. Total cost includes repurchase costs, including commissions, taxes, and fees, as well as cash paid in connection with tax withholding and remittance obligations upon net share settlement.

We have not provided the forward-looking GAAP equivalents for forward-looking non-GAAP metrics, specifically Adjusted EBITDA and Adjusted EBITDA margin, or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this press release.

Webcast and Conference Call

AppLovin will host a webinar today at 2:00 PM PT / 5:00 PM ET, during which management will discuss the Company’s second quarter 2026 results and provide commentary on its business performance. A question-and-answer session will follow the prepared remarks.

The webinar may be accessed on the Company’s investor relations website or via webinar registration. A replay of the webinar will also be available under the Events & Presentations section of our Investor Relations website.

About AppLovin

AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end advertising solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.

Forward Looking Statements

Forward-looking statements notice

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “going to,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include our expected financial results and guidance. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties, including changes in our plans or assumptions, which could cause actual results to differ materially from those projected. These risks include our inability to forecast our business effectively, the macroeconomic environment, fluctuations in our results of operations, our ability to execute on our operational and financial priorities, our ability to scale our business to support new customers, the competitive advertising ecosystem, and our inability to adapt to emerging technologies and business models. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP measure can be found below.

We define Adjusted EBITDA for a particular period as net income adjusted for loss (income) from discontinued operations, net of income taxes, interest expense, other (income) expense, net (excluding certain recurring items), provision for income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange gain, stock-based compensation, transaction-related expense, restructuring costs (benefits), as well as certain other items that we believe are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.

We define Free Cash Flow as net cash provided by operating activities less purchases of property and equipment and principal payments on finance leases. We subtract both purchases of property and equipment and payment of finance leases in our calculation of Free Cash Flow because we believe these items represent our ongoing requirements for property and equipment to support our business, regardless of whether we utilize a finance lease to obtain such property or equipment.

We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and operating performance, as they are similar to measures reported by our public competitors and are regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects.

Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We use Free Cash Flow in addition to GAAP measures to help manage our business and prepare budgets and annual planning, and we believe Free Cash Flow provides useful supplemental information to help investors understand underlying trends in our business and our liquidity.

These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Free Cash Flow reflects cash flows from both of continuing and discontinued operations. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

AppLovin Corporation

Consolidated Balance Sheets

(In thousands, except per share data)

	June 30, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$3,053,306	$2,487,096
Accounts receivable, net	2,171,017	1,819,366
Prepaid expenses and other current assets	167,993	124,330
Total current assets	5,392,316	4,430,792
Property and equipment, net	111,948	122,445
Goodwill	1,518,587	1,539,986
Intangible assets, net	355,661	396,714
Equity method investments	289,959	287,666
Other non-current assets	600,660	482,007
Total assets	$8,269,131	$7,259,610
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$778,942	$746,977
Accrued and other current liabilities	475,016	586,811
Total current liabilities	1,253,958	1,333,788
Long-term debt	3,515,072	3,512,987
Other non-current liabilities	337,085	278,164
Total liabilities	5,106,115	5,124,939
Stockholders’ equity:
Preferred Stock, $0.00003 par value - 100,000 shares authorized, no shares issued and outstanding as of June 30, 2026 and December 31, 2025	-	-
Class A, Class B, and Class C Common Stock, $0.00003 par value - 1,850,000 (Class A 1,500,000, Class B 200,000, Class C 150,000) shares authorized, 335,291 (Class A 305,084, Class B 30,208, Class C nil) and 338,313 (Class A 307,955, Class B 30,358, Class C nil) shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	11	11
Additional paid-in capital	575,057	446,550
Accumulated other comprehensive loss	(73,805)	(46,987)
Retained earnings	2,661,753	1,735,097
Total stockholders’ equity	3,163,016	2,134,671
Total liabilities and stockholders’ equity	$8,269,131	$7,259,610

AppLovin Corporation

Consolidated Statements of Operations

(In thousands, except per share data)

	Quarter Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Revenue	$1,923,686	$1,258,754	$3,766,135	$2,417,728
Costs and expenses:
Cost of revenue	225,801	155,076	429,433	306,756
Sales and marketing	63,394	46,917	124,145	106,300
Research and development	99,901	44,032	194,005	100,438
General and administrative	40,313	55,047	84,342	106,570
Total costs and expenses	429,409	301,072	831,925	620,064
Income from operations	1,494,277	957,682	2,934,210	1,797,664
Other income (expense):
Interest expense	(51,156)	(51,409)	(102,315)	(104,297)
Other income (expense), net	62,405	(22,269)	105,039	(14,757)
Total other income (expense), net	11,249	(73,678)	2,724	(119,054)
Income before income taxes	1,505,526	884,004	2,936,934	1,678,610
Provision for income taxes	238,988	112,148	464,783	183,216
Net income from continuing operations	1,266,538	771,856	2,472,151	1,495,394
Income (loss) from discontinued operations, net of income taxes	-	47,675	-	(99,444)
Net income	1,266,538	819,531	2,472,151	1,395,950
Net income (loss) per share attributed to Class A and Class B common stockholders - Basic:
Continuing operations	$3.77	$2.28	$7.34	$4.41
Discontinued operations	-	0.14	-	(0.30)
Basic net income per share	$3.77	$2.42	$7.34	$4.11
Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted:
Continuing operations	$3.76	$2.26	$7.32	$4.35
Discontinued operations	-	0.13	-	(0.29)
Diluted net income per share	$3.76	$2.39	$7.32	$4.06
Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders:
Basic	335,800	338,617	336,595	339,224
Diluted	337,031	342,194	337,875	343,529

AppLovin Corporation

Consolidated Statements of Cash Flows

(In thousands)

	Six Months Ended June 30,
	2026	2025
Operating Activities
Net income	$2,472,151	$1,395,950
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization, depreciation and write-offs	66,228	126,940
Goodwill impairment	-	188,943
Stock-based compensation, excluding cash-settled awards	168,981	97,026
Gain on divestiture, net of transaction costs	-	(106,229)
Other	(42,130)	41,617
Changes in operating assets and liabilities:
Accounts receivable	(352,557)	(291,551)
Prepaid expenses and other assets	(56,890)	20,691
Accounts payable	29,617	39,040
Accrued and other liabilities	(124,967)	91,511
Net cash provided by operating activities	2,160,433	1,603,938
Investing Activities
Proceeds from divestiture, net of cash divested	-	424,702
Purchase of non-marketable equity securities	-	(18,678)
Other investing activities	(7,688)	(27,140)
Net cash provided by (used in) investing activities	(7,688)	378,884
Financing Activities
Repurchases of common stock	(1,532,952)	(1,272,429)
Payment of withholding taxes related to net share settlement	(46,451)	(256,650)
Principal repayments of debt	-	(200,000)
Payments of licensed asset obligation	-	(13,532)
Proceeds from issuance of debt	-	200,000
Other financing activities	(3,248)	3,017
Net cash used in financing activities	(1,582,651)	(1,539,594)
Effect of foreign exchange rate on cash and cash equivalents	(3,884)	7,969
Net increase in cash and cash equivalents, including cash from discontinued operations	566,210	451,197
Less: net decrease in cash from discontinued operations	-	(44,381)
Net increase in cash and cash equivalents	566,210	495,578
Cash and cash equivalents at beginning of the period	2,487,096	697,030
Cash and cash equivalents at end of the period	$3,053,306	$1,192,608
Supplemental disclosure of cash flow information:
Cash paid for interest	$99,653	$99,553
Cash paid for income taxes, net of refunds	$639,820	$100,621

AppLovin Corporation

Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow

(In thousands)

The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow for the periods presented:

	Quarter Ended June 30,
	2026	2025
Net cash provided by operating activities	869,040	772,226
Less:
Purchase of property and equipment	(1,427)	(42)
Principal payments of finance leases	(4,296)	(4,121)
Free Cash Flow	$863,317	$768,063
Net cash provided by (used in) investing activities	$(2,441)	$401,548
Net cash used in financing activities	$(570,419)	$(537,377)

AppLovin Corporation

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages)

The following table provides our Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of Net Income to Adjusted EBITDA for the periods presented:

	Quarter Ended June 30,					Six Months Ended June 30,
	2026		2025			2026		2025
Revenue		$1,923,686		$1,258,754		$3,766,135		$2,417,728
Net income		1,266,538		819,531		2,472,151		1,395,950
Net margin		66%		65%			66%		58%
Loss (income) from discontinued operations, net of income taxes	-		(47,675)			-		99,444
Net income from continuing operations	1,266,538		771,856			2,472,151		1,495,394
Net margin from continuing operations		66%		61%			66%		62%
Adjusted as follows:
Interest expense	51,156		51,409			102,315		104,297
Other (income) expense, net	(59,863)		12,798			(101,223)		4,154
Provision for income taxes	238,988		112,148			464,783		183,216
Amortization, depreciation and write-offs	32,563		31,064			66,228		63,010
Non-operating foreign exchange gain	(2,364)		(1,210)			(3,630)		(1,530)
Stock-based compensation	85,783		34,552			169,252		93,667
Transaction-related expense	59		5,097			10		9,680
Restructuring costs	963		633			856		4,231
Adjusted EBITDA	$1,613,823		$1,018,347		$1,018,347	$3,170,742		$1,956,119
Adjusted EBITDA margin		84%		81%			84%		81%

Contacts
Investors David Hsiao ir@applovin.com
Press Emelyne Interior press@applovin.com
Source: AppLovin Corp.