AppLovin Announces Second Quarter 2026 Financial Results

About this update from Applovin Corporation

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 1 . 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 2     3Q26 (In millions, except percentages)   Low High Revenue   $2,055 $2,085 Adjusted EBITDA   1,710 1,740 Adjusted EBITDA Margin   83% 83% _________________________ 1 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. 2 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 . Source: AppLovin Corp. Forward Looking Statements 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) (Unaudited)       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) (Unaudited)       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) (Unaudited)       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     $ 3,170,742     $ 1,956,119   Adjusted EBITDA margin     84 %     81 %       84 %     81 %   View source version on businesswire.com: https://www.businesswire.com/news/home/20260805303503/en/

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