"$, AppLovin
Financial Update
3Q26
Financial Overview
Revenue
($ millions)
$576
$678 $711 $835
$999
$1,159 $1,259
$1,405
$1,658
$1,842 $1,924
$2,185
Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126 Q226 Q326
3Q26: $2.18 billion (+55% Y/Y)
Net Income from Continuing Operations
($ millions)
Net Income from Continuing Operations Margin
52%
60% 62% 61% 59%
$1,102
$1,206 $1,267
$1,439
33% 38% 42%
$188 $259 $301
$433
$596 $724 $772 $836
66%
65%
66%
66%
Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126 Q226 Q326
Adjusted EBITDA
($ millions) Adjusted EBITDA Margin
3Q26: $1.44 billion (+72% Y/Y), a net margin of 66%
81% 81% 82% 84% 85% 84%
77% 77%
$1,842
71% 71% 72%
$411 $484 $511
$647
$770
$938
$1,158
$1,018
$1,399
$1,557
$1,614
84%
Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126 Q226 Q326
3Q26: $1.84 billion (+59% Y/Y), an 84% margin
Cash Flow from Operations and Shares Outstanding
($ and shares in millions) Cash Flow from Operations Ending Shares Outstanding
$1,314 $1,291
$1,429
340
334 335
340 338 339
$1,053
$869
329
$393
$455
$344
$551
$701
$832
$772
339
338
336
335
331
Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126 Q226 Q326
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Please see "Non-GAAP Financial Measures" and the reconciliation from GAAP to non-GAAP measures later in this update.
AppLovin Corporation / 3Q26 Financial Update 2
Non-GAAP Financial MeasuresTo supplement our financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP"), this financial update includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA and Adjusted EBITDA margin. 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 (benefit from) income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange (gain) loss, stock-based compensation, transaction-related expense and other, restructuring costs (benefits), as we believe these items are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.
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.
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. 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 CorporationConsolidated Balance Sheets
(In thousands, except per share data) (Unaudited)
September 30, December 31,
2026 2025
Assets
Current assets:
Cash and cash equivalents | $ 3,173,731 | $ 2,487,096 |
Accounts receivable, net | 2,388,782 | 1,819,366 |
Prepaid expenses and other current assets | 141,842 | 124,330 |
Total current assets | 5,704,355 | 4,430,792 |
Property and equipment, net | 113,342 | 122,445 |
Goodwill | 1,516,423 | 1,539,986 |
Intangible assets, net | 336,185 | 396,714 |
Equity method investments | 298,333 | 287,666 |
Other non-current assets | 614,111 | 482,007 |
Total assets $ 8,582,749 $ 7,259,610 | ||
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable | $ 838,172 | $ 746,977 |
Accrued and other current liabilities | 661,182 | 586,811 |
Total current liabilities | 1,499,354 | 1,333,788 |
Long-term debt | 3,516,136 | 3,512,987 |
Other non-current liabilities | 268,557 | 278,164 |
Total liabilities | 5,284,047 | 5,124,939 |
Stockholders' equity: | ||
Preferred Stock, $0.00003 par value-100,000 shares authorized, no shares issued and outstanding as of September 30, 2026 and December 31, 2025 - - | ||
September 30, 2026 and December 31, 2025, respectively | 11 | 11 |
Additional paid-in capital | 649,790 | 446,550 |
Accumulated other comprehensive loss | (76,530) | (46,987) |
Retained earnings | 2,725,431 | 1,735,097 |
Total stockholders' equity | 3,298,702 | 2,134,671 |
Total liabilities and stockholders' equity | $ 8,582,749 | $ 7,259,610 |
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, 331,322 (Class A 301,258, Class B 30,064, Class C nil) and 338,313 (Class A 307,955, Class B 30,358, Class C nil) shares issued and outstanding as of
AppLovin Corporation Consolidated Statements of Operations(In thousands, except per share data) (Unaudited)
Quarter Ended Nine Months Ended September 30, September 30, | ||||
2026 | 2025 | 2026 | 2025 | |
Revenue | $ 2,184,815 | $ 1,405,045 | $ 5,950,950 | $ 3,822,773 |
Costs and expenses: | ||||
Cost of revenue | 240,765 | 174,855 | 670,198 | 481,611 |
Sales and marketing | 68,803 | 48,575 | 192,948 | 154,875 |
Research and development | 101,817 | 43,852 | 295,822 | 144,290 |
General and administrative | 64,462 | 58,756 | 148,804 | 165,326 |
Total costs and expenses | 475,847 | 326,038 | 1,307,772 | 946,102 |
Income from operations 1,708,968 | 1,079,007 | 4,643,178 | 2,876,671 | |
Other income (expense): | ||||
Interest expense | (51,066) | (51,429) | (153,381) | (155,726) |
Other income (expense), net | 86,032 | (6,632) | 191,071 | (21,389) |
Total other income (expense), net | 34,966 | (58,061) | 37,690 | (177,115) |
Income before income taxes | 1,743,934 | 1,020,946 | 4,680,868 | 2,699,556 |
Provision for income taxes | 305,032 | 185,401 | 769,815 | 368,617 |
Net income from continuing operations | 1,438,902 | 835,545 | 3,911,053 | 2,330,939 |
Loss from discontinued operations, net of income | ||||
taxes | - | - | - | (99,444) |
Net income | $ 1,438,902 | $ 835,545 | $ 3,911,053 | $ 2,231,495 |
Net income (loss) per share attributed to Class A and Class B common stockholders - Basic:
Continuing operations | $ 4.31 | $ 2.47 | $ 11.65 | $ 6.87 |
Discontinued operations | - | - | - | (0.29) |
Basic net income per share | $ 4.31 | $ 2.47 | $ 11.65 | $ 6.58 |
Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted: | ||||
Continuing operations | $ 4.30 | $ 2.45 | $ 11.61 | $ 6.80 |
Discontinued operations | - | - | - | (0.29) |
Diluted net income per share | $ 4.30 | $ 2.45 | $ 11.61 | $ 6.51 |
Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders:
Basic | 333,628 | 338,531 | 335,595 | 338,990 |
Diluted | 334,769 | 340,974 | 336,829 | 342,668 |
(In thousands) (Unaudited)
Nine Months Ended September 30, | ||
2026 | 2025 | |
Operating Activities | ||
Net income | $ 3,911,053 | $ 2,231,495 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization, depreciation and write-offs | 100,418 | 162,042 |
Goodwill impairment | - | 188,943 |
Stock-based compensation, excluding cash-settled awards | 253,138 | 130,167 |
Gain on divestiture, net of transaction costs | - | (106,229) |
Other | (91,330) | 80,887 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (571,015) | (326,747) |
Prepaid expenses and other assets | 2,671 | 84,474 |
Accounts payable | 88,410 | 2,069 |
Accrued and other liabilities | (104,070) | 210,259 |
Net cash provided by operating activities | 3,589,275 | 2,657,360 |
Investing Activities | ||
Proceeds from divestiture, net of cash divested | - | 407,297 |
Purchase of non-marketable equity securities | - | (20,178) |
Other investing activities | (25,375) | (27,863) |
Net cash provided by (used in) investing activities | (25,375) | 359,256 |
Financing Activities | ||
Repurchases of common stock | (2,811,222) | (1,774,329) |
Payment of withholding taxes related to net share settlement | (55,818) | (316,882) |
Principal repayments of debt | - | (200,000) |
Payments of licensed asset obligation | - | (13,532) |
Proceeds from issuance of debt | - | 200,000 |
Other financing activities | (5,913) | 4,889 |
Net cash used in financing activities | (2,872,953) | (2,099,854) |
Effect of foreign exchange rate on cash and cash equivalents Net increase in cash and cash equivalents, including cash from discontinued | (4,312) | 8,726 |
operations Less: net decrease in cash from discontinued operations | 686,635 - | 925,488 (44,381) |
Net increase in cash and cash equivalents | 686,635 | 969,869 |
Cash and cash equivalents at beginning of the period | 2,487,096 | 697,030 |
Cash and cash equivalents at end of the period | $ 3,173,731 | $ 1,666,899 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 100,834 | $ 101,023 |
Cash paid for income taxes, net of refunds | $ 926,151 | $ 167,291 |
(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 | |||||||||||||||||
4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 | ||||||
Revenue | $ 576,489 | $ 678,370 | $ 711,015 | $ 835,186 | $ 999,487 | $ 1,158,974 | $ 1,258,754 | $ 1,405,045 | $ 1,657,944 | $ 1,842,449 | $ 1,923,686 | $ 2,184,815 | |||||
Net income | 172,233 | 236,183 | 309,969 | 434,420 | 599,204 | 576,419 | 819,531 | 835,545 | 1,102,256 | 1,205,613 | 1,266,538 | 1,438,902 | |||||
Net margin | 30% | 35% | 44% | 52% | 60% | 50% | 65% | 59% | 66% | 65% | 66% | 66% | |||||
Loss (income) from discontinued operations, net of | 16,229 | 23,174 | (8,987) | (1,347) | (3,092) | 147,119 | (47,675) | - | - | - | - | - | |||||
income taxes | |||||||||||||||||
Net income from continuing operations | 188,462 | 259,357 | 300,982 | 433,073 | 596,112 | 723,538 | 771,856 | 835,545 | 1,102,256 | 1,205,613 | 1,266,538 | 1,438,902 | |||||
Net margin from continuing operations | 33% | 38% | 42% | 52% | 60% | 62% | 61% | 59% | 66% | 65% | 66% | 66% | |||||
Adjusted as follows: | |||||||||||||||||
Interest expense | 71,042 | 73,925 | 74,418 | 74,937 | 93,929 | 52,888 | 51,409 | 51,429 | 51,290 | 51,159 | 51,156 | 51,066 | |||||
Other (income) expense, net | 19,398 | (3,014) | (8,763) | (3,778) | (7,841) | (8,644) | 12,798 | 9,079 | (28,927) | (41,360) | (59,863) | (84,501) | |||||
Provision for (benefit from) income taxes | 19,860 | 32,253 | 16,894 | 34,656 | (61,384) | 71,068 | 112,148 | 185,401 | 151,098 | 225,795 | 238,988 | 305,032 | |||||
Amortization, depreciation and write-offs | 31,323 | 30,917 | 31,242 | 32,369 | 34,263 | 31,946 | 31,064 | 34,978 | 32,736 | 33,665 | 32,563 | 34,190 | |||||
Non-operating foreign exchange (gain) loss | (1,408) | 999 | 412 | (2,479) | 2,710 | (320) | (1,210) | (570) | (1,849) | (1,266) | (2,364) | (2,055) | |||||
Stock-based compensation | 81,933 | 88,944 | 93,559 | 77,402 | 97,526 | 59,115 | 34,552 | 33,767 | 80,524 | 83,469 | 85,783 | 84,165 | |||||
Transaction-related expense and other1 | 52 | 369 | 485 | 26 | 5 | 4,583 | 5,097 | 6,565 | 11,334 | (49) | 59 | 15,477 | |||||
Restructuring costs (benefits)1 | - | - | 1,936 | 811 | 14,512 | 3,598 | 633 | 1,460 | 217 | (107) | 963 | (46) | |||||
Total adjustments | 222,200 | 224,393 | 210,183 | 213,944 | 173,720 | 214,234 | 246,491 | 322,109 | 296,423 | 351,306 | 347,285 | 403,328 | |||||
Adjusted EBITDA | $ 410,662 | $ 483,750 | $ 511,165 | $ 647,017 | $ 769,832 | $ 937,772 | $ 1,018,347 | $ 1,157,654 | $ 1,398,679 | $ 1,556,919 | $ 1,613,823 | $ 1,842,230 | |||||
Adjusted EBITDA margin | 71% | 71% | 72% | 77% | 77% | 81% | 81% | 82% | 84% | 85% | 84% | 84% | |||||
1 Negative amount reflects a reversal of amounts expensed in prior periods | |||||||||||||||||