AppLovin — 2026Q3 earnings

“today announced financial results for the quarter ended June 30, 2026”

“Basic and Diluted earnings per share ("EPS") were $3.77 and $3.76, respectively, for the second quarter 2026.”

“Net cash from operating activities was $869.0 million and Free Cash Flow was $863.3 million 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”

“This quarter, we delivered almost $2 billion in revenue, which was just below the midpoint of our guidance range, and our Adjusted EBITDA was just below the range. We’ve always managed this business with the goal of outperforming our own expectations. And this quarter, we fell short of that standard.”

“we still delivered second quarter revenue of $1.92 billion – growing 53% year-over-year and 4% sequentially – driven by the core gaming business and continued scaling in the consumer vertical.”

“This quarter came down to timing. Our pace of meaningful model improvement was lighter than normal during the quarter and the next step-up in model performance landed just after quarter end.”

“Importantly, nothing we saw suggested weakening advertiser demand or a change in the competitive environment. In fact, Max publisher earnings grew double digits quarter-over-quarter, and our share of publisher waterfalls remained consistent.”

“With those improvements now live and heading into what is a seasonally stronger part of the year, the business is reaccelerating.”

“Now on EBITDA: Adjusted EBITDA grew to a bit over $1.6 billion, up more than 50% year-over-year. While this result lands just below our guidance range, the incremental investments were exactly where we believe they should be: in our technology.”

“Free cash flow for the quarter was $863 million. As I previewed on last quarter’s call, conversion was below our normal cadence in the second quarter due to the timing of international cash tax and interest payments. This is a timing dynamic, not a change in the earnings power of our business. We expect free cash flow conversion to improve in the third quarter and to normalize to roughly 75% of Adjusted EBITDA for the full year.”

“Our choice to moderate the pace of our buybacks this quarter relative to the roughly $1 billion we deployed in the first quarter reflects consideration of our lower free cash flow during the quarter and does not indicate a change in conviction or in how we intend to use the authorization going forward.”

“Now, let me talk about consumer, which had an outstanding quarter. Advertiser spend set another record, finishing 28% above Q4 2025 levels. And remember, Q4 is the seasonal peak for these advertisers.”

“We expect revenue between $2.055 billion and $2.085 billion, representing 46% to 48% year-over-year growth, or 7% to 8% sequentially.”

“That outlook reflects the model improvements that are already live and performing, continued scaling in our consumer vertical, normal seasonality, and the higher training and compute costs I mentioned. It does not assume additional model releases that have not yet been deployed.”

“We continue to get questions on the reported SEC inquiry, so let me close the loop. It was a voluntary request, which we never deemed material. The SEC has recently advised us that it concluded its inquiry with no recommended action. We’re pleased to have it resolved.”