AppLovin Corp (APP): Results of Operations and Financial Condition
AppLovin Corp (APP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 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
How this was made
The 30-second read
Why it matters
Traders can update models immediately using the reported 2Q26 figures and the stated 3Q26 revenue and Adjusted EBITDA ranges, and reassess valuation versus growth and margin expectations.
Market read
A same-day earnings and guidance disclosure with cash flow and buyback details typically drives the highest near-term trading sensitivity for the issuer.
What to watch
Free cash flow is strong, but the release does not provide GAAP equivalents for guidance metrics, so investors may scrutinize reconciliation items and working-capital dynamics in the full 10-Q.
AppLovin Announces Second Quarter 2026 Financial Results
Second-quarter revenue increased 53%, net income increased 55%, Adjusted EBITDA increased 58%, and the company guided third-quarter revenue to $2,055 million to $2,085 million with an 83% Adjusted EBITDA margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, quarter ended June 30GAAP | $1,924 million | – | 53% |
| Revenue, six months ended June 30GAAP | $3,766 million | – | 56% |
| Cost of revenue, quarter ended June 30GAAP | $225,801 (in thousands) | – | – |
| Cost of revenue, six months ended June 30GAAP | $429,433 (in thousands) | – | – |
| Sales and marketing expense, quarter ended June 30GAAP | $63,394 (in thousands) | – | – |
| Sales and marketing expense, six months ended June 30GAAP | $124,145 (in thousands) | – | – |
| Research and development expense, quarter ended June 30GAAP | $99,901 (in thousands) | – | – |
| Research and development expense, six months ended June 30GAAP | $194,005 (in thousands) | – | – |
| General and administrative expense, quarter ended June 30GAAP | $40,313 (in thousands) | – | – |
| General and administrative expense, six months ended June 30GAAP | $84,342 (in thousands) | – | – |
| Total costs and expenses, quarter ended June 30GAAP | $429,409 (in thousands) | – | – |
| Total costs and expenses, six months ended June 30GAAP | $831,925 (in thousands) | – | – |
| Income from operations, quarter ended June 30GAAP | $1,494,277 (in thousands) | – | – |
| Income from operations, six months ended June 30GAAP | $2,934,210 (in thousands) | – | – |
| Interest expense, quarter ended June 30GAAP | $(51,156) (in thousands) | – | – |
| Interest expense, six months ended June 30GAAP | $(102,315) (in thousands) | – | – |
| Other income (expense), net, quarter ended June 30GAAP | $62,405 (in thousands) | – | – |
| Other income (expense), net, six months ended June 30GAAP | $105,039 (in thousands) | – | – |
| Income before income taxes, quarter ended June 30GAAP | $1,505,526 (in thousands) | – | – |
| Income before income taxes, six months ended June 30GAAP | $2,936,934 (in thousands) | – | – |
| Provision for income taxes, quarter ended June 30GAAP | $238,988 (in thousands) | – | – |
| Provision for income taxes, six months ended June 30GAAP | $464,783 (in thousands) | – | – |
| Net income from continuing operations, quarter ended June 30GAAP | $1,267 million | – | 64% |
| Net income from continuing operations, six months ended June 30GAAP | $2,472 million | – | 65% |
| Income (loss) from discontinued operations, net of income taxes, quarter ended June 30GAAP | — | – | – |
| Income (loss) from discontinued operations, net of income taxes, six months ended June 30GAAP | — | – | – |
| Net income, quarter ended June 30GAAP | $1,267 million | – | 55% |
| Net income, six months ended June 30GAAP | $2,472 million | – | 77% |
| Basic earnings per share, quarter ended June 30GAAP | $3.77 | – | – |
| Diluted earnings per share, quarter ended June 30GAAP | $3.76 | – | – |
| Adjusted EBITDA, quarter ended June 30non-GAAP | $1,614 million | – | 58% |
| Adjusted EBITDA, six months ended June 30non-GAAP | $3,171 million | – | 62% |
| Net cash from operating activities, second quarter 2026GAAP | $869.0 million | – | – |
| Free Cash Flow, second quarter 2026non-GAAP | $863.3 million | – | – |
3Q26 outlook
- Revenue$2,055 million to $2,085 million
- NoteAdjusted EBITDA: $1,710 million to $1,740 million
- NoteAdjusted EBITDA Margin: 83% to 83%
Capital returns
- During the second quarter 2026, the company repurchased and withheld 1.1 million shares of its Class A common stock for a total cost of $551.3 million.
- At the end of 2Q 2026, the company had 335 million shares of its Class A and Class B common stock outstanding.
What drove it
- Revenue was $1,924 million for the quarter ended June 30, 2026, up 53% from $1,259 million in the prior-year quarter.
- Adjusted EBITDA was $1,614 million for the quarter ended June 30, 2026, up 58% from $1,018 million in the prior-year quarter.
- Net income from continuing operations was $1,267 million for the quarter ended June 30, 2026, up 64% from $772 million in the prior-year quarter.
- Other income (expense), net was $62,405 (in thousands) in the quarter ended June 30, 2026, compared with $(22,269) (in thousands) in the prior-year quarter.
Concerns
- The company cited risks including its inability to forecast its business effectively, the macroeconomic environment, fluctuations in results of operations, the competitive advertising ecosystem, and an inability to adapt to emerging technologies and business models.
- The company did not provide forward-looking GAAP equivalents or a GAAP reconciliation for Adjusted EBITDA and Adjusted EBITDA margin guidance because of uncertainty and potential variability in reconciling items, including stock-based compensation expense.
- Long-term debt was $3,515,072 (in thousands) as of June 30, 2026.
What to watch
- Third-quarter 2026 revenue guidance of $2,055 million to $2,085 million.
- Third-quarter 2026 Adjusted EBITDA guidance of $1,710 million to $1,740 million and Adjusted EBITDA margin guidance of 83% to 83%.
- Free Cash Flow and net cash from operating activities following second-quarter figures of $863.3 million and $869.0 million, respectively.
- Further Class A common-stock repurchases and withholdings after $551.3 million of total second-quarter cost.
Balance sheet and cash flow
- Cash and cash equivalents were $3,053,306 (in thousands) as of June 30, 2026, compared with $2,487,096 (in thousands) as of December 31, 2025.
- Accounts receivable, net were $2,171,017 (in thousands) as of June 30, 2026, compared with $1,819,366 (in thousands) as of December 31, 2025.
- Total current assets were $5,392,316 (in thousands) as of June 30, 2026, compared with $4,430,792 (in thousands) as of December 31, 2025.
- Total assets were $8,269,131 (in thousands) as of June 30, 2026, compared with $7,259,610 (in thousands) as of December 31, 2025.
- Long-term debt was $3,515,072 (in thousands) as of June 30, 2026, compared with $3,512,987 (in thousands) as of December 31, 2025.
- Total liabilities were $5,106,115 (in thousands) as of June 30, 2026, compared with $5,124,939 (in thousands) as of December 31, 2025.
- Total stockholders' equity was $3,163,016 (in thousands) as of June 30, 2026, compared with $2,134,671 (in thousands) as of December 31, 2025.
- Net cash from operating activities was $869.0 million and Free Cash Flow was $863.3 million for the second quarter 2026.
Analysis
AppLovin reported a strong second quarter, with revenue of $1,924 million, up 53% from $1,259 million in the prior-year quarter. First-half revenue was $3,766 million, up 56% from $2,418 million. The filing did not provide segment revenue disclosure or management commentary identifying product, customer, geographic, or platform-specific sources of growth.
Profitability also increased substantially. Net income was $1,267 million, up 55%, while net income from continuing operations was $1,267 million, up 64%. Income from operations was $1,494,277 (in thousands), compared with $957,682 (in thousands) in the prior-year quarter. Adjusted EBITDA, a non-GAAP measure, was $1,614 million, up 58% from $1,018 million.
Expense lines rose in absolute dollars, including cost of revenue of $225,801 (in thousands), sales and marketing expense of $63,394 (in thousands), and research and development expense of $99,901 (in thousands). General and administrative expense was $40,313 (in thousands), down from $55,047 (in thousands). Other income (expense), net was positive at $62,405 (in thousands), compared with an expense of $(22,269) (in thousands) a year earlier, while interest expense was $(51,156) (in thousands).
Cash generation was material, with net cash from operating activities of $869.0 million and Free Cash Flow of $863.3 million. The company spent $551.3 million to repurchase and withhold 1.1 million Class A shares during the quarter. Cash and cash equivalents were $3,053,306 (in thousands) at June 30, 2026, while long-term debt was $3,515,072 (in thousands).
For 3Q26, AppLovin guided revenue to $2,055 million to $2,085 million and Adjusted EBITDA to $1,710 million to $1,740 million. It also guided Adjusted EBITDA margin to 83% at both the low and high ends of the range. The company did not provide forward-looking GAAP equivalents for its non-GAAP Adjusted EBITDA guidance.
Not in the filing
stated, not guessed- Segment revenue, segment growth rates, and segment drivers were not provided in the filing text.
- Gross profit and gross margin were not reported.
- Current-quarter Adjusted EBITDA margin was not reported.
- Prior-year and prior-quarter basic and diluted EPS were not provided in the filing text.
- Prior-quarter comparisons for reported income-statement and cash-flow metrics were not provided.
- Prior-year comparisons for net cash from operating activities and Free Cash Flow were not provided.
- A forward gross-margin, operating-expense, tax-rate, EPS, GAAP net-income, cash-flow, and capital-return outlook was not provided.
- Prior-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Named executive commentary and executive quotes were not provided in the filing text.
- Dividend information was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is AppLovin’s SEC 8-K filing for 2Q26 results (Exhibit 99.1) including financial highlights, cash flow, share repurchases, and 3Q26 guidance.
Ticker impact
AppLovin reported 2Q26 revenue of $1.924B (+53% YoY) and guided 3Q26 revenue to $2.055B-$2.085B with Adjusted EBITDA $1.710B-$1.740B.
Likely positive bias if guidance and margins are viewed as durable; magnitude depends on how the market compares the ranges to consensus.
The article includes both historical results (revenue, net income, FCF) and explicit 3Q26 guidance ranges for revenue and Adjusted EBITDA, which are direct inputs to earnings-model updates.
Market effects
Reinforces demand and monetization strength in mobile/online advertising software, potentially supporting sentiment for ad-tech peers.
Primarily US-listed growth/tech sentiment; limited direct regional spillover beyond ad-tech complex.
Global ad-spend and marketing-platform performance signal may influence broader ad-tech risk appetite.
Counterpoint
Adjusted EBITDA and margin are non-GAAP; if investors focus on GAAP profitability quality or stock-based compensation, the guidance could be discounted.
Key entities
- companyAppLovin Corporation
Marketing platform company filing 8-K with 2Q26 results and 3Q26 guidance.
- securityNASDAQ: APP
AppLovin’s listed equity referenced in the filing.
