AppLovin Corporation (APP) Q1 2026 Financial Results Summary

PALO ALTO – May 6, 2026 – AppLovin Corporation (NASDAQ: APP) announced its financial results for the quarter ended March 31, 2026. Below is a summary of the key metrics and highlights from the report.

Financial Highlights:

• Revenue:
  • Q1 2026: $1,842 million
  • Q1 2025: $1,159 million
  • Percentage Change: +59%
• Net Income:
  • Q1 2026: $1,206 million
  • Q1 2025: $576 million
  • Percentage Change: +109%
• Net Income from Continuing Operations:
  • Q1 2026: $1,206 million
  • Q1 2025: $724 million
  • Percentage Change: +67%
• Adjusted EBITDA:
  • Q1 2026: $1,557 million
  • Q1 2025: $938 million
  • Percentage Change: +66%

Additional Financial Metrics:

• Net Cash from Operating Activities: $1.3 billion
• Free Cash Flow: $1.3 billion
• Basic Earnings per Share (EPS): $3.57
• Diluted EPS: $3.56

Share Repurchase Program:

AppLovin repurchased 2.2 million shares of its Class A common stock during Q1 2026, with a total cost of $1 billion.

Financial Position Overview:

• Current Assets:
  • As of March 31, 2026: $4,848 million
  • As of December 31, 2025: $4,431 million
• Total Assets:
  • As of March 31, 2026: $7,708 million
  • As of December 31, 2025: $7,260 million
• Total Liabilities:
  • As of March 31, 2026: $5,344 million
  • As of December 31, 2025: $5,125 million
• Stockholders’ Equity:
  • As of March 31, 2026: $2,363 million
  • As of December 31, 2025: $2,135 million

Cost Breakdown:

• Cost of Revenue:
  • Q1 2026: $204 million
  • Q1 2025: $152 million
  • Percentage Change: +34%
• Sales and Marketing:
  • Q1 2026: $61 million
  • Q1 2025: $59 million
  • Percentage Change: +2.2%
• Research and Development:
  • Q1 2026: $94 million
  • Q1 2025: $56 million
  • Percentage Change: +67%
• General and Administrative:
  • Q1 2026: $44 million
  • Q1 2025: $52 million
  • Percentage Change: -15%

Income Analysis:

• Income from Operations:
  • Q1 2026: $1,440 million
  • Q1 2025: $840 million
  • Percentage Change: +71%
• Net Margin:
  • Q1 2026: 65%
  • Q1 2025: 50%

Future Guidance for Q2 2026:

• Revenue Guidance:
  • Estimated range: $1,915 million to $1,945 million
• Adjusted EBITDA Guidance:
  • Estimated range: $1,615 million to $1,645 million
  • Adjusted EBITDA Margin: Estimated to be between 84% and 85%

Conclusion:

AppLovin has demonstrated strong financial growth in Q1 2026 compared to the same quarter last year, achieving significant increases in revenue, net income, and adjusted EBITDA. The company's aggressive share repurchase strategy reflects confidence in its financial performance, although it has not declared a quarterly dividend. The anticipated guidance for Q2 2026 continues to suggest positive momentum moving forward.

Note: The amounts in the following tables are in thousands.

Consolidated Statements of Operations	Quarter Ended March 31, 2026	2025
Revenue	$1,842,449	$1,158,974
Costs and expenses:
Cost of revenue	203,632	151,680
Sales and marketing	60,751	59,383
Research and development	94,104	56,406
General and administrative	44,029	51,523
Total costs and expenses	402,516	318,992
Income from operations	1,439,933	839,982
Other income (expense):
Interest expense	-51,159	-52,888
Other income, net	42,634	7,512
Total other expense, net	-8,525	-45,376
Income before income taxes	1,431,408	794,606
Provision for income taxes	225,795	71,068
Net income from continuing operations	1,205,613	723,538
Loss from discontinued operations, net of income taxes	—	-147,119
Net income	1,205,613	576,419
Net income (loss) per share attributed to Class A and Class B common stockholders - Basic:
Continuing operations	$3.57	$2.13
Discontinued operations	—	-0.43
Basic net income per share	$3.57	$1.70
Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted:
Continuing operations	$3.56	$2.10
Discontinued operations	—	-0.43
Diluted net income per share	$3.56	$1.67
Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders:
Basic	337,399	339,837
Diluted	338,729	344,878

Consolidated Balance Sheets	March 31, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$2,758,671	$2,487,096
Accounts receivable, net	1,958,023	1,819,366
Prepaid expenses and other current assets	130,881	124,330
Total current assets	4,847,575	4,430,792
Property and equipment, net	114,820	122,445
Goodwill	1,523,050	1,539,986
Intangible assets, net	368,996	396,714
Equity method investments	288,669	287,666
Other non-current assets	564,595	482,007
Total assets	$7,707,705	$7,259,610
Liabilities and Stockholders’ Equity		Disclaimer The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.