AppLovin (APP) Q2 2026: Revenue Growth of $665M or +53% YoY — Strong Performance

AppLovin Corporation (NASDAQ: APP) reported impressive financial results for the second quarter of 2026, showcasing a significant year-over-year revenue increase. The company achieved revenue of $1,923 million, which represents a growth of $665 million or +53% compared to the $1,258 million reported in the same quarter of 2025.

This quarter's performance is undoubtedly positive for shareholders, as the substantial revenue growth indicates strong demand for AppLovin's marketing platform and advertising solutions. The increase in revenue is a clear signal of the company's ability to capture market share and expand its customer base effectively.

Key Financial Metrics:

• Revenue: $1,923 million, up $665 million or +53% YoY from $1,258 million.
• Net Income: $1,266 million, compared to $819 million in Q2 2025, reflecting an increase of $447 million or +55%.
• Basic EPS: $3.77, up from $2.42 in the prior year, representing a growth of $1.35 or +56%.
• Diluted EPS: $3.76, compared to $2.39 in Q2 2025, an increase of $1.37 or +57%.
• Free Cash Flow: $863.3 million, up from $768.1 million in Q2 2025, an increase of $95.2 million or +12%.

Shareholder Returns and Guidance:

During the second quarter, AppLovin repurchased and withheld 1.1 million shares of its Class A common stock at a total cost of $551.3 million. This move reflects the company's commitment to returning value to shareholders and managing its capital structure effectively.

Looking ahead, AppLovin provided guidance for the third quarter of 2026, projecting revenue between $2,055 million and $2,085 million, with Adjusted EBITDA expected to range from $1,710 million to $1,740 million. The Adjusted EBITDA margin is anticipated to remain stable at 83%.

Analyst Opinion:

The results from Q2 2026 are a strong indicator of AppLovin's operational efficiency and market position. The significant revenue and earnings growth, coupled with robust free cash flow, suggest that the company is well-positioned for continued success. The share repurchase program further enhances shareholder value, indicating management's confidence in the company's future prospects.

Forward-Looking Catalysts:

Investors should closely monitor AppLovin's performance in the upcoming quarter, particularly the execution of its growth strategies and the realization of projected revenue and EBITDA targets. Additionally, any updates on new product offerings or market expansions could serve as catalysts for further stock appreciation.

In summary, AppLovin's Q2 2026 results reflect a strong operational performance, making it a favorable outlook for shareholders as the company continues to capitalize on growth opportunities in the marketing technology space.

Here are the extracted tables from the press release:

Note: All amounts in the tables are in thousands.

Consolidated Statements of Operations

(In thousands, except per share data)

	Quarter Ended June 30, 2026	Quarter Ended June 30, 2025	Six Months Ended June 30, 2026	Six Months Ended June 30, 2025
Revenue	$1,923,000	$1,258,000	$3,766,000	$2,417,700
Cost of revenues	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 admin	40,313	55,047	84,342	106,570
Total costs and expenses	429,409	301,072	831,925	620,064
Income from operations	1,494,000	957,682	2,934,000	1,797,600
Other income (expense)	-51,156	-51,409	-102,300	-104,297
Other income	62,405	-22,269	105,039	-14,757
Total other income	11,249	-73,678	2,724	-119,054
Income before income taxes	1,505,000	884,004	2,936,000	1,678,600
Provision for income taxes	238,988	112,148	464,783	183,216
Net income from continuing operations	1,266,000	771,856	2,472,000	1,495,300
Income (loss) from discontinued operations	—	47,675	—	-99,444
Net income	1,266,000	819,531	2,472,000	1,395,900
Net income (loss) per share
Basic: Continuing operations	$3.77	$2.28	$7.34	$4.41
Net income	$3.77	$2.42	$7.34	$4.11
Diluted: Continuing operations	$3.76	$2.26	$7.32	$4.35
Net income	$3.76	$2.39	$7.32	$4.06
Weighted-average shares used to compute net income per share, basic	335,800	338,617	336,595	339,224
Diluted	337,031	342,194	337,875	343,529

Consolidated Balance Sheets

(In thousands, except per share data)

Assets	June 30, 2026	December 31, 2025
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
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	—	—
Class A, Class B, and Class C Common Stock	335,291	338,313
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

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