AppLovin — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue reached a record $2.185 billion for the quarter ended September 30, 2026, a 55% year-over-year increase compared to $1.405 billion in the prior year period.
• Net income grew 72% year-over-year to $1.439 billion, up from $836 million in the third quarter of 2025.
• Net income margin was 66% for the quarter, compared to 59% in the prior year period.
• Adjusted EBITDA increased 59% year-over-year to $1.842 billion, with an Adjusted EBITDA margin of 84% (up from 82% in the prior year).
• Basic and diluted earnings per share were $4.31 and $4.30, respectively, for the quarter.
• Net cash from operating activities and Free Cash Flow were both $1.4 billion for the third quarter.
• Cash and cash equivalents increased to $3.174 billion as of September 30, 2026, from $2.487 billion at the end of 2025.
• Long-term debt stood at $3.516 billion as of September 30, 2026, compared to $3.513 billion at the end of 2025.
• For the nine months ended September 30, 2026, revenue was $5.951 billion (up 56% year-over-year) and net income was $3.911 billion (up 75% year-over-year).

Guidance and Future Outlook:

• Guidance for the fourth quarter of 2026 projects revenue between $2.365 billion and $2.395 billion.
• Fourth quarter 2026 Adjusted EBITDA is guided to be between $1.995 billion and $2.025 billion.
• Fourth quarter 2026 Adjusted EBITDA margin is guided to be between 84% and 85%.
• Management expressed continued confidence in the Company's future.

Business Segments and Product Lines:

• No specific segment or product line performance data is provided in the press release.

Market and Competitive Landscape:

• No specific market trends, competition, or market share data is provided in the press release.

Risks and Challenges:

• Risks include the inability to forecast business effectively, macroeconomic environment fluctuations, and operational execution challenges.
• Potential variability in reconciling items such as stock-based compensation could significantly affect future GAAP results.
• Future share repurchases are subject to market conditions, legal requirements (including solvency and surplus), and capital allocation strategy.
• Forward-looking statements regarding financial results and guidance are subject to risks and uncertainties that could cause actual results to differ materially.

Management Commentary and Tone:

• Management highlighted record third-quarter earnings and industry-leading margins.
• The tone reflects strong confidence in future performance, evidenced by the increase in share repurchase authorization.

Other Key Points:

• The Board of Directors approved an increase to the share repurchase authorization by $3.2 billion, bringing the total current authorization to $3.6 billion as of the end of October.
• During the third quarter, the Company repurchased and withheld 4.1 million shares of Class A common stock for a total cost of $1.4 billion.
• Total shares outstanding were 331 million as of the end of the third quarter.
• The Company hosted a webinar on November 4, 2026, to discuss results and business performance.
• No GAAP reconciliation is provided for forward-looking non-GAAP metrics (Adjusted EBITDA and margin) due to uncertainty regarding reconciling items.