Summary
AppLovin Corporation (APP) reported robust financial performance for the quarter ended March 31, 2026. Revenue surged by 59% year-over-year to $1.84 billion, driven by strong growth in its Axon Ads Manager solution, which saw a 93% increase in net revenue per installation. Net income more than doubled to $1.21 billion, resulting in diluted earnings per share of $3.56. The company maintained strong profitability with a net income margin of 65.4% and a substantial Adjusted EBITDA margin of 84.5%. Significant free cash flow generation of $1.29 billion highlights operational efficiency. AppLovin also continued its aggressive capital return program, repurchasing $1 billion of its Class A common stock during the quarter, underscoring its commitment to shareholder value. The company ended the quarter with a strong cash position of $2.76 billion, providing ample liquidity for future operations and investments. Operationally, AppLovin's strategic focus on its advertising business appears to be paying off, as evidenced by the significant revenue and profit growth. The divestiture of its non-core Apps Business in the prior year has allowed for a clearer focus on its core advertising solutions. While the company faces ongoing risks related to platform changes, competition, and regulatory environments, the current financial results demonstrate resilience and strong execution. Investors should note the substantial share repurchase activity and the company's continued investment in innovation, particularly in AI, as key drivers for future growth.
Financial Highlights
46 data points| Revenue | $1.84B |
| Cost of Revenue | $203.63M |
| Gross Profit | $1.64B |
| R&D Expenses | $94.10M |
| Operating Expenses | $402.52M |
| Operating Income | $1.44B |
| Net Income | $1.21B |
| EPS (Basic) | $3.57 |
| EPS (Diluted) | $3.56 |
| Shares Outstanding (Basic) | 337.40M |
| Shares Outstanding (Diluted) | 338.73M |
Key Highlights
- 1Revenue increased significantly by 59% year-over-year to $1.84 billion.
- 2Net income more than doubled to $1.21 billion, with diluted EPS of $3.56.
- 3Axon Ads Manager showed substantial growth with a 93% increase in net revenue per installation.
- 4Adjusted EBITDA margin remained exceptionally strong at 84.5%.
- 5Free cash flow generation was robust at $1.29 billion.
- 6The company repurchased $1 billion of Class A common stock during the quarter, indicating a strong commitment to returning capital to shareholders.
- 7Ending cash and cash equivalents stood at $2.76 billion, providing a healthy liquidity position.