How strong was AppLovin's Q2 2026 growth compared with prior periods?

Revenue grew 53% YoY to $1.92 billion, and Adjusted EBITDA grew 58% to $1.61 billion. Operating income rose about 56% to $1.49 billion. Growth in the first half was similar, with revenue up 56% and continuing-operations net income up 65%, indicating sustained momentum rather than a one-quarter spike.

What is the quality of the Q2 earnings beat, given non-operating items?

Net income benefited from $62 million of other income, net, in Q2 2026, compared with a $22 million expense a year earlier. Operating income of $1.49 billion is the cleaner measure of core performance. The effective tax rate increased to about 15.9% from about 12.7%, which reduced the bottom-line benefit. Q2 2025 net income also included $48 million from discontinued operations, so the year-over-year net income comparison is distorted to some extent.

What does the Q3 2026 guidance imply for investors?

The guidance midpoint of $2.07 billion in revenue implies roughly 8% sequential growth from Q2 and about 22% year-over-year growth versus Q3 2025 if that base is comparable. Adjusted EBITDA guidance of $1.71–$1.74 billion implies an 83% margin, slightly below Q2's 84%. Because the company does not provide GAAP reconciliations for forward Adjusted EBITDA, investors should weigh stock-based compensation and other reconciling items when comparing to GAAP results.

How is AppLovin deploying its cash, and what is the balance sheet position?

Cash and equivalents increased to $3.05 billion from $2.49 billion at year-end 2025. Long-term debt was roughly flat at $3.52 billion. The company spent about $1.53 billion on share repurchases in the first half and reduced its share count to 335 million. Free Cash Flow of $863 million in Q2 covered a substantial portion of that return activity. Investors should note that the company's cash taxes increased sharply, which may reduce the pace of future free cash flow relative to earnings.

Are there any risks or disclosure caveats in this filing?

The release includes forward-looking statements subject to macroeconomic, competitive, and technology risks, and refers to the Q1 2026 10-Q and forthcoming Q2 10-Q for full risk disclosure. Adjusted EBITDA and Free Cash Flow are non-GAAP measures, and management acknowledges that they may not be comparable with other companies' metrics. Because the 8-K furnishes the release under Item 2.02, it is not deemed filed for Section 18 liability purposes. Investors should review the full 10-Q for details on tax, R&D, and operating-expense trends.

APP 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.

AppLovin (APP) reported strong second-quarter 2026 results, with revenue of $1.92 billion^a, up 53% year over year from $1.26 billion, and net income of $1.27 billion, up 55%.

Adjusted EBITDA rose 58% to $1.61 billion^b, and the Adjusted EBITDA margin was 84%, up from 81% a year earlier. Operating income reached $1.49 billion versus $958 million, and basic and diluted EPS were $3.77 and $3.76. For the first half of 2026, revenue grew 56% to $3.77 billion and net income from continuing operations grew 65% to $2.47 billion.

Growth was strong at both the top and bottom lines, though part of the Q2 earnings uplift came from $62 million^c of other income, net, and the effective tax rate rose to about 16% from about 13%. Cash generation remained robust. Operating cash flow was $869 million and Free Cash Flow was $863 million in the quarter.

Cash and equivalents rose to $3.05 billion^d against $3.52 billion of long-term debt. Management repurchased and withheld 1.1 million shares for $551 million in Q2, and shares outstanding fell to 335 million from 338 million at year-end 2025. Cash income taxes paid rose sharply to $640 million in the first half from $101 million, a meaningful headwind to cash conversion that investors should monitor.

R&D expense more than doubled year over year to $100 million, while G&A declined. For Q3 2026, AppLovin guided to revenue of $2.055 to $2.085 billion and Adjusted EBITDA of $1.710 to $1.740 billion, implying an 83% Adjusted EBITDA margin. The guidance midpoint implies roughly 8% sequential revenue growth.

The company did not provide GAAP reconciliations for forward Adjusted EBITDA, citing variability in stock-based compensation. The results are presented under Item 2.02 and furnished, not filed, under Section 18 of the Exchange Act.

02—Key points

Key Highlights

Q2 2026 revenue of $1,924M grew 53% YoY; first-half revenue of $3,766M grew 56%.
Q2 Adjusted EBITDA of $1,614M grew 58% YoY, with an 84% margin versus 81% a year earlier.
Q2 net income of $1,267M (+55% YoY); basic/diluted EPS of $3.77/$3.76. Q2 results include $62M of other income, net.
Free Cash Flow of $863M in Q2 (vs. $768M in Q2 2025); operating cash flow of $869M.
Capital return: $551M of repurchases and tax-withholding payments in Q2; share count down to 335M from 338M at year-end 2025.
Q3 2026 guidance: revenue $2,055M–$2,085M and Adjusted EBITDA $1,710M–$1,740M, implying ~83% margin and ~8% sequential revenue growth at the midpoint.
Watch items: cash taxes paid rose to $640M in H1 from $101M, the effective tax rate rose to ~16%, and R&D expense rose about 127% YoY to $100M.

03—Questions

Frequently Asked Questions

How strong was AppLovin's Q2 2026 growth compared with prior periods?
Revenue grew 53% YoY to $1.92 billion, and Adjusted EBITDA grew 58% to $1.61 billion. Operating income rose about 56% to $1.49 billion. Growth in the first half was similar, with revenue up 56% and continuing-operations net income up 65%, indicating sustained momentum rather than a one-quarter spike.
What is the quality of the Q2 earnings beat, given non-operating items?
Net income benefited from $62 million of other income, net, in Q2 2026, compared with a $22 million expense a year earlier. Operating income of $1.49 billion is the cleaner measure of core performance. The effective tax rate increased to about 15.9% from about 12.7%, which reduced the bottom-line benefit. Q2 2025 net income also included $48 million from discontinued operations, so the year-over-year net income comparison is distorted to some extent.
What does the Q3 2026 guidance imply for investors?
The guidance midpoint of $2.07 billion in revenue implies roughly 8% sequential growth from Q2 and about 22% year-over-year growth versus Q3 2025 if that base is comparable. Adjusted EBITDA guidance of $1.71–$1.74 billion implies an 83% margin, slightly below Q2's 84%. Because the company does not provide GAAP reconciliations for forward Adjusted EBITDA, investors should weigh stock-based compensation and other reconciling items when comparing to GAAP results.
How is AppLovin deploying its cash, and what is the balance sheet position?
Cash and equivalents increased to $3.05 billion from $2.49 billion at year-end 2025. Long-term debt was roughly flat at $3.52 billion. The company spent about $1.53 billion on share repurchases in the first half and reduced its share count to 335 million. Free Cash Flow of $863 million in Q2 covered a substantial portion of that return activity. Investors should note that the company's cash taxes increased sharply, which may reduce the pace of future free cash flow relative to earnings.
Are there any risks or disclosure caveats in this filing?
The release includes forward-looking statements subject to macroeconomic, competitive, and technology risks, and refers to the Q1 2026 10-Q and forthcoming Q2 10-Q for full risk disclosure. Adjusted EBITDA and Free Cash Flow are non-GAAP measures, and management acknowledges that they may not be comparable with other companies' metrics. Because the 8-K furnishes the release under Item 2.02, it is not deemed filed for Section 18 liability purposes. Investors should review the full 10-Q for details on tax, R&D, and operating-expense trends.

04—Continue

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