AppLovin(IT:1APP)
€360.05+12.45 (+3.58%)
IT:1APP
AppLovin earnings date
€360.05
At close:+12.45 (+3.58%)
AppLovin (1APP) Q3 2026 Earnings Report
2 Followers
IT:1APP Q3 2026 EPS Results
- Actual EPS
- EUR 3.85
- Consensus EPS
- EUR 3.61
- Beat/Miss
- Beat by +EUR 0.24
- One Year Ago EPS
- EUR 2.19
IT:1APP Q3 2026 Revenue Results
- Actual Revenue
- EUR 1.96B
- Expected Revenue
- EUR 1.86B
- Beat/Miss
- Beat by +EUR 98.53M
- YoY Revenue Growth
- +55.50%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
IT:1APP Upcoming Earnings
AppLovin's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
IT:1APP Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. AppLovin reported record revenue, net income, adjusted EBITDA, margins, and free cash flow, exceeded the high end of guidance, delivered rapid growth in both gaming and consumer advertising, and provided a strong fourth-quarter outlook. The main challenges were the still-partial model rollout, seasonal e-commerce dynamics, early-stage consumer onboarding and connected TV initiatives, and limited visibility into the precise contribution of individual growth drivers.
Company Guidance
For the fourth quarter of 2026, AppLovin expects revenue between $2.365 billion and $2.395 billion, representing approximately 43%-44% year-over-year growth and 8%-10% sequentially, and adjusted EBITDA between $1.995 billion and $2.025 billion, representing approximately 43%-45% year-over-year growth; at the midpoint, this guidance implies full-year 2026 revenue and adjusted EBITDA growth of more than 50%. The outlook reflects normal seasonality, further scaling in the consumer vertical, significant model improvements that are already live and performing, and continued investment in training compute for new model development, while full-year free cash flow conversion is expected to be roughly 70%-75% of adjusted EBITDA. Over the long term, the company believes the business can compound at roughly 30% annually, expects to operate at roughly one times net leverage, and said MAX supply growth remains strong double digits every year.
- Record Revenue and Guidance OutperformanceThird-quarter revenue reached a record $2.18 billion, up 55% year-over-year and more than $200 million above the prior quarter. Revenue exceeded the high end of guidance by approximately $100 million, and the company reported its largest sequential dollar step-up in revenue.
- Strong Net Income and MarginsNet income grew 72% year-over-year to $1.44 billion. AppLovin reported a 66% net income margin and an 84% adjusted EBITDA margin.
- Adjusted EBITDA Growth and Operating LeverageAdjusted EBITDA was $1.84 billion, up 59% year-over-year and above the high end of guidance. The 84% adjusted EBITDA margin increased approximately 190 basis points year-over-year, while quarter-over-quarter flow-through to adjusted EBITDA was 87%.
- Model Improvements Drove Gaming GrowthThe partial rollout of the next generation of models produced strong performance, enabling advertisers to deploy more spend profitably at their target return on ad spend goals. The gaming business grew nearly 50% year-over-year and re-accelerated alongside the rollout.
- Consumer Advertising MomentumConsumer advertiser spend grew double digits quarter-over-quarter and triple digits from the same quarter last year. Management said the consumer vertical has significant runway and is positioned well for the seasonal Q4 spending period.
- Model Architecture Provides Additional Optimization HeadroomManagement said the new model generation has meaningfully more room to optimize than the prior architecture and improves performance particularly where data is sparser, including newer, smaller advertisers and newer categories.
- Data Center Efficiency Improved Despite Compute InvestmentData center costs declined as a percentage of revenue because of infrastructure optimizations, even as the company invested in additional compute for training existing models and developing new models.
- Strong Free Cash Flow GenerationThird-quarter free cash flow was $1.4 billion, equal to 77% of adjusted EBITDA, compared with 53% in the second quarter. Management continues to expect full-year free cash flow conversion of roughly 70%-75% of adjusted EBITDA.
- Healthy Balance Sheet and Low LeverageAppLovin ended the quarter with $3.17 billion of cash and $3.5 billion of long-term debt. Net leverage was below 0.1 times adjusted EBITDA, compared with the roughly one times net leverage level where management expects to operate over the long term.
- Expanded Share RepurchasesThe company repurchased and withheld 4.1 million shares for $1.4 billion during the quarter. The board added $3.2 billion to the share repurchase authorization, bringing the total current authorization to $3.6 billion as of the end of October.
- Long-Term Reduction in Share CountSince the repurchase program began, AppLovin has repurchased and withheld 104 million shares for $9.4 billion at an average price of $90 per share, returning 85% of free cash flow over that period. The weighted average diluted share count has declined for eight consecutive quarters and is down approximately 2% year-over-year.
- Strong Fourth-Quarter OutlookFourth-quarter revenue guidance is $2.365 billion to $2.395 billion, representing approximately 43%-44% year-over-year growth and 8%-10% sequential growth. Adjusted EBITDA guidance is $1.995 billion to $2.025 billion, representing approximately 43%-45% year-over-year growth. At the midpoint, the outlook implies full-year 2026 revenue and adjusted EBITDA growth of more than 50%.
- Growth Outpaced the Broader Digital Advertising MarketManagement compared AppLovin's 55% third-quarter revenue growth with reported growth of roughly 10% to the mid-20%s for the largest digital advertising platforms, stating that AppLovin grew several times faster while maintaining higher margins than advertising peers.
- Strong Long-Term Growth AmbitionManagement reiterated that the unified auction business can compound at roughly 30% annually over the long term, with gaming continuing to improve and the consumer vertical adding runway.
- Customer Acquisition and Referral MomentumManagement said more customers are coming onto the platform and that the rate is accelerating. Referral partnerships are expected to compound over time as more campaigns run, customers validate results, and positive product sentiment develops.
- Connected TV Product ProgressAppLovin has pilot connected TV campaigns running, and management said the product is looking promising. The team is gaining confidence in the product roadmap and sees potential in connected TV inventory that is currently under-monetized.
- Creative Tools and Ad Format ExpansionThe company is focused on improving creative tools and expanding ad formats, including dynamic product ads and additional formats designed to provide consumers with more content diversity. Management expects ad formats to evolve significantly over the next couple of years.
- Strong MAX Supply GrowthManagement said supply in the MAX market is still growing at a strong double-digit rate every year, faster than many other advertising spaces that are growing at very low double-digit or possibly single-digit rates.
- Technology Has Outpaced Market ImprovementManagement said AppLovin has improved its technology faster than the market over the last four years, allowing the business to grow much faster than the broader market.
- Prior Model and Execution Concerns Were AddressedManagement said the prior-quarter miss was identified, fixed, and followed by a re-acceleration that appeared in the third-quarter results. The company also stated that its recent performance remained strong despite multiple other advertising companies performing well.
- Potential Data and Customer-Relationship Acquisition OpportunityManagement said future acquisitions could focus on valuable data and customer relationships that would bring customers and data onto the platform faster. Management cited the prior MoPub transaction as having paid for itself many times over.
IT:1APP Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 4.20- | 2.9 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 3.613.85 | 2.19 | 75.51% (+1.66) | |
| Aug 05, 2026 | 2026 (Q2) | 3.363.37 | 2.14 | 57.32% (+1.23) | |
| May 06, 2026 | 2026 (Q1) | 3.083.19 | 1.5 | 113.17% (+1.69) | |
| Feb 11, 2026 | 2025 (Q4) | 2.642.90 | 1.55 | 87.28% (+1.35) | |
| Nov 05, 2025 | 2025 (Q3) | 2.132.19 | 1.12 | 96.00% (+1.07) | |
| Aug 06, 2025 | 2025 (Q2) | 1.752.14 | 0.8 | 168.54% (+1.34) | |
| May 07, 2025 | 2025 (Q1) | 1.291.50 | 0.6 | 149.25% (+0.90) | |
| Feb 12, 2025 | 2024 (Q4) | 1.121.55 | 0.44 | 253.06% (+1.11) | |
| Nov 06, 2024 | 2024 (Q3) | 0.831.12 | 0.27 | 316.67% (+0.85) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
