EarningsQ2 2026 Earnings Report
TSE:APPS Q2 2026 EPS Results
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TSE:APPS Q2 2026 Revenue Results
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Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
TSE:APPS Upcoming Earnings
AppLovin CDR (CAD Hedged)'s next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, supported by 53% year-over-year revenue growth, 58% adjusted EBITDA growth, approximately 83% expected third-quarter EBITDA margins, record consumer advertiser spend and a model improvement already live in Q3. Management acknowledged that Q2 revenue and adjusted EBITDA were below guidance expectations, while also highlighting weaker-than-usual model uplift, higher compute costs, consumer creative limitations and several businesses that remain early or in development. The stated outlook and management's continued confidence in the long-term opportunity outweighed the identified challenges.Company Guidance
Strong Revenue Growth
Second-quarter revenue was $1.92 billion, growing 53% year-over-year and 4% sequentially, driven by the core gaming business and continued scaling in the consumer vertical.
Adjusted EBITDA Expansion
Adjusted EBITDA was $1.61 billion, up 58% year-over-year, with margins expanding approximately 300 basis points from the same period last year. Quarter-over-quarter flow-through to adjusted EBITDA was 70%.
Consumer Advertiser Spend Reached a Record
Consumer advertiser spend set another record and finished 28% above Q4 2025 levels, despite Q4 being the seasonal peak for these advertisers. Management said the growth indicates that existing customers are seeing substantial success on the platform.
Healthy Advertiser Demand and Publisher Economics
Management said nothing in the quarter suggested weakening advertiser demand or a change in the competitive environment. MAX publisher earnings grew double digits quarter-over-quarter, and AppLovin's share of publisher waterfalls remained consistent.
Model Improvements Live in Q3
The next step-up in model performance landed just after quarter end and was already live and performing at the time of the call. Management said Q3 was off to a strong start and that the business was back on its expected trajectory.
Positive Third-Quarter Outlook
Third-quarter revenue is expected to be between $2.055 billion and $2.085 billion, representing 46% to 48% year-over-year growth and 7% to 8% sequential growth. Adjusted EBITDA is expected to be between $1.71 billion and $1.74 billion, representing 48% to 50% year-over-year growth, with an adjusted EBITDA margin of approximately 83%.
Strong Cash Generation and Balance Sheet
Free cash flow was $863 million for the quarter. The company ended the quarter with $3.05 billion of cash against $3.7 billion of total debt, with net leverage at approximately 0.1x trailing 12-month adjusted EBITDA, well within the approximately 1x level where management expects to operate over the long term.
Share Repurchases Continued
AppLovin repurchased and withheld approximately 1.14 million shares for $551 million during the quarter. It ended the quarter with 335 million shares outstanding and approximately $1.8 billion remaining under its share repurchase authorization.
SEC Inquiry Resolved Without Recommended Action
Management said the SEC inquiry was a voluntary request that the company never deemed material, and that the SEC concluded its inquiry with no recommended action.
Long-Term Growth Opportunity
Management believes the business can compound at roughly 30% annually over the longer term as it continues improving gaming and expanding the consumer business.
Continued Investment in Technology and AI-Enabled Testing
The company is investing in architectural changes that support more complex models and allow the models to benefit more from additional training compute. Management also said it plans to hire more research scientists and use large language models to accelerate A/B testing and coding.
Consumer Platform General Availability Launch
The platform was opened to the public under its original name, AppLovin Ads Manager, in late June. Management said the launch is being deliberately sequenced toward mid-market advertisers, where the platform performs best today, with the long tail expected to be addressed as data compounds.
Targeted Partnership Strategy for Advertiser Acquisition
AppLovin has completed deals with third-party companies, including a large e-commerce analytics company, to target and bring mid-market advertisers onto the platform. Management cited partnerships such as Triple Whale as an active example of the model being developed.
Gaming Platform Performance Remains Strong
Management said AppLovin is competitive on both iOS and Android, and that as models improve, its ability to scale advertiser spend increases on both platforms. The company also said MAX grew double digits quarter-over-quarter and that AppLovin remains the largest mobile gaming user-acquisition platform to management's knowledge.
Long-Term Consumer Expansion Opportunities
Management identified non-gaming apps, additional open-web placements and connected TV as future supply-expansion opportunities. It said consumer advertising could eventually port from mobile devices to television, including full-screen product advertising.
Long-Term EBITDA Margin Confidence
Despite potential short-term variability, management said it remains highly confident that the business will be within the low 80% EBITDA margin range over the longer term.
TSE:APPS Earnings History
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