AppLovin CDR (CAD Hedged)(TSE:APPS)
CA$12.30-0.36 (-2.84%)
TSE:APPS
AppLovin CDR (CAD Hedged) earnings date
CA$12.30
At close:-0.36 (-2.84%)
AppLovin CDR (CAD Hedged) (APPS) Q3 2026 Earnings Report
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TSE:APPS Q3 2026 EPS Results
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TSE:APPS Q3 2026 Revenue Results
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Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
TSE:APPS Upcoming Earnings
AppLovin CDR (CAD Hedged)'s next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
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 optimistic. AppLovin reported record revenue, earnings, margins, free cash flow, gaming growth, and consumer-spend growth, exceeded the high end of guidance, expanded its buyback authorization, and provided a forecast for more than 50% full-year 2026 revenue and adjusted EBITDA growth. The main challenges were the incomplete model rollout, the lower sequential growth range implied by fourth-quarter guidance, early-stage execution in consumer and CTV, e-commerce seasonality, and the need for additional data and advertiser education. Highlights significantly outweighed the lowlights.
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, or 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 company still expects full-year free cash flow conversion of roughly 70%-75% of adjusted EBITDA and believes the business can compound at roughly 30% annually over the long term.
- Record Revenue and Strong Year-over-Year GrowthThird-quarter revenue reached a record $2.18 billion, up 55% year-over-year and 14% sequentially. Revenue exceeded the high end of guidance by approximately $100 million and represented the largest sequential dollar step-up, at well over $200 million more than the prior quarter.
- Record Profitability and EBITDA PerformanceNet income grew 72% year-over-year to $1.44 billion, with a 66% net income margin. Adjusted EBITDA was $1.84 billion, up 59% year-over-year, above the high end of guidance, and produced an 84% margin, approximately 190 basis points higher than the same period last year. Quarter-over-quarter flow-through to adjusted EBITDA was 87%.
- Model Improvements Drove Core Gaming GrowthThe partial rollout of the next generation of models produced strong performance, allowing advertisers to deploy more spend profitably at their target return on ad spend goals. The core mobile gaming business primarily drove the revenue upside, and gaming revenue grew nearly 50% year-over-year.
- Significant Remaining Model Optimization OpportunityManagement said the new model architecture has meaningfully more room to optimize than the prior architecture, particularly where data is sparser, including newer, smaller advertisers and newer categories. The rollout remains partial, and management said the company is still very early in realizing the available headroom.
- Consumer Advertising Growth AcceleratedConsumer advertiser spend grew double digits quarter-over-quarter and triple digits from the same quarter last year. Management said the consumer vertical continues to scale, remains lightly penetrated, and provides substantial future customer-acquisition and growth opportunity.
- Margin Discipline Despite Higher Training InvestmentAlthough investment in compute for training existing and new models increased, data center costs declined as a percentage of revenue due to infrastructure optimizations. Management said every dollar of model investment is gated on return and emphasized that the quarter demonstrated both revenue returns and margin discipline.
- Strong Free Cash Flow GenerationFree cash flow was $1.4 billion, equal to 77% of adjusted EBITDA, up from 53% in the second quarter. The company also said it converted roughly 65% of revenue into free cash flow during the quarter and continues to expect full-year free cash flow conversion of roughly 70%-75% of adjusted EBITDA.
- Strong Relative Performance Versus the Advertising MarketManagement compared AppLovin's 55% year-over-year revenue growth with third-quarter growth of roughly 10% to the mid-20%s reported by the largest digital advertising platforms, stating that AppLovin grew several times faster and delivered margins well above its advertising peers.
- Healthy Balance Sheet and Low Net LeverageThe company 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 approximately one times net leverage as the company's expected long-term operating level.
- Expanded Share Repurchases and Reduced Share CountAppLovin repurchased and withheld 4.1 million shares for $1.4 billion during the quarter and ended the period with 331 million shares outstanding. The board added $3.2 billion to the repurchase authorization, bringing the total current authorization to $3.6 billion as of the end of October. Since the program began, the company has repurchased and withheld 104 million shares for $9.4 billion, returned 85% of free cash flow over that period, and reduced its weighted average diluted share count by approximately 2% year-over-year for the eighth consecutive quarter.
- 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 guidance implies full-year 2026 revenue and adjusted EBITDA growth of more than 50%.
- Consumer Seasonal Positioning and Gaming SeasonalityManagement said consumer is well positioned for the seasonal peak associated with Black Friday, Cyber Monday, and the holiday period. The company also expects strong fourth-quarter gaming seasonality and cited gaming's historical Q5 phenomenon, in which advertisers can spend competitively during the post-holiday period.
- Expanding Customer Acquisition and Referral EffortsManagement said customer counts and pixel counts are increasing at an accelerating rate. Referral partnerships are expected to develop over a multi-quarter and multi-year period, with customers progressing from initial campaigns and optimization to incrementality studies and longer-term scaling.
- CTV Product ProgressAppLovin has pilot campaigns running on connected TV, and management said the product is looking promising and the team is gaining confidence in the roadmap. CTV is part of the company's efforts to expand beyond its current advertising categories.
- Creative Tools and Ad-Format DevelopmentThe company is focused on improving creative tools and ad formats, including dynamic product advertising and greater diversity of content. Management said advertisers typically achieve more success when they provide more creatives, and AppLovin ads receive more than 35 seconds of average watch time in a full-screen format.
- Strong MAX Supply GrowthManagement said MAX supply is still growing at a strong double-digit rate annually, compared with low double-digit to potentially single-digit growth for much of the broader advertising ecosystem. The company attributed its faster business growth to improving its technology at a rate better than the market.
- Potential for Additional Data and Customer RelationshipsManagement said more data can support larger and more complex models and improve prediction output. The company remains open to acquiring data and customer relationships that could bring customers and data onto the platform more quickly, citing the prior MoPub transaction as an example of an acquisition that paid for itself many times over.
- Positive Competitive PositioningManagement said AppLovin's growth is not dependent on competitors losing share because the advertising market is not zero-sum. It stated that AppLovin's technology has produced stronger customer return on ad spend and that the company delivered a massive quarter while multiple other advertising companies were also performing well.
TSE:APPS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | ―- | ― | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | ―- | ― | ― | |
| Aug 05, 2026 | 2026 (Q2) | ―- | ― | ― | |
| May 06, 2026 | 2026 (Q1) | ―- | ― | ― | |
| Feb 26, 2026 | 2026 (Q1) | ―- | ― | ― | |
| Dec 04, 2025 | 2025 (Q4) | ―- | ― | ― | |
| Aug 28, 2025 | 2025 (Q3) | ―- | ― | ― | |
| May 29, 2025 | 2025 (Q2) | ―- | ― | ― | |
| Feb 27, 2025 | 2025 (Q1) | ―- | ― | ― | |
| Dec 05, 2024 | 2024 (Q4) | ―- | ― | ― |
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
