AppLovin Announces Third Quarter 2026 Financial Results
AppLovin posted record third quarter earnings: net income grew 72% year-over- year to $1.44 billion on record revenue of $2.18 billion, up 55% year-over-year, with industry-leading 66% net income margin and 84% Adjusted EBITDA margin.
– AppLovin Corporation (NASDAQ: APP) (“AppLovin” or the "Company"), a leading marketing platform, today announced financial results for the quarter ended September 30, 2026 and posted a financial update on its Investor Relations website located at https://investors.applovin.com .
● Net cash from operating activities and Free Cash Flow were $1.4 billion for the third quarter 2026.
● Basic and Diluted earnings per share ("EPS") were $4.31 and $4.30, respectively, for the third quarter 2026.
● During the third quarter 2026, we repurchased and withheld 4.1 million shares of our Class A common stock, for a total cost of $1.4 billion 1 . At the end of 3Q 2026, we had 331 million shares of our Class A and Class B common stock outstanding.
● Given continued confidence in the Company's future, our board of directors approved an increase to our share repurchase authorization of $3.2 billion, bringing our total current share repurchase authorization to $3.6 billion as of the end of October.
4Q26 (In millions, except percentages) Low High Revenue $2,365 $2,395 Adjusted EBITDA $1,995 $2,025 Adjusted EBITDA Margin 84 % 85 %
1 Includes repurchased shares as well as withholdings upon net share settlement of vested equity awards. Total cost includes repurchase costs, including commissions, taxes, and fees, as well as cash paid in connection with tax withholding and remittance obligations upon net share settlement. Future repurchases may be made from time to time through open market purchases or through privately negotiated transactions, subject to market conditions, applicable legal requirements, including surplus and solvency requirements, and other relevant factors.
2 We have not provided the forward-looking GAAP equivalents for forward-looking non-GAAP metrics, specifically Adjusted EBITDA and Adjusted EBITDA margin, or a GAAP
reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of
these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to
reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this press release.
AppLovin will host a webinar today at 2:00 PM PT / 5:00 PM ET, during which management will discuss the Company’s third quarter 2026 results and provide commentary on its business performance. A question-and-answer session will follow the prepared remarks.
The webinar may be accessed on the Company’s investor relations website or via webinar registration . A replay of the webinar will also be available under the Events & Presentations section of our Investor Relations website.
AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end advertising solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “going to,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include our expected financial results and guidance and statements regarding our share repurchase program. Our ability to utilize the full amount authorized by our share repurchase program will depend on a variety of factors, including compliance with legal requirements, such as solvency and surplus requirements; contractual restrictions; market conditions; our capital allocation strategy; and our other capital requirements from time to time, including any strategic transactions we may undertake. Over time, we may modify our capital allocation strategy or pursue alternative objectives and strategies. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties, including changes in our plans or assumptions, which could cause actual results to differ materially from those projected. These risks include our inability to forecast our business effectively, the macroeconomic environment, fluctuations in our results of operations, our ability to execute on our operational and financial priorities, our ability to scale our business to support new customers, the competitive advertising ecosystem, and our inability to adapt to emerging technologies and business models. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.
To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP measure can be found below.
We define Adjusted EBITDA for a particular period as net income adjusted for loss from discontinued operations, net of income taxes, interest expense, other (income) expense, net (excluding certain recurring items), provision for income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange gain, stock-based compensation, transaction- related expense and other, restructuring costs (benefits), as we believe these items are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.
We define Free Cash Flow as net cash provided by operating activities less purchases of property and equipment and principal payments on finance leases. We subtract both purchases of property and equipment and payment of finance leases in our calculation of Free Cash Flow because we believe these items represent our ongoing requirements for property and equipment to support our business, regardless of whether we utilize a finance lease to obtain such property or equipment.
We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and operating performance, as they are similar to measures reported by our public competitors and are regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects.
Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We use Free Cash Flow in addition to GAAP measures to help manage our business and prepare budgets and annual planning, and we believe Free Cash Flow provides useful supplemental information to help investors understand underlying trends in our business and our liquidity.
These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Free Cash Flow reflects cash flows from both of continuing and discontinued operations. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash equivalents $ 3,173,731 $ 2,487,096 Accounts receivable, net 2,388,782 1,819,366 Prepaid expenses and other current 141,842 124,330 assets Total current assets 5,704,355 4,430,792 Property and equipment, net 113,342 122,445 Goodwill 1,516,423 1,539,986 Intangible assets, net 336,185 396,714 Equity method investments 298,333 287,666 Other non-current assets 614,111 482,007 Total assets $ 8,582,749 $ 7,259,610 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 838,172 $ 746,977 Accrued and other current 661,182 586,811 liabilities Total current liabilities 1,499,354 1,333,788 Long-term debt 3,516,136 3,512,987 Other non-current liabilities 268,557 278,164 Total liabilities 5,284,047 5,124,939 Stockholders’ equity: Preferred Stock, $0.00003 par value—100,000 shares authorized, no shares issued and outstanding as — — of September 30, 2026 and December 31, 2025 Class A, Class B, and Class C Common Stock, $0.00003 par value—1,850,000 (Class A 1,500,000, Class B 200,000, Class C 150,000) shares authorized, 331,322 (Class A 301,258, Class B 11 11 30,064, Class C nil) and 338,313 (Class A 307,955, Class B 30,358, Class C nil) shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively Additional paid-in capital 649,790 446,550 Accumulated other comprehensive -76,530 -46,987 loss Retained earnings 2,725,431 1,735,097 Total stockholders’ equity 3,298,702 2,134,671 Total liabilities and stockholders’ $ 8,582,749 $ 7,259,610 equity
Nine Months Ended September 30, Operating Activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 3,911,053 $ 2,231,495 Adjustments to reconcile net income to net cash provided by operating activities: Amortization, depreciation and 100,418 162,042 write-offs Goodwill impairment — 188,943 Stock-based compensation, 253,138 130,167 excluding cash-settled awards Gain on divestiture, net of transaction — -106,229 costs Other -91,330 80,887 Changes in operating assets and liabilities: Accounts receivable -571,015 -326,747 Prepaid expenses and 2,671 84,474 other assets Accounts payable 88,410 2,069 Accrued and other -104,070 210,259 liabilities Net cash provided by operating 3,589,275 2,657,360 activities Investing Activities Proceeds from divestiture, net of — 407,297 cash divested Purchase of non-marketable — -20,178 equity securities Other investing -25,375 -27,863 activities Net cash provided by (used in) investing -25,375 359,256 activities Financing Activities Repurchases of -2,811,222 -1,774,329 common stock Payment of withholding taxes -55,818 -316,882 related to net share settlement Principal repayments — -200,000 of debt Payments of licensed — -13,532 asset obligation Proceeds from — 200,000 issuance of debt Other financing -5,913 4,889 activities Net cash used in -2,872,953 -2,099,854 financing activities Effect of foreign exchange rate on -4,312 8,726 cash and cash equivalents Net increase in cash and cash equivalents, 686,635 925,488 including cash from discontinued operations Less: net decrease in cash from — -44,381 discontinued operations Net increase in cash and cash 686,635 969,869 equivalents Cash and cash equivalents at 2,487,096 697,030 beginning of the period Cash and cash equivalents at end $ 3,173,731 $ 1,666,899 of the period Supplemental disclosure of cash flow information: Cash paid for $ 100,834 $ 101,023 interest Cash paid for income taxes, net of $ 926,151 $ 167,291 refunds
The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow for the periods presented:
(In thousands, except percentages) The following table provides our Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of Net Income to Adjusted EBITDA for the periods presented:
Full text with the tables
Exhibit 99.1
AppLovin Announces Third Quarter 2026 Financial Results
AppLovin posted record third quarter earnings: net income grew 72% year-over-
year to $1.44 billion on record revenue of $2.18 billion, up 55% year-over-year,
with industry-leading 66% net income margin and 84% Adjusted EBITDA margin.
PALO ALTO – November 4, 2026
– AppLovin Corporation (NASDAQ: APP) (“AppLovin” or the "Company"), a leading
marketing platform, today announced financial results for the quarter ended
September 30, 2026 and posted a financial update on its Investor Relations
website located at https://investors.applovin.com .
Third Quarter 2026 Financial Highlights:
N…
Q… M…
… E… E…
… S… S…
… 3… % 3… %
… 2… 2… C… 2… 2… Ch…
──────────────────────────────────────────────────────────────────────────────
… $… $… 55 % $… $… 56 %
… $… $… 72 % $… $… 75 %
…
…
…
… $… $… 72 % $… $… 68 %
…
…
… $… $… 59 % $… $… 61 %
…
Additional Financial Highlights:
● Net cash from operating activities and Free Cash Flow were $1.4 billion for
the third quarter 2026.
● Basic and Diluted earnings per share ("EPS") were $4.31 and $4.30,
respectively, for the third quarter 2026.
● During the third quarter 2026, we repurchased and withheld 4.1 million shares
of our Class A common stock, for a total cost of $1.4 billion 1 . At the end of
3Q 2026, we had 331 million shares of our Class A and Class B common stock
outstanding.
● Given continued confidence in the Company's future, our board of directors
approved an increase to our share repurchase authorization of $3.2 billion,
bringing our total current share repurchase authorization to $3.6 billion as of
the end of October.
Fourth Quarter 2026 Financial Guidance Summary
2
4Q26
(In millions, except percentages) Low High
Revenue $2,365 $2,395
Adjusted EBITDA $1,995 $2,025
Adjusted EBITDA Margin 84 % 85 %
1 Includes repurchased shares as well as withholdings upon net share settlement
of vested equity awards. Total cost includes repurchase costs, including
commissions, taxes, and fees, as well as cash paid in connection with tax
withholding and remittance obligations upon net share settlement. Future
repurchases may be made from time to time through open market purchases or
through privately negotiated transactions, subject to market conditions,
applicable legal requirements, including surplus and solvency requirements, and
other relevant factors.
2 We have not provided the forward-looking GAAP equivalents for forward-looking
non-GAAP metrics, specifically Adjusted EBITDA and Adjusted EBITDA margin, or a
GAAP
reconciliation as a result of the uncertainty regarding, and the potential
variability of, reconciling items such as stock-based compensation expense.
Accordingly, a reconciliation of
these non-GAAP guidance metrics to their corresponding GAAP equivalents is not
available without unreasonable effort. However, it is important to note that
material changes to
reconciling items could have a significant effect on future GAAP results. We
have provided historical reconciliations of GAAP to non-GAAP metrics in tables
at the end of this press release.
1
Webcast and Conference Call
AppLovin will host a webinar today at 2:00 PM PT / 5:00 PM ET, during which
management will discuss the Company’s third quarter 2026 results and provide
commentary on its business performance. A question-and-answer session will
follow the prepared remarks.
The webinar may be accessed on the Company’s investor relations website or via
webinar registration . A replay of the webinar will also be available under the
Events & Presentations section of our Investor Relations website.
About AppLovin
AppLovin makes technologies that help businesses of every size connect to their
ideal customers. The company provides end-to-end advertising solutions for
businesses to reach, monetize and grow their global audiences. For more
information about AppLovin, visit: www.applovin.com.
Contacts
InvestorsDavid Hsiaoir@applovin.com PressEmelyne
Interiorpress@applovin.com
Source: AppLovin Corp.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements generally relate to future
events or our future financial or operating performance. In some cases, you can
identify forward-looking statements because they contain words such as “may,”
“will,” “should,” “expect,” “plan,” “anticipate,” “going to,” “could,” “intend,”
“target,” “project,” “contemplate,” “believe,” “estimate,” “predict,”
“potential,” or “continue,” or the negative of these words or other similar
terms or expressions that concern our expectations, strategy, priorities, plans,
or intentions. Forward-looking statements in this press release include our
expected financial results and guidance and statements regarding our share
repurchase program. Our ability to utilize the full amount authorized by our
share repurchase program will depend on a variety of factors, including
compliance with legal requirements, such as solvency and surplus requirements;
contractual restrictions; market conditions; our capital allocation strategy;
and our other capital requirements from time to time, including any strategic
transactions we may undertake. Over time, we may modify our capital allocation
strategy or pursue alternative objectives and strategies. Our expectations and
beliefs regarding these matters may not materialize, and actual results in
future periods are subject to risks and uncertainties, including changes in our
plans or assumptions, which could cause actual results to differ materially from
those projected. These risks include our inability to forecast our business
effectively, the macroeconomic environment, fluctuations in our results of
operations, our ability to execute on our operational and financial priorities,
our ability to scale our business to support new customers, the competitive
advertising ecosystem, and our inability to adapt to emerging technologies and
business models. The forward-looking statements contained in this press release
are also subject to other risks and uncertainties, including those more fully
described in our Quarterly Report on Form 10-Q for the fiscal quarter ended June
30, 2026. Additional information will also be set forth in our Quarterly Report
on Form 10-Q for the quarter ended September 30, 2026. The forward-looking
statements in this press release are based on information available to us as of
the date hereof, and we disclaim any obligation to update any forward-looking
statements, except as required by law.
2
Non-GAAP Financial Measures
To supplement our financial information presented in accordance with generally
accepted accounting principles in the United States (“GAAP”), this press release
includes certain financial measures that are not prepared in accordance with
GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. A
reconciliation of each such non-GAAP financial measure to the most directly
comparable GAAP measure can be found below.
We define Adjusted EBITDA for a particular period as net income adjusted for
loss from discontinued operations, net of income taxes, interest expense, other
(income) expense, net (excluding certain recurring items), provision for income
taxes, amortization, depreciation and write-offs and as further adjusted for
non-operating foreign exchange gain, stock-based compensation, transaction-
related expense and other, restructuring costs (benefits), as we believe these
items are not reflective of our core operating performance. We define Adjusted
EBITDA margin as Adjusted EBITDA divided by revenue for the same period.
We define Free Cash Flow as net cash provided by operating activities less
purchases of property and equipment and principal payments on finance leases. We
subtract both purchases of property and equipment and payment of finance leases
in our calculation of Free Cash Flow because we believe these items represent
our ongoing requirements for property and equipment to support our business,
regardless of whether we utilize a finance lease to obtain such property or
equipment.
We believe that the presentation of these non-GAAP financial measures provides
useful information to investors regarding our results of operations and
operating performance, as they are similar to measures reported by our public
competitors and are regularly used by securities analysts, institutional
investors, and other interested parties in analyzing operating performance and
prospects.
Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our
financial performance and are also used for internal planning and forecasting
purposes. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to
investors, analysts, and other interested parties because they can assist in
providing a more consistent and comparable overview of our operations across our
historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin
in conjunction with GAAP measures as part of our overall assessment of our
performance, including the preparation of our annual operating budget and
quarterly forecasts, to evaluate the effectiveness of our business strategies,
and to communicate with our board of directors concerning our financial
performance. We use Free Cash Flow in addition to GAAP measures to help manage
our business and prepare budgets and annual planning, and we believe Free Cash
Flow provides useful supplemental information to help investors understand
underlying trends in our business and our liquidity.
These measures have certain limitations in that they do not include the impact
of certain expenses that are reflected in our consolidated statement of
operations that are necessary to run our business. Free Cash Flow reflects cash
flows from both of continuing and discontinued operations. Our definitions may
differ from the definitions used by other companies and therefore comparability
may be limited. In addition, other companies may not publish these or similar
metrics. Thus, our non-GAAP financial measures should be considered in addition
to, not as substitutes for, or in isolation from, measures prepared in
accordance with GAAP.
3
AppLovin Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
September 30,
2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and cash equivalents $ 3,173,731 $ 2,487,096
Accounts receivable, net 2,388,782 1,819,366
Prepaid expenses and other
current 141,842 124,330
assets
Total current assets 5,704,355 4,430,792
Property and equipment, net 113,342 122,445
Goodwill 1,516,423 1,539,986
Intangible assets, net 336,185 396,714
Equity method investments 298,333 287,666
Other non-current assets 614,111 482,007
Total assets $ 8,582,749 $ 7,259,610
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable $ 838,172 $ 746,977
Accrued and other current 661,182 586,811
liabilities
Total current liabilities 1,499,354 1,333,788
Long-term debt 3,516,136 3,512,987
Other non-current liabilities 268,557 278,164
Total liabilities 5,284,047 5,124,939
Stockholders’ equity:
Preferred Stock, $0.00003 par
value—100,000 shares authorized,
no
shares issued and outstanding as — —
of
September 30, 2026 and December
31, 2025
Class A, Class B, and Class C
Common
Stock, $0.00003 par
value—1,850,000
(Class A 1,500,000, Class B
200,000,
Class C 150,000) shares
authorized,
331,322 (Class A 301,258, Class
B 11 11
30,064, Class C nil) and 338,313
(Class
A 307,955, Class B 30,358, Class
C nil)
shares issued and outstanding as
of
September 30, 2026 and December
31,
2025, respectively
Additional paid-in capital 649,790 446,550
Accumulated other comprehensive -76,530 -46,987
loss
Retained earnings 2,725,431 1,735,097
Total stockholders’ equity 3,298,702 2,134,671
Total liabilities and
stockholders’ $ 8,582,749 $ 7,259,610
equity
4
AppLovin Corporation
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Nine
Quarter Months
Ended Ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Reven… $ 2,184,… $ 1,405,0… $ 5,950,… $ 3,822,7…
Costs
and
expen…
Cost
of 240,765 174,855 670,198 481,611
reven…
Sales
and 68,803 48,575 192,948 154,875
marke…
Resea…
and 101,817 43,852 295,822 144,290
devel…
Gener…
and 64,462 58,756 148,804 165,326
admin…
Total
costs 475,847 326,038 1,307,… 946,102
and
expen…
Income
from 1,708,… 1,079,0… 4,643,… 2,876,6…
opera…
Other
income
(expe…
Inter… -51,066 -51,429 -153,3… -155,726
expen…
Other
income 86,032 -6,632 191,071 -21,389
(expe…
net
Total
other
income 34,966 -58,061 37,690 -177,115
(expe…
net
Income
before 1,743,… 1,020,9… 4,680,… 2,699,5…
income
taxes
Provi…
for 305,032 185,401 769,815 368,617
income
taxes
Net
income
from 1,438,… 835,545 3,911,… 2,330,9…
conti…
opera…
Loss
from
disco…
opera… — — — -99,444
net
of
income
taxes
Net 1,438,… 835,545 3,911,… 2,231,4…
income
Net
income
(loss)
per
share
attri…
to
Class
A and
Class
B
common
stock…
-
Basic:
Conti… $ 4.31 $ 2.47 $ 11.65 $ 6.87
opera…
Disco… — — — -0.29
opera…
Basic
net
income $ 4.31 $ 2.47 $ 11.65 $ 6.58
per
share
Net
income
(loss)
per
share
attri…
to
Class
A and
Class
B
common
stock…
-
Dilut…
Conti… $ 4.30 $ 2.45 $ 11.61 $ 6.80
opera…
Disco… — — — -0.29
opera…
Dilut…
net
income $ 4.30 $ 2.45 $ 11.61 $ 6.51
per
share
Weigh…
common
shares
used
to
compu…
net
income
(loss)
per
share
attri…
to
Class
A and
Class
B
common
stock…
Basic 333,628 338,531 335,595 338,990
Dilut… 334,769 340,974 336,829 342,668
5
AppLovin Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
Operating Activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 3,911,053 $ 2,231,495
Adjustments to
reconcile net income
to
net cash provided by
operating
activities:
Amortization,
depreciation and 100,418 162,042
write-offs
Goodwill impairment — 188,943
Stock-based
compensation, 253,138 130,167
excluding
cash-settled awards
Gain on divestiture,
net of transaction — -106,229
costs
Other -91,330 80,887
Changes in operating
assets and
liabilities:
Accounts receivable -571,015 -326,747
Prepaid expenses and 2,671 84,474
other assets
Accounts payable 88,410 2,069
Accrued and other -104,070 210,259
liabilities
Net cash provided by
operating 3,589,275 2,657,360
activities
Investing Activities
Proceeds from
divestiture, net of — 407,297
cash
divested
Purchase of
non-marketable — -20,178
equity
securities
Other investing -25,375 -27,863
activities
Net cash provided by
(used in) investing -25,375 359,256
activities
Financing Activities
Repurchases of -2,811,222 -1,774,329
common stock
Payment of
withholding taxes -55,818 -316,882
related to
net share settlement
Principal repayments — -200,000
of debt
Payments of licensed — -13,532
asset obligation
Proceeds from — 200,000
issuance of debt
Other financing -5,913 4,889
activities
Net cash used in -2,872,953 -2,099,854
financing activities
Effect of foreign
exchange rate on -4,312 8,726
cash
and cash equivalents
Net increase in cash
and cash
equivalents, 686,635 925,488
including cash from
discontinued
operations
Less: net decrease
in cash from — -44,381
discontinued
operations
Net increase in cash
and cash 686,635 969,869
equivalents
Cash and cash
equivalents at 2,487,096 697,030
beginning
of the period
Cash and cash
equivalents at end $ 3,173,731 $ 1,666,899
of the
period
Supplemental
disclosure of cash
flow
information:
Cash paid for $ 100,834 $ 101,023
interest
Cash paid for income
taxes, net of $ 926,151 $ 167,291
refunds
6
AppLovin Corporation
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flo
w
(In thousands)
The following table provides a reconciliation of net cash provided by operating
activities to Free Cash Flow for the periods presented:
Quarter Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by operating 1,428,842 1,053,422
activities
Less:
Purchase of property and -7,476 -105
equipment
Principal payments of finance -2,923 -4,318
leases
Free Cash Flow $ 1,418,443 $ 1,048,999
Net cash used in investing $ -17,687 $ -19,628
activities
Net cash used in financing $ -1,290,302 $ -560,260
activities
7
AppLovin Corporation
Reconciliation of Net Income to Adjusted EBITDA
(In thousands, except percentages)
The following table provides our Adjusted EBITDA and Adjusted EBITDA Margin and
a reconciliation of Net Income to Adjusted EBITDA for the periods presented:
Ni…
Qu… Mo…
En… En…
Se… Se…
30, 30,
20… 20… 20… 2…
──────────────────────────────────────────────────────────────────────────────
R… $ 2,… $ 1,… $ 5,… $ 3,…
N… 1,… 83… 3,… 2,…
i…
N… 66% 59% 66% 5…
m…
L…
f…
d…
o… — — — 99…
n…
of
i…
t…
N…
i…
f… 1,… 83… 3,… 2,…
c…
o…
N…
m…
f… 66% 59% 66% 6…
c…
o…
A…
as
f…
I… 51… 51… 15… 15…
e…
O…
(… -8… 9,… -1… 13…
e…
n…
P…
f… 30… 18… 76… 36…
i…
t…
A…
d… 34… 34… 10… 97…
a…
w…
N…
f… -2… -5… -5… -2…
e…
g…
S… 84… 33… 25… 12…
c…
T…
e… 15… 6,… 15… 16…
a…
o…
R…
c… -46 1,… 810 5,…
(…
A… $ 1,… $ 1,… $ 1,… $ 5,… $ 3,…
E…
A…
E… 84% 82% 84% 8…
m…
1 Negative amount reflects a reversal of amounts expensed in prior periods
8