AppLovin : First Quarter 2026 Financial Update
APP
Published on 05/06/2026 at 04:45 pm EDT - Modified on 05/06/2026 at 04:46 pm EDT
Revenue
($ millions)
$406 $504 $576
$678 $711 $835
$999
$1,159 $1,259
$1,405
$1,658
$1,842
Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126
1Q26: $1.84 billion (+59% Y/Y)
Net Income from Continuing Operations
($ millions)
Net Income from Continuing Operations Margin
33% 38% 42%
52%
60% 62%
$724
$772 $836
61% 59%
$1,102 66%
$1,206
65%
24% 29%
$99 $144 $188
$259 $301
$433 $596
Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126
1Q26: $1.21 billion (+67% Y/Y), a net margin of 65%
Adjusted EBITDA
($ millions) Adjusted EBITDA Margin
70% 71% 71% 72%
65%
$411 $484 $511
77% 77%
$770
$647
81% 81%
$938
$1,018
$1,158 82%
$1,399
84%
$1,557
85%
$264 $355
Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126
1Q26: $1.56 billion (+66% Y/Y), an 85% margin
Cash Flow from Operations and Shares Outstanding
($ and shares in millions) Cash Flow from Operations Ending Shares Outstanding
$832 $772
$1,053
$1,314 $1,291
348 336 340
$344
$230 $199
329
334 335
$393
$455
$551
$701
340
338 339
339
338
336
Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Please see "Non-GAAP Financial Measures" and the reconciliation from GAAP to non-GAAP measures later in this update.
AppLovin Corporation / 1Q26 Financial Update 2
To supplement our financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP"), this financial update includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA and Adjusted EBITDA margin. 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 (income) from discontinued operations, net of income taxes, interest expense, other (income) expense, net (excluding certain recurring items), provision for (benefit from) income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange (gain) loss, stock-based compensation, transaction-related expense, restructuring costs (benefits), as well as certain other items that we believe are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.
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.
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. 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.
(In thousands, except per share data) (Unaudited)
March 31,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 2,758,671
$ 2,487,096
Accounts receivable, net
1,958,023
1,819,366
Prepaid expenses and other current assets
130,881
124,330
Total current assets
4,847,575
4,430,792
Property and equipment, net
114,820
122,445
Goodwill
1,523,050
1,539,986
Intangible assets, net
368,996
396,714
Equity method investments
288,669
287,666
Other non-current assets
564,595
482,007
Total assets $ 7,707,705 $ 7,259,610
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 697,524
$ 746,977
Accrued and other current liabilities
796,858
586,811
Total current liabilities
1,494,382
1,333,788
Long-term debt
3,514,022
3,512,987
Other non-current liabilities
335,818
278,164
Total liabilities
5,344,222
5,124,939
Stockholders' equity:
Preferred Stock, $0.00003 par value-100,000 shares authorized, no shares
issued and outstanding as of March 31, 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, 336,294 (Class A 306,087, Class B 30,208, Class C nil) and 338,313 (Class A 307,955, Class B 30,358, Class C nil) shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
11
11
Additional paid-in capital
504,342
446,550
Accumulated other comprehensive loss
(67,767)
(46,987)
Retained earnings
1,926,897
1,735,097
Total stockholders' equity
2,363,483
2,134,671
Total liabilities and stockholders' equity
$ 7,707,705
$ 7,259,610
(In thousands, except per share data) (Unaudited)
Quarter Ended March 31,
2026
2025
Revenue
$ 1,842,449
$ 1,158,974
Costs and expenses:
Cost of revenue
203,632
151,680
Sales and marketing
60,751
59,383
Research and development
94,104
56,406
General and administrative
44,029
51,523
Total costs and expenses
402,516
318,992
Income from operations
1,439,933
839,982
Other income (expense):
Interest expense
(51,159)
(52,888)
Other income, net
42,634
7,512
Total other expense, net
(8,525)
(45,376)
Income before income taxes
1,431,408
794,606
Provision for income taxes
225,795
71,068
Net income from continuing operations
1,205,613
723,538
Loss from discontinued operations, net of income taxes
-
(147,119)
Net income
$ 1,205,613
$ 576,419
Net income (loss) per share attributed to Class A and Class B common stockholders - Basic:
Continuing operations
$ 3.57
$ 2.13
Discontinued operations
-
(0.43)
Basic net income per share
$ 3.57
$ 1.70
Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted:
Continuing operations
$ 3.56
$ 2.10
Discontinued operations
-
(0.43)
Diluted net income per share
$ 3.56
$ 1.67
Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders:
Basic
337,399
339,837
Diluted
338,729
344,878
(In thousands) (Unaudited)
Quarter Ended March 31,
2026
2025
Operating Activities
Net income
$ 1,205,613
$ 576,419
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization, depreciation and write-offs
33,665
79,887
Goodwill impairment
-
188,943
Stock-based compensation, excluding cash-settled awards
83,372
61,281
Other
(16,478)
8,086
Changes in operating assets and liabilities:
Accounts receivable
(138,098)
(167,382)
Prepaid expenses and other assets
(9,827)
(51,861)
Accounts payable
(49,556)
32,545
Accrued and other liabilities
182,702
103,794
Net cash provided by operating activities
1,291,393
831,712
Investing Activities
Purchase of non-marketable equity securities
-
(18,678)
Other investing activities
(5,247)
(3,986)
Net cash used in investing activities
(5,247)
(22,664)
Financing Activities
Repurchases of common stock
(981,723)
(1,000,911)
Payment of withholding taxes related to net share settlement
(26,874)
(185,667)
Payments of licensed asset obligation
-
(13,532)
Proceeds from issuance of debt
-
200,000
Other financing activities
(3,635)
(2,107)
Net cash used in financing activities
(1,012,232)
(1,002,217)
Effect of foreign exchange rate on cash and cash equivalents
(2,339)
2,782
Net increase (decrease) in cash and cash equivalents, including cash from discontinued operations
271,575
(190,387)
Less: net decrease in cash from discontinued operations
-
(35,873)
Net increase (decrease) in cash and cash equivalents
271,575
(154,514)
Cash and cash equivalents at beginning of the period
2,487,096
697,030
Cash and cash equivalents at end of the period
$ 2,758,671
$ 542,516
(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:
Quarter Ended
2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26
Revenue
$406,063 $504,452 $576,489 $678,370 $ 711,015 $835,186 $999,487 $1,158,974 $1,258,754 $1,405,045 $1,657,944 $1,842,449
Net income
80,357 108,639 172,233 236,183 309,969 434,420 599,204 576,419 819,531 835,545 1,102,256 1,205,613
Net margin
20% 22% 30% 35% 44% 52% 60% 50% 65% 59% 66% 65%
Loss (income) from discontinued operations, net of
18,393 35,303 16,229 23,174 (8,987) (1,347) (3,092) 147,119 (47,675) - - -
Net income from continuing
98,750 143,942 188,462 259,357 300,982 433,073 596,112 723,538 771,856 835,545 1,102,256 1,205,613
Net margin from continuing
24 % 29 % 33 % 38 % 42 % 52 % 60 % 62 % 61 % 59 % 66 % 65 %
Adjusted as follows:
Interest expense
50,451 78,051 71,042 73,925 74,418 74,937 93,929 52,888 51,409 51,429 51,290 51,159
Other (income) expense, net
(15,218) 281 19,398 (3,014) (8,763) (3,778) (7,841) (8,644) 12,798 9,079 (28,927) (41,360)
Provision for (benefit from)
14,814 35 19,860 32,253 16,894 34,656 (61,384) 71,068 112,148 185,401 151,098 225,795
Amortization, depreciation
29,489 29,209 31,323 30,917 31,242 32,369 34,263 31,946 31,064 34,978 32,736 33,665
Non-operating foreign
2,263 192 (1,408) 999 412 (2,479) 2,710 (320) (1,210) (570) (1,849) (1,266)
Stock-based compensation
81,938 103,122 81,933 88,944 93,559 77,402 97,526 59,115 34,552 33,767 80,524 83,469
Transaction-related expense1
247 231 52 369 485 26 5 4,583 5,097 6,565 11,334 (49)
Restructuring costs (benefits)1
1,024 - - - 1,936 811 14,512 3,598 633 1,460 217 (107)
Total adjustments
165,008 211,121 222,200 224,393 210,183 213,944 173,720 214,234 246,491 322,109 296,423 351,306
Adjusted EBITDA
$263,758 $355,063 $410,662 $483,750 $ 511,165 $647,017 $769,832 $937,772 $1,018,347 $1,157,654 $1,398,679 $1,556,919
income taxes operations operations
income taxes and write-offs
exchange (gain) loss
Adįusted EBITDA margin 65 % 70 % 71 % 71 % 72 % 77 % 77 % 81 % 81 % 82 % 84 % 85 %
1 Negative amount reflects a reversal of amounts expensed in prior periods
APPLO/I N.COM
Disclaimer
Applovin Corporation published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 20:40 UTC.