Applovin (APP) investor relations material

Executive summary

• Revenue for Q2 2026 reached $1.92 billion, up 53% year-over-year, driven by gaming, consumer verticals, and improved advertising performance, with net revenue per installation up 58% despite a 2% decrease in installation volume.

• Adjusted EBITDA for Q2 2026 was $1.61 billion, up 58% year-over-year, with margins expanding to 84%.

• Net income from continuing operations for Q2 2026 was $1.27 billion, a 64% increase from Q2 2025, reflecting strong operational leverage and margin expansion.

• Q2 results were just below guidance due to slower model improvements, but Q3 started strong with new model releases and continued momentum in both gaming and consumer segments.

• The company completed the divestiture of its Apps Business in June 2025, resulting in a $106 million pre-tax gain and a strategic focus on advertising solutions.

Financial highlights

• Revenue for the six months ended June 30, 2026 was $3.77 billion, up 56% year-over-year.

• Net income for the six months was $2.47 billion, up from $1.40 billion in the prior year period.

• Adjusted EBITDA for the first half of 2026 was $3.17 billion, up 62% year-over-year.

• Free cash flow for Q2 2026 was $863 million, with conversion below normal due to timing of international tax and interest payments.

• Basic and diluted EPS for Q2 2026 were $3.77 and $3.76, respectively.

Outlook and guidance

• Q3 2026 revenue expected between $2.055–$2.085 billion, up 46–48% year-over-year and 7–8% sequentially.

• Adjusted EBITDA guidance for Q3: $1.71–$1.74 billion, margin ~83%.

• Guidance reflects live model improvements, continued consumer scaling, seasonality, and higher compute costs.

• Free cash flow conversion expected to normalize to ~75% of Adjusted EBITDA for the full year.

• Management expects continued revenue growth driven by ongoing investments in AI-powered advertising solutions and expansion into new verticals such as e-commerce and connected TV.