10-Q · May 6, 2026
AppLovin's Q1 2026 results reflect strong growth, with revenue reaching $1.84 billion, a 59% increase from the prior year, and EPS of $3.56, surpassing expectations. The company generated $1.29 billion in operating cash…
Earnings analysis · 10-Q
APP earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
AppLovin delivered a strong third quarter, with revenue of $2.185 billion and diluted EPS of $4.30, representing approximately 54.9% and 75.5% year-over-year growth, respectively, while beating consensus by 5.3% on…
Read full summary
AppLovin delivered a strong third quarter, with revenue of $2.185 billion and diluted EPS of $4.30, representing approximately 54.9% and 75.5% year-over-year growth, respectively, while beating consensus by 5.3% on revenue and 7.2% on EPS. Free cash flow increased to $1.418 billion, up approximately 63.2% sequentially, supporting continued repurchases and a newly expanded $3.6 billion authorization. The principal negatives are substantial debt obligations and newly disclosed securities and derivative litigation, while the 4Q26 revenue outlook of $2.365 billion to $2.395 billion cannot be assessed versus a prior comparable outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.3
What stood out
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Revenue growth accelerated
Third-quarter revenue was $2.185 billion, up from $1.92 billion in 2Q26, an increase of approximately 13.8%, and up from $1.41 billion in 3Q25, an increase of approximately 54.9%. Revenue exceeded the $2.075 billion consensus estimate by approximately 5.3%.
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EPS materially beat estimates
Diluted EPS was $4.30, up from $3.76 in 2Q26, or approximately 14.4%, and up from $2.45 in 3Q25, or approximately 75.5%. EPS exceeded the $4.01 consensus estimate by approximately 7.2%.
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Free cash flow strengthened
Free cash flow was $1.418 billion, compared with $869 million in 2Q26 and $1.05 billion in 3Q25, increases of approximately 63.2% and 35.0%, respectively.
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Fourth-quarter outlook provided
Management issued 4Q26 revenue guidance of $2.365 billion to $2.395 billion. The filing materials do not include a prior comparable fourth-quarter revenue outlook against which to measure a raise or reduction.
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Share repurchases continued
The company repurchased 4.054 million shares during the three months ended September 30, 2026, including 1.308 million shares in September at an average price of $311.44 per share.
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Repurchase authorization expanded
In October 2026, the board authorized an approximately $3.2 billion increase to the repurchase program, leaving approximately $3.6 billion available for future repurchases.
What to watch
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New securities litigation
The company disclosed a new securities class action filed on September 16, 2026, alleging materially false or misleading statements concerning advertising-model improvement and the development timeline for an ad-generation tool. The alleged class period runs from February 12, 2026 through August 5, 2026, and the company stated that potential loss cannot reasonably be estimated.
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Additional derivative litigation
A new shareholder derivative complaint was filed on October 7, 2026 against the 2026 D&O Parties, alleging claims under Sections 10(b), 14(a), and 20(a), among others, relating to advertising-model improvement and an ad-generation tool. The company stated that the ultimate outcome and potential loss cannot reasonably be estimated.
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Material debt obligations
As of September 30, 2026, the company had $3.6 billion of senior unsecured notes outstanding and $1.0 billion of revolving-credit commitments, although it had no borrowings under the revolving facility. Debt service, refinancing, covenant compliance, and potential ratings changes could constrain liquidity and financial flexibility.
Management's outlook
The company provided 4Q26 revenue guidance of $2.365 billion to $2.395 billion, but the filing materials do not provide a prior comparable 4Q26 outlook, so the direction cannot be classified as raised, maintained, or lowered.
Earlier filings 4
10-K · February 19, 2026
AppLovin reported a record Q4 2025 with revenue of $1.66B and very high margins (Q4 gross 88.9%, operating 76.9%), capping a 2025 run-rate of ~$5.81B (Q1–Q4 2025: $1.48B, $1.26B, $1.41B, $1.66B). The company emphasizes…
10-Q · November 5, 2025
AppLovin reported Q3 2025 revenue of $1,405,045,000 (up 68.2% YoY from $835,186,000 and up ~11.6% sequentially from Q2 2025), GAAP diluted EPS of $2.45 (vs $1.24 YoY and $2.39 in Q2 2025), and operating income of…
10-Q · November 6, 2024
AppLovin reported a strong Q3 with revenue of $1,198.2M (up 38.7% YoY) driven by a 65.6% increase in Software Platform revenue to $835.2M; operating income rose to $534.9M and diluted EPS to $1.25. Cash and operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.