AppLovin Tops Revenue Estimates at $2.18 Billion as Net Income Rises 72%

AppLovin (Nasdaq: APP) reported third-quarter revenue of $2.18 billion, above the $2.07 billion consensus estimate of analysts, and diluted earnings per share of $4.30 on a GAAP basis, up from $2.45 a year earlier, in an 8-K filed Wednesday, Nov. 4.

Revenue rose 55% from $1.41 billion a year earlier. Net income climbed 72% to $1.44 billion, a net income margin of 66%. The company said the results were a record for both revenue and earnings in a third quarter.

Profit and cash flow

Adjusted EBITDA was $1.84 billion, up 59% from a year earlier, with an adjusted EBITDA margin of 84%, compared with 82% in the third quarter of 2025. Net cash from operating activities was $1.4 billion for the quarter, and free cash flow was $1.42 billion.

For the first nine months of 2026, revenue was $5.95 billion, up 56%, and net income was $3.91 billion, up 75%.

Share repurchases

During the quarter, AppLovin repurchased and withheld 4.1 million Class A shares for a total cost of $1.4 billion. At the end of the quarter it had 331 million Class A and Class B shares outstanding.

The board approved an increase of $3.2 billion to the share repurchase authorization, bringing the total current authorization to $3.6 billion as of the end of October.

Fourth-quarter outlook

The company guided fourth-quarter revenue to between $2.365 billion and $2.395 billion. That range sits above the $2.26 billion analysts expected for the quarter ending Dec. 31. Guidance for adjusted EBITDA was $1.995 billion to $2.025 billion, with an adjusted EBITDA margin of 84% to 85%.

Analysts expect full-year 2026 EPS of $15.64 on revenue of $8.08 billion, according to the consensus estimate.

In a separate Item 5.07 disclosure in the same filing, holders of about 67% of the company's voting power adopted resolutions by written consent on Oct. 29 to reincorporate AppLovin from Delaware to Nevada. The company plans to carry out the change no earlier than 20 calendar days after it begins mailing an information statement on Schedule 14C.