AppLovin Q3 2026 earnings review

Revenue rose 55.5% and EPS beat Zacks by 9.1%, a clear beat.

AppLovin · Q3 2026 · Published Nov 4, 2026 · By DeepCell AI · Sources

AppLovin Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · AppLovin (APP) Q3 2026 earnings review

Revenue rose 55.5% and EPS beat Zacks by 9.1%, a clear beat

  1. 1.Revenue rose 55.5% to $2.18B, 5.0% above Zacks
  2. 2.Diluted EPS of $4.30 beat the Zacks estimate of $3.94
  3. 3.Adjusted EBITDA rose 59.1% to $1.84B, an 84% margin
  4. 4.Q4 revenue guide midpoint of $2.38B is 8.9% above Q3
  5. 5.Q3 buybacks of about $1.40B; authorization raised to $3.60B
  6. 6.Shares closed at $271.75 on Nov 4 and traded at $325.53 after hours

Note: After-hours price at 4:27 PM ET on Nov 4, not a close. No Q4 consensus was found, so guidance is not scored.Source: AppLovin Form 8-K, Nov 4, 2026; Zacks via Finviz; Yahoo Finance prices, Nov 3–4, 2026

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2 · Executive summary

Q3 EPS beat Zacks by 9.1% and revenue beat by 5.0%

Q3 2026 results vs. consensus (Zacks via Finviz, Nov 3; 24/7 Wall St., Nov 4, 2026)

MetricActualConsensusVarianceResult
Revenue (Zacks)$2,185M$2,080M+$105M / +5.0%Beat
Diluted EPS (Zacks)$4.30$3.94+$0.36 / +9.1%Beat
Revenue (24/7 Wall St.)$2,185M$2,070M+$115M / +5.5%Beat
Diluted EPS (24/7 Wall St.)$4.30$4.03+$0.27 / +6.7%Beat

Share price, Nov 3–4, 2026 (Yahoo Finance)

AppLovin (NASDAQ)Nov 3 closeNov 4 closeAfter-hoursAfter-hours move
APP$245.51$271.75$325.53+19.8%

After-hours price at 4:27 PM ET on Nov 4, not a close. The move is versus the Nov 4 close.

Note: AppLovin reports GAAP EPS only. 24/7 Wall St. does not name its estimate provider.Source: AppLovin Form 8-K, Nov 4, 2026; Zacks via Finviz, Nov 3, 2026; 24/7 Wall St., Nov 4, 2026; Yahoo Finance prices

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3 · Q3 results vs. consensus

Q4 revenue guide midpoint of $2.38B is 8.9% above Q3, a firm outlook

Q4 2026 guidance (press release, Nov 4, 2026)

MetricLowHighMidpointvs. Q3 2026
Revenue ($M)$2,365M$2,395M$2,380M+$195M
Adjusted EBITDA ($M)$1,995M$2,025M$2,010M+$168M
Adjusted EBITDA margin84%85%84.5%+13 bps

Q3 2026 base for comparison

MetricQ3 2026Q4 midpoint vs. Q3
Revenue ($M)$2,185M+8.9%
Adjusted EBITDA ($M)$1,842M+9.1%

Note: Midpoint margin is the EBITDA midpoint over the revenue midpoint. No Q4 consensus was found, so it is not scored.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

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4 · Q4 2026 guidance

Revenue rose 55.5% and net income rose 72.2%, a strong quarter

  1. Revenue kept compoundingRevenue rose 55.5% to $2,185M.
  2. Operating margin expandedOperating margin rose to 78.2% from 76.8%.
  3. EPS outgrew net incomeDiluted EPS rose 75.5% as the share count fell.

Key figures

$M unless notedQ3 2025Q3 2026YoY
Revenue$1,405M$2,185M55.5%
Income from operations$1,079M$1,709M58.4%
Net income$836M$1,439M72.2%
Adjusted EBITDA$1,158M$1,842M59.1%
Diluted EPS$2.45$4.3075.5%

Note: Adjusted EBITDA is AppLovin’s own non-GAAP measure.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

5

5 · Q3 key financials

6 · Cost structure

Revenue added $780M, far above the $150M rise in costs

Income from operations bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $1,079M$M · Revenue: $780M$M · Cost of revenue: -$66M$M · S&M: -$20M$M · R&D: -$58M$M · G&A: -$6M$M · Q3 2026: $1,709MQ3 2025RevenueCost ofrevenueS&MR&DG&AQ3 2026$0.0M$500.0M$1,000.0M$1,500.0M$2,000.0M$1,079M$780M-$66M-$20M-$58M-$6M$1,709M
R&D took $58M of the cost increase

Note: R&D is research and development. Cost steps are shown as reductions to operating income.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

7

7 · Operating income bridge

Q3 buybacks of about $1.40B matched most of free cash flow

Share repurchases and share count

Q3 2026 unless noted

MetricValue
Repurchases and withholdings, Q3$1,400M
Shares repurchased and withheld, Q3 (M)4.1
Repurchases of common stock, 9M 2026$2,811M
Shares outstanding, Sep 30 (M)331
Authorization, end of October$3,600M
The board added $3.20B to the repurchase authorization

Note: Q3 figure includes tax withholdings on vested equity awards, as the company reports it.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

8

8 · Capital returns

Net income rose $603M to $1,439M, led by operations

GAAP net income bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $836M$M · Operating income: $630M$M · Interest: $0M$M · Other income: $93M$M · Income tax: -$120M$M · Q3 2026: $1,439MQ3 2025OperatingincomeInterestOtherincomeIncome taxQ3 2026$0.0M$500.0M$1,000.0M$1,700.0M$836M$630M$0M$93M-$120M$1,439M
Other income swung to $86M

Note: Income tax step is the change in the tax provision, shown as a reduction.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

9

9 · Net income bridge

Adjusted EBITDA margin rose 193 bps to 84.3%, a high margin

Margins to revenue

%, Q3 2025 vs. Q3 2026

Operating margin · Q3 2025: 76.8%Operating margin · Q3 2026: 78.2%Adjusted EBITDA margin · Q3 2025: 82.4%Adjusted EBITDA margin · Q3 2026: 84.3%Net margin · Q3 2025: 59.5%Net margin · Q3 2026: 65.9%Q3 2025Q3 20260%25%50%75%100%76.8%78.2%82.4%84.3%59.5%65.9%
Operating margin rose 143 bps to 78.2%

Note: Adjusted EBITDA margin is Adjusted EBITDA to revenue.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

10

10 · Margin analysis

Free cash flow rose 35.2% to $1,418M, a strong cash quarter

Operating cash flow to free cash flow

$M, Q3 2026

$M · Operating cash flow: $1,429M$M · Property, equipment: -$7M$M · Finance leases: -$3M$M · Free cash flow: $1,418MOperating cashflowProperty,equipmentFinance leasesFree cash flow$0.0M$500.0M$1,000.0M$1,600.0M$1,429M-$7M-$3M$1,418M
FCF was 77% of Adjusted EBITDA

Note: FCF is operating cash flow less property, equipment and finance lease payments, as AppLovin defines it.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

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11 · Free cash flow

12 · Cost ratios

13 · Balance sheet and debt

Q4 guidance assumes an 84% to 85% EBITDA margin, little room to slip

Indicator
What to watch
Implication
Latest reading
Revenue growth
Q4 guide delivery
Midpoint +8.9% vs Q3
Q3 revenue +55.5% YoY
R&D spend
Margin pressure
Fastest-growing cost line
4.7% of revenue in Q3
Stock-based pay
GAAP profit gap
Excluded from Adjusted EBITDA
$84M in Q3
Receivables
Cash conversion
Collections vs growth
$2.39B at Sep 30

Note: R&D is research and development. These are analytical watch points, not company targets.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

14

14 · Key risks to guidance

Appendix: profit and margin detail

ClaimEvidenceCalculation
Gross margin87.6% to 89.0%Revenue less cost of revenue
Net margin rose59.5% to 65.9%Net income to revenue
Effective tax rate18.2% to 17.5%Tax provision to pretax income
Pretax income rose$1,021M to $1,744MStatements of operations
Interest expense was flat$51M to $51MStatements of operations
Diluted shares fell341.0M to 334.8MWeighted average

Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

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15 · Appendix: Profit detail

Appendix: Adjusted EBITDA add-backs

ClaimEvidenceCalculation
Stock-based compensation$34M to $84MLargest add-back
Stock-based pay to revenue2.4% to 3.9%Share of revenue
Amortization and depreciation$35M to $34MIncludes write-offs
Transaction-related expense$7M to $15MReconciliation table
Other income removed$9M to ($85M)Excludes recurring items

Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

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16 · Appendix: EBITDA items

Appendix: cash flow detail

ClaimEvidenceCalculation
Operating cash flow rose$1,053M to $1,429MQ3 cash flow
Property and equipment$0.1M to $7.5MPurchases
Finance lease payments$4.3M to $2.9MPrincipal payments
FCF to Adjusted EBITDA91% to 77%Cash conversion
Q3 buybacks to FCF99%Repurchases over free cash flow

Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

17

17 · Appendix: Cash detail

18 · Appendix: Balance sheet

Appendix: cost and Adjusted EBITDA detail

GAAP costs and expenses, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Cost of revenue$175M$241M37.7%
Sales and marketing$49M$69M41.6%
Research and development$44M$102M132.2%
Total costs and expenses$326M$476M45.9%

Net income to Adjusted EBITDA, $M

$MQ3 2025Q3 2026
Net income$836M$1,439M
Provision for income taxes$185M$305M
Stock-based compensation$34M$84M
Amortization and depreciation$35M$34M
Adjusted EBITDA$1,158M$1,842M

Note: Other EBITDA items are interest, other income, FX, transaction and restructuring costs.Source: AppLovin Form 8-K, Nov 4, 2026; analysis of company data

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19 · Appendix: Costs and EBITDA

Appendix: sources

  • Filing: AppLovin Form 8-K, Nov 4, 2026 (accepted 4:08 PM ET) — https://www.sec.gov/Archives/edgar/data/1751008/000175100826000068/0001751008-26-000068-index.htm
  • Press release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/1751008/000175100826000068/exhibit991-3q26earningspre.htm
  • Press release on Business Wire, Nov 4, 2026 — https://www.businesswire.com/news/home/20261104553587/en/AppLovin-Announces-Third-Quarter-2026-Financial-Results
  • Q3 consensus: Zacks via Finviz, Nov 3, 2026 — https://finviz.com/news/414559/earnings-preview-applovin-stock-bounces-off-52-week-lows
  • Q3 consensus check: 24/7 Wall St., Nov 4, 2026, 4:13 PM ET — https://247wallst.com/investing/2026/11/04/live-will-applovin-crush-tonights-q3-earnings-after-the-bell/
  • Share price: Yahoo Finance APP, Nov 3 and Nov 4 closes and Nov 4 after-hours (4:27 PM ET) — https://finance.yahoo.com/quote/APP/
  • No Q4 consensus was found, so guidance is not scored.
  • Times are US Eastern. The after-hours price is not a close.

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20

20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from AppLovin's Form 8-K of November 4, 2026 (Exhibit 99.1). Consensus estimates (Zacks, 24/7 Wall St.) and share prices (Yahoo Finance) are third-party data, credited on the sources page. We have not independently verified third-party data.

Basis of presentation. Figures are as reported for the quarters ended September 30, 2026 and 2025, in US dollars.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Non-GAAP measures. Adjusted EBITDA, Adjusted EBITDA margin and free cash flow follow AppLovin's own definitions and are reconciled to GAAP in its release. They may not be comparable with other companies' measures.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by AppLovin Corporation. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings.

Date of analysis. The analysis reflects information available on the evening of November 4, 2026, US Eastern time.

Built with DeepCell / deepcell.net

21

21 · Disclosures

Sources

Not investment advice; no rating or price target.

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