Key Highlights

  • AppLovin (NASDAQ:APP) reported third-quarter Revenue of USD 2.18 billion against USD 1.41 billion a year earlier, an increase of about 55.5% (calculated), with Net Income of USD 1.44 billion versus USD 836 million.
  • Diluted earnings per share were USD 4.30 against USD 2.45, and the net Margin was 65.9% against 59.5% in the prior-year quarter.
  • Adjusted EBITDA, a non-GAAP measure, reached USD 1.84 billion against USD 1.16 billion, an Adjusted EBITDA margin of 84.3% against 82.4%.
  • Nine-month free Cash Flow was USD 3.57 billion against USD 2.64 billion, and the company repurchased 7.33 million Class A shares for USD 2.9 billion in that period.

Revenue Climbs 55.5% as Net Margin Reaches 65.9%

AppLovin (NASDAQ:APP) filed its third-quarter 10-Q on November 4, 2026. The company provides AI-powered Advertising solutions, including AppLovin Ads, MAX, Adjust and Wurl, and says AppLovin Ads makes up the vast majority of revenue. Clients range from indie developer studios to large global internet platforms. Revenue is the dynamically priced amount charged to advertisers, less consideration paid to publishers, while MAX earns a share of winning auction spend and Adjust earns subscription fees. Revenue was USD 2.18 billion, net income was USD 1.44 billion, and Diluted Earnings per Share were USD 4.30. Nine-month revenue was USD 5.95 billion against USD 3.82 billion, and nine-month diluted earnings were USD 11.61 against USD 6.51, which included a USD 0.29 loss from discontinued operations last year.

Stock Compensation Doubles Within an 84.3% Adjusted Margin

Adjusted EBITDA was USD 1.84 billion. The reconciliation shows stock-based compensation of USD 84.2 million, more than double USD 33.8 million, and a provision for income taxes of USD 305.0 million against USD 185.4 million. Other income, net, of USD 84.5 million, which Adjusted EBITDA strips out, helped GAAP net income, against an expense of USD 9.1 million a year ago. Interest expense was little changed at USD 51.1 million, against USD 51.4 million. Amortization, Depreciation and write-offs were USD 34.2 million. Readers should note that Adjusted EBITDA excludes stock compensation, taxes and other items, so it is not a substitute for GAAP profit.

USD 3.2 Billion of Cash and a Buyback With USD 394.3 Million Left

AppLovin (NASDAQ:APP) held USD 3.2 billion of cash and cash equivalents on September 30, 2026, and has a USD 1.0 billion unsecured revolving Credit facility. Nine-month Operating Cash Flow was USD 3.59 billion, and financing activities used USD 2.87 billion, largely share repurchases. Capital spending was small, with USD 9.3 million of property purchases, and investing activities used USD 25.4 million against a USD 359.3 million inflow last year. Only USD 394.3 million remained on the repurchase authorization, so future Buybacks require new approval. The weighted diluted share count fell to 334.8 million from 341.0 million. The filing ties performance to advertiser return targets and the Axon recommendation system. No guidance was in the extract.

Where Things Stand

AppLovin (NASDAQ:APP) reached an 84.3% Adjusted EBITDA margin because revenue rose about 55.5% while costs grew more slowly, leaving most incremental revenue as profit. GAAP margins tell a slightly different story at 65.9%, since Stock Compensation and taxes are real costs. Cash generation and buybacks were large, yet the repurchase authorization is almost used. Next markers are whether revenue growth holds, how stock compensation trends and whether the board refreshes the buyback program.