AppLovin Q3 Earnings Rise; Guidance Tops Estimates
AppLovin Q3 earnings posted record revenue and strong adjusted EBITDA with buybacks expanded and Q4 guidance raised, likely boosting buyback flows.
KEY TAKEAWAYS
- Reported record Q3 revenue of $2.2 billion and net income of $1.4 billion.
- Adjusted EBITDA rose to $1.8 billion, implying an 84.0% adjusted-EBITDA margin.
- Board approved $3.2 billion more buybacks, lifting authorization to $3.6 billion and issued Q4 guidance above estimates.
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AppLovin reported record third-quarter earnings for the period ended September 30, 2026, in an investor-relations release on November 4, 2026. The company also issued fourth-quarter guidance above published analyst estimates and expanded its share-repurchase authorization.
Record Third-Quarter Results and Cash Generation
AppLovin posted revenue of $2.185 billion, a 55.0% increase year over year, and net income of $1.439 billion, up 72.0%. Adjusted EBITDA, a proxy for operating profit, rose 59.0% to $1.842 billion, implying an adjusted-EBITDA margin near 84.0%. Diluted GAAP earnings per share were $4.30, compared with $2.45 a year earlier, producing a net-income margin of about 66.0%. The company said, "AppLovin posted record third quarter earnings."
For the first nine months, revenue totaled $5.951 billion, up 56.0% from $3.823 billion in the year-earlier period. Net income rose 75.0% to $3.911 billion, while adjusted EBITDA increased 61.0% to $5.013 billion.
Operating cash flow and free cash flow each reached approximately $1.4 billion for the quarter, roughly matching the amount spent on share repurchases.
Buybacks and Fourth-Quarter Outlook
During the quarter, AppLovin repurchased or withheld 4.1 million Class A shares for $1.4 billion. Shares outstanding totaled 331 million Class A and Class B shares at September 30.
The board approved an additional $3.2 billion in share-repurchase authority, bringing total authorization to $3.6 billion as of the end of October 2026.
For the quarter ending December 31, 2026, the company guided revenue between $2.365 billion and $2.395 billion and adjusted EBITDA between $1.995 billion and $2.025 billion. These ranges imply an adjusted-EBITDA margin of roughly 84.0% to 85.0% and exceed published analyst estimates.
The quarter’s strong cash generation, expanded buyback authorization, and raised guidance position AppLovin to continue delivering topline growth and margin strength while increasing capital returns.
