← Who reports today · Communication Services
APP · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
Extraordinary software economics — revenue up 53% with a 77.7% operating margin and a 66% net margin, free cash flow of $863M in a single quarter, and guidance implying ~40% growth continues; doubled R&D on AI models is the only cost line growing fast.
Net Income
$1,267M
up 64% y/y
Revenue
$1,924M
up 53% y/y
Operating Profit
$1,494M
up 56% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Revenue | $1,924 · +53% |
| Cost of Revenue | $226 · +46% |
| Sales & Marketing | $63 · +35% |
| R&D | $100 · +127% · AI model investment |
| G&A | $40 · -27% |
| Operating Profit | $1,494 · +56% · 77.7% margin |
| Other Income, net | $62 · vs −$22 · Returns on $3.1B cash |
| Interest Expense | $51 · flat · On $3.5B long-term debt |
| Pretax Income | $1,506 · +70% |
| Income Taxes | $239 · ETR 15.9% |
| Net Income | $1,267 · +64% · Diluted EPS $3.76 · 66% net margin |
Verdict: extraordinary software economics — revenue up 53% with a 77.7% operating margin and a 66% net margin, free cash flow of $863M in a single quarter, and guidance implying ~40% growth continues; doubled R&D on AI models is the only cost line growing fast.
OCF $869M · FCF $863M (≈45% of revenue) · buybacks $551M in Q2 (1.1M shares) · cash $3.1B vs debt $3.5B · 3Q26 guidance: revenue $2,055–2,085M, adj. EBITDA margin 83%.
Source and notation
* marks non-cash / ≈ estimated. Advertising-only company after the 2025 apps divestiture. Source: AppLovin press release, 8-K EX-99.1 (SEC EDGAR).
Open as an image: APP, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
Cite / embed this chart
Free to use in articles, research and social posts with credit to Who Reports Today and a link — licensed under CC BY 4.0 (terms).
Chart: “APP Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/app/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/app/q2-2026"><img src="https://whoreportstoday.com/t/app/q2-2026/sankey.png" alt="APP Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/app/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
https://whoreportstoday.com/t/app/q2-2026/sankey.png
<a href="https://whoreportstoday.com/t/app/q2-2026">APP Q2 2026 earnings chart (Who Reports Today)</a>
This is an archived report: the image at this link won’t change. If you change the chart (crop, translate), say so in the credit. Company logos and trademarks are not covered by the license.
- This is now a pure advertising platform: the mobile-games (apps) business was divested in 2025, so the prior-year quarter's $48M of discontinued-operations income makes total net income growth (+55%) look slower than continuing-operations growth (+64%).
- R&D spending more than doubled (+127% to $100M) — the investment in AI advertising models — while G&A fell 27%; total costs still consumed only 22% of revenue.
- Adjusted EBITDA margin reached 84% (was 81%); GAAP operating margin 77.7% — among the highest of any large public company.
- Other income swung to +$62M from a $22M loss a year ago, largely returns on the growing $3.1B cash pile.
- Free cash flow of $863M is ≈45% of revenue; the company returned $551M via buybacks in the quarter and shares outstanding fell to 335M.
- Effective tax rate was 15.9%; cash taxes are catching up — $640M paid in 1H 2026 vs $101M a year earlier.
- 3Q26 guidance of $2,055–2,085M revenue (+≈40% y/y) at an 83% adjusted EBITDA margin implies the growth machine hasn't slowed.
What distorts the picture in this report and what to watch beyond the headlines.
APP — AppLovin develops software and technology platforms for mobile app developers and advertisers.
Its products include app monetization tools and performance advertising solutions, with the company based in Palo Alto, California.
More reports: CHTR · Q2 2026 · CMCSA · Q3 2026 · DIS · Q3 FY2026 · ECHO · Q2 2026 · FOXA · Q1 FY2027 · GOOGL · Q3 2026 · LYV · Q2 2026 · META · Q3 2026 · NFLX · Q3 2026 · NWSA · Q4 FY2026 · all reports