Earnings release
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$1 88 $259 $301 $433 $596 $724 $772 $836 $1 ,1 02 $1 ,206 $1 ,267 $1 ,439 33% 38% 42% 52% 60% 62% 61 % 59% 66% 65% 66% 66% Q423 Q1 24 Q224 Q324 Q424 Q1 25 Q225 Q325 Q425 Q1 26 Q226 Q326 Margin Net Income from Continuing Operations ($ millions) 3Q26 Financial Overview Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Please see “Non-GAAP Financial Measures” and the reconciliation from GAAP to non-GAAP measures later in this update. AppLovin Corporation / 3Q26 Financial Update 2 $41 1 $484 $51 1 $647 $770 $938 $1 ,01 8 $1 ,1 58 $1 ,399 $1 ,557 $1 ,61 4 $1 ,842 71 % 71 % 72% 77% 77% 81 % 81 % 82% 84% 85% 84% 84% Q423 Q1 24 Q224 Q324 Q424 Q1 25 Q225 Q325 Q425 Q1 26 Q226 Q326 Adjusted EBITDA ($ millions) Adjusted EBITDA $576 $678 $71 1 $835 $999 $1 ,1 59 $1 ,259 $1 ,405 $1 ,658 $1 ,842 $1 ,924 $2,1 85 Q423 Q1 24 Q224 Q324 Q424 Q1 25 Q225 Q325 Q425 Q1 26 Q226 Q326 $344 $393 $455 $551 $701 $832 $772 $1 ,053 $1 ,31 4 $1 ,291 $869 $1 ,429 340 329 334 335 340 338 339 339 338 336 335 331 Q423 Q1 24 Q224 Q324 Q424 Q1 25 Q225 Q325 Q425 Q1 26 Q226 Q326 Cash Flow from Operations and Shares Outstanding ($ and shares in millions) Cash Flow from Operations Ending Shares Outstanding Net Income from Continuing Operations Margin Revenue ($ millions) 3Q26: $2.18 billion (+55% Y/Y) 3Q26: $1.44 billion (+72% Y/Y), a net margin of 66% 3Q26: $1.84 billion (+59% Y/Y), an 84% margin
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Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), this financial update includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA and Adjusted EBITDA margin. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP measure can be found below. We define Adjusted EBITDA for a particular period as net income, adjusted for loss (income) from discontinued operations, net of income taxes, interest expense, other (income) expense, net (excluding certain recurring items), provision for (benefit from) income taxes, amortization, depreciation and write- offs and as further adjusted for non-operating foreign exchange (gain) loss, stock-based compensation, transaction-related expense and other, restructuring costs (benefits), as we believe these items are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period. We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and operating performance, as they are similar to measures reported by our public competitors and are regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. AppLovin Corporation / 3Q26 Financial Update 3
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AppLovin Corporation Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) September 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 3,173,731 $ 2,487,096 Accounts receivable, net 2,388,782 1,819,366 Prepaid expenses and other current assets 141,842 124,330 Total current assets 5,704,355 4,430,792 Property and equipment, net 113,342 122,445 Goodwill 1,516,423 1,539,986 Intangible assets, net 336,185 396,714 Equity method investments 298,333 287,666 Other non-current assets 614,111 482,007 Total assets $ 8,582,749 $ 7,259,610 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 838,172 $ 746,977 Accrued and other current liabilities 661,182 586,811 Total current liabilities 1,499,354 1,333,788 Long-term debt 3,516,136 3,512,987 Other non-current liabilities 268,557 278,164 Total liabilities 5,284,047 5,124,939 Stockholders’ equity: Preferred Stock, $0.00003 par value—100,000 shares authorized, no shares issued and outstanding as of September 30, 2026 and December 31, 2025 — — Class A, Class B, and Class C Common Stock, $0.00003 par value—1,850,000 (Class A 1,500,000, Class B 200,000, Class C 150,000) shares authorized, 331,322 (Class A 301,258, Class B 30,064, Class C nil) and 338,313 (Class A 307,955, Class B 30,358, Class C nil) shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 11 11 Additional paid-in capital 649,790 446,550 Accumulated other comprehensive loss (76,530) (46,987) Retained earnings 2,725,431 1,735,097 Total stockholders’ equity 3,298,702 2,134,671 Total liabilities and stockholders’ equity $ 8,582,749 $ 7,259,610 AppLovin Corporation / 3Q26 Financial Update 4
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AppLovin Corporation Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Quarter Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenue $ 2,184,815 $ 1,405,045 $ 5,950,950 $ 3,822,773 Costs and expenses: Cost of revenue 240,765 174,855 670,198 481,611 Sales and marketing 68,803 48,575 192,948 154,875 Research and development 101,817 43,852 295,822 144,290 General and administrative 64,462 58,756 148,804 165,326 Total costs and expenses 475,847 326,038 1,307,772 946,102 Income from operations 1,708,968 1,079,007 4,643,178 2,876,671 Other income (expense): Interest expense (51,066) (51,429) (153,381) (155,726) Other income (expense), net 86,032 (6,632) 191,071 (21,389) Total other income (expense), net 34,966 (58,061) 37,690 (177,115) Income before income taxes 1,743,934 1,020,946 4,680,868 2,699,556 Provision for income taxes 305,032 185,401 769,815 368,617 Net income from continuing operations 1,438,902 835,545 3,911,053 2,330,939 Loss from discontinued operations, net of income taxes — — — (99,444) Net income $ 1,438,902 $ 835,545 $ 3,911,053 $ 2,231,495 Net income (loss) per share attributed to Class A and Class B common stockholders - Basic: Continuing operations $ 4.31 $ 2.47 $ 11.65 $ 6.87 Discontinued operations — — — (0.29) Basic net income per share $ 4.31 $ 2.47 $ 11.65 $ 6.58 Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted: Continuing operations $ 4.30 $ 2.45 $ 11.61 $ 6.80 Discontinued operations — — — (0.29) Diluted net income per share $ 4.30 $ 2.45 $ 11.61 $ 6.51 Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders: Basic 333,628 338,531 335,595 338,990 Diluted 334,769 340,974 336,829 342,668 AppLovin Corporation / 3Q26 Financial Update 5
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AppLovin Corporation Consolidated Statements of Cash Flows (In thousands) (Unaudited) Nine Months Ended September 30, 2026 2025 Operating Activities Net income $ 3,911,053 $ 2,231,495 Adjustments to reconcile net income to net cash provided by operating activities: Amortization, depreciation and write-offs 100,418 162,042 Goodwill impairment — 188,943 Stock-based compensation, excluding cash-settled awards 253,138 130,167 Gain on divestiture, net of transaction costs — (106,229) Other (91,330) 80,887 Changes in operating assets and liabilities: Accounts receivable (571,015) (326,747) Prepaid expenses and other assets 2,671 84,474 Accounts payable 88,410 2,069 Accrued and other liabilities (104,070) 210,259 Net cash provided by operating activities 3,589,275 2,657,360 Investing Activities Proceeds from divestiture, net of cash divested — 407,297 Purchase of non-marketable equity securities — (20,178) Other investing activities (25,375) (27,863) Net cash provided by (used in) investing activities (25,375) 359,256 Financing Activities Repurchases of common stock (2,811,222) (1,774,329) Payment of withholding taxes related to net share settlement (55,818) (316,882) Principal repayments of debt — (200,000) Payments of licensed asset obligation — (13,532) Proceeds from issuance of debt — 200,000 Other financing activities (5,913) 4,889 Net cash used in financing activities (2,872,953) (2,099,854) Effect of foreign exchange rate on cash and cash equivalents (4,312) 8,726 Net increase in cash and cash equivalents, including cash from discontinued operations 686,635 925,488 Less: net decrease in cash from discontinued operations — (44,381) Net increase in cash and cash equivalents 686,635 969,869 Cash and cash equivalents at beginning of the period 2,487,096 697,030 Cash and cash equivalents at end of the period $ 3,173,731 $ 1,666,899 Supplemental disclosure of cash flow information: Cash paid for interest $ 100,834 $ 101,023 Cash paid for income taxes, net of refunds $ 926,151 $ 167,291 AppLovin Corporation / 3Q26 Financial Update 6
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AppLovin Corporation Reconciliation of Net Income to Adjusted EBITDA (In thousands, except percentages) The following table provides our Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of Net Income to Adjusted EBITDA for the periods presented: Quarter Ended 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Revenue $ 576,489 $ 678,370 $ 711,015 $ 835,186 $ 999,487 $ 1,158,974 $ 1,258,754 $ 1,405,045 $ 1,657,944 $ 1,842,449 $ 1,923,686 $ 2,184,815 Net income 172,233 236,183 309,969 434,420 599,204 576,419 819,531 835,545 1,102,256 1,205,613 1,266,538 1,438,902 Net margin 30 % 35 % 44 % 52 % 60 % 50 % 65 % 59 % 66 % 65 % 66 % 66 % Loss (income) from discontinued operations, net of income taxes 16,229 23,174 (8,987) (1,347) (3,092) 147,119 (47,675) — — — — — Net income from continuing operations 188,462 259,357 300,982 433,073 596,112 723,538 771,856 835,545 1,102,256 1,205,613 1,266,538 1,438,902 Net margin from continuing operations 33 % 38 % 42 % 52 % 60 % 62 % 61 % 59 % 66 % 65 % 66 % 66 % Adjusted as follows: Interest expense 71,042 73,925 74,418 74,937 93,929 52,888 51,409 51,429 51,290 51,159 51,156 51,066 Other (income) expense, net 19,398 (3,014) (8,763) (3,778) (7,841) (8,644) 12,798 9,079 (28,927) (41,360) (59,863) (84,501) Provision for (benefit from) income taxes 19,860 32,253 16,894 34,656 (61,384) 71,068 112,148 185,401 151,098 225,795 238,988 305,032 Amortization, depreciation and write-offs 31,323 30,917 31,242 32,369 34,263 31,946 31,064 34,978 32,736 33,665 32,563 34,190 Non-operating foreign exchange (gain) loss (1,408) 999 412 (2,479) 2,710 (320) (1,210) (570) (1,849) (1,266) (2,364) (2,055) Stock-based compensation 81,933 88,944 93,559 77,402 97,526 59,115 34,552 33,767 80,524 83,469 85,783 84,165 Transaction-related expense and other1 52 369 485 26 5 4,583 5,097 6,565 11,334 (49) 59 15,477 Restructuring costs (benefits)1 — — 1,936 811 14,512 3,598 633 1,460 217 (107) 963 (46) Total adjustments 222,200 224,393 210,183 213,944 173,720 214,234 246,491 322,109 296,423 351,306 347,285 403,328 Adjusted EBITDA $ 410,662 $ 483,750 $ 511,165 $ 647,017 $ 769,832 $ 937,772 $ 1,018,347 $ 1,157,654 $ 1,398,679 $ 1,556,919 $ 1,613,823 $ 1,842,230 Adjusted EBITDA margin 71 % 71 % 72 % 77 % 77 % 81 % 81 % 82 % 84 % 85 % 84 % 84 % AppLovin Corporation / 3Q26 Financial Update 7 1 Negative amount reflects a reversal of amounts expensed in prior periods