Applovin (APP) investor relations material

Executive summary

• Revenue for Q1 2026 reached $1.84 billion, up 59% year-over-year, driven by improved Axon Ads Manager performance and higher net revenue per installation, despite an 18% decrease in installation volume.

• Net income from continuing operations rose to $1.21 billion, a 109% increase compared to Q1 2025, with net margin at 65.4%.

• Adjusted EBITDA was $1.56 billion, up 66% year-over-year, with an 85% margin, reflecting strong operational leverage.

• Platform opening to public in June, marking a major milestone after 14 years as a closed platform.

• The company completed the divestiture of its Apps Business in June 2025, focusing resources on core advertising solutions.

Financial highlights

• Q1 2026 revenue was $1.84 billion, up 59% year-over-year and 11% sequentially.

• Net income from continuing operations was $1.21 billion; diluted EPS of $3.56.

• Adjusted EBITDA reached $1.56 billion, up from $938 million in Q1 2025.

• Free cash flow was $1.29 billion, with cash and equivalents at $2.76 billion at quarter end.

• Repurchased 2.23 million shares for $1 billion; $2.3 billion remains under repurchase authorization.

Outlook and guidance

• Q2 2026 revenue expected between $1.915 billion and $1.945 billion, up 52%-55% year-over-year.

• Adjusted EBITDA guidance for Q2 is $1.615-$1.645 billion, with margins of 84%-85%.

• Free cash flow conversion expected to normalize to ~75% of EBITDA for 2026.

• Management expects continued investment in AI-driven advertising solutions and expansion into new verticals such as e-commerce and CTV.

• Existing liquidity and cash flows are expected to cover working capital and capital expenditures for at least the next 12 months.