Earnings · $APP
AppLovin Revenue Jumps 55% to $2.18 Billion, Fourth-Quarter Guidance Points to More Growth and Buyback Expands
Image: ChiemSeherin via Pixabay
The ad-tech company reported an 84% adjusted EBITDA margin and raised its repurchase authorization by $3.2 billion; shares rose after hours.
By Noris Ortiz ·
AppLovin reported third-quarter results on Wednesday that showed rapid revenue growth and very high profitability, and shares rose sharply in after-hours trading, TipRanks reported [3]. The advertising-technology company also guided fourth-quarter revenue above the level of its latest quarter and enlarged its share repurchase program.
Revenue for the quarter ended September 30 was $2,185 million, up 55% from $1,405 million a year earlier. Net income rose 72% to $1,439 million, a 66% net income margin, and adjusted EBITDA climbed 59% to $1,842 million, an 84% margin. Diluted earnings per share were $4.30 [1]. The company's chief financial officer, Matt Stumpf, said revenue beat the high end of guidance by about $100 million, and adjusted EBITDA also came in above the top of the guided range, according to a summary of the earnings call [2].
For the first nine months of 2026, revenue totaled $5,951 million, up 56%, while adjusted EBITDA reached $5,013 million, up 61% [1]. Operating cash flow and free cash flow were each about $1.4 billion in the third quarter [1].
The outlook is for continued expansion. AppLovin guided fourth-quarter revenue to $2,365 million to $2,395 million and adjusted EBITDA to $1,995 million to $2,025 million, an adjusted EBITDA margin of 84% to 85% [1]. The earnings-call summary described the revenue range as implying growth of about 43% to 44% from a year earlier and 8% to 10% from the third quarter [2]. Stumpf also said he expects free cash flow to be roughly 70% to 75% of adjusted EBITDA for the full year [2].
Capital returns were substantial. During the third quarter the company repurchased and withheld 4.1 million Class A shares for $1.4 billion, leaving 331 million Class A and Class B shares outstanding at quarter end. The board raised the repurchase authorization by $3.2 billion, bringing the total available to $3.6 billion as of the end of October [1].
Management used the call to explain its push into e-commerce advertising. Chief Executive Adam Foroughi said e-commerce advertisers typically spend heavily in the fourth quarter and less in the first, and that as this business grows he expects bigger fourth quarters followed by "tougher first quarters" [2]. He added that very small businesses are not yet the platform's main opportunity, and that customers who receive help from AppLovin's team, or sophisticated advertisers using self-service tools, are more likely to succeed [2].
TipRanks listed AppLovin among the notable after-hours movers alongside Qualcomm, which fell on a disappointing outlook, underscoring how differently investors are treating companies with strong profit growth versus those facing margin pressure [3]. TipRanks did not quantify the size of AppLovin's gain, so this article does not state one.
What to watch: how the stock trades at Thursday's open relative to its after-hours move, whether analysts adjust fourth-quarter estimates toward the new guidance range, and how the e-commerce advertiser base develops heading into the seasonally softer first quarter.
Sources:
[1] AppLovin (via Business Wire and MarketScreener), "AppLovin Announces Third Quarter 2026 Financial Results", November 4, 2026. https://www.marketscreener.com/news/applovin-announces-third-quarter-2026-financial-results-ce785fdfde80f326
[2] Yahoo Finance, "What AppLovin (APP) Said on Its Q3 Earnings Call", November 4, 2026. https://finance.yahoo.com/technology/articles/applovin-app-said-q3-earnings-001430989.html
[3] TipRanks, "Stock Market Today, Nov. 5: Futures Mixed After Democratic Victory Sparks Wall Street Rally", November 5, 2026. https://www.tipranks.com/news/stock-market-today-nov-5-futures-mixed-after-democratic-victory-sparks-wall-street-rally
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.