Q2 2026 Applovin Corp Earnings Call Transcript
Key Points
- Revenue grew 53% year-over-year to $1.92 billion, with adjusted EBITDA up 58% to $1.61 billion, reflecting strong underlying business momentum.
- Consumer vertical advertiser spend hit a record, finishing 28% above Q4 2025 levels, demonstrating rapid scaling in a seasonally slow quarter.
- Model improvements that landed after Q2 are already live and performing, driving a strong start to Q3 and reaccelerating growth.
- The SEC concluded its inquiry with no recommended action, removing a potential overhang on the stock.
- Free cash flow generation remains robust at $863 million for the quarter, with net leverage at just 0.1 times trailing twelve-month adjusted EBITDA.
- Q2 revenue and adjusted EBITDA came in just below the midpoint and range of guidance, respectively, due to lighter-than-expected model improvements.
- The pace of meaningful model improvement was lighter than normal during the quarter, leading to slower sequential growth of only 4%.
- Higher compute costs for training and new model development pressured margins, with flow-through to adjusted EBITDA at 70% quarter-over-quarter.
- Free cash flow conversion was below normal cadence in Q2 due to timing of international cash tax and interest payments.
- The consumer vertical is not yet large enough to fully smooth out quarterly volatility, as evidenced by the Q2 miss.
Welcome to AppLovin's earnings call for the second quarter ended June 30, 2026. I'm David Hsiao, Head of Investor Relations. Joining me today to discuss our results are Adam Foroughi, our Co-Founder and CEO; and Matt Stumpf, our CFO.
Please note our SEC filings to date, as well as our financial update and press release discussing our second quarter performance, are available at investor.applovin.com. During today's call, we will be making forward-looking statements, including, but not limited to, the future development and reach of our platform, our expected growth opportunities, the expected future financial performance of the company, and other future events. These statements are based on our current assumptions and beliefs, and we assume no obligation to update them except as required by law.
Our actual results may differ materially from the results predicted. We encourage you to review the risk factors in our most recently filed Form 10-Q for the fiscal quarter ended March 31, 2026. Additional information may also be found in
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