AppLovin Corporation (APP), a marketing platform, reported second-quarter 2026 revenue of $1.92 billion, 53% above $1.26 billion a year earlier. Sequential growth slowed to 4.4% from 11.1% in the first quarter, when sales had also risen 11.1% from the fourth quarter of 2025. The year-over-year rate had been 59% in the first quarter.

That deceleration in the quarter-over-quarter pace is the turn in the arc. Profitability remained high even as the growth rate eased. Adjusted EBITDA was $1.61 billion, up 58% from $1.02 billion a year earlier, and the Adjusted EBITDA margin expanded to 84% from 81%. Net income was $1.27 billion, up 55% from $820 million; net income from continuing operations was $1.27 billion, up 64% from $772 million. Diluted earnings were $3.76 a share, versus $2.39 a year earlier.

Income from operations was $1.49 billion. Cost of revenue was $225.8 million, sales and marketing was $63.4 million, research and development was $99.9 million, and general and administrative expense was $40.3 million. Other income, net, was $62.4 million. The provision for income taxes was $239.0 million.

Cash generation stayed large. Net cash from operating activities was $869.0 million and free cash flow was $863.3 million. Cash and cash equivalents were $3.05 billion at June 30, 2026, compared with $2.49 billion at year-end 2025. Long-term debt was $3.52 billion.

The company repurchased and withheld 1.1 million Class A shares for $551.3 million in the second quarter, leaving 335 million Class A and Class B shares outstanding at quarter-end. In the first quarter it had repurchased and withheld 2.2 million shares for $1.0 billion.

For the six months ended June 30, 2026, revenue was $3.77 billion, up 56% from $2.42 billion a year earlier. Net income was $2.47 billion, up 77% from $1.40 billion. Adjusted EBITDA was $3.17 billion, up 62% from $1.96 billion. Operating cash flow for the six months was $2.16 billion.

AppLovin guides third-quarter 2026 revenue to $2.055 billion to $2.085 billion and Adjusted EBITDA to $1.710 billion to $1.740 billion, at an 83% Adjusted EBITDA margin. That range sits above the second-quarter result of $1.92 billion in revenue and $1.61 billion in Adjusted EBITDA. The company had guided second-quarter revenue to $1.915 billion to $1.945 billion and Adjusted EBITDA to $1.615 billion to $1.645 billion at an 84% to 85% margin. Reported Adjusted EBITDA of $1.61 billion fell just below that prior range, and the third-quarter margin guide of 83% is one point lower than the 84% to 85% band given for the second quarter.

The mix of the quarter is concentrated in advertising technology rather than a multi-segment report. AppLovin describes itself as providing end-to-end advertising solutions to reach, monetize and grow global audiences. Research and development spending of $99.9 million in the second quarter was more than double the $44.0 million a year earlier, while general and administrative expense declined to $40.3 million from $55.0 million. Stock-based compensation was $85.8 million, up from $34.6 million a year earlier.

The company will host a webinar to discuss the results and business performance. Forward-looking statements remain subject to risks including the macroeconomic environment, the competitive advertising ecosystem, and the ability to scale the business.