AppLovin (APP.US) performance “textbook level”: Q3 revenue surged 55%, net profit margin 66%, topping the advertising industry! Repurchase $1.4 billion in a single quarter

Zhitong Finance App learned that on November 5, Beijing time, the “AI+ advertising” platform AppLovin (APP.US) released the results for the third quarter of 2026 (as of September 30) after the US stock market on Wednesday. The advertising technology company once again handed over a “textbook-level” questionnaire: revenue, net profit, and adjusted EBITDA all hit record highs in a single quarter, and profit quality indicators are far ahead of large-scale advertising platforms.

Core performance: Revenue increased by 55%, net profit margin reached 66%

According to financial reports, AppLovin achieved revenue of US$2.85 billion in the third quarter, up 55% year on year; net profit of US$1,439 million, up 72% year on year, with a net profit margin of 66% (59% in the same period last year); adjusted EBITDA was US$1,842 million, up 59% year on year, and adjusted EBITDA margin reached 84% (82% in the same period last year). Diluted earnings per share were $4.30, compared to $2.45 for the same period last year.

Looking at it in the long run, growth momentum has not abated: in the first nine months of 2026, the company's cumulative revenue was US$5.951 billion, up 56% year on year; cumulative net profit of US$3,911 billion, up 75% year on year; cumulative adjusted EBITDA was US$5 billion, up 61% year on year, and profit margin 84%.

Cash flow performance was also strong: operating cash flow for the third quarter was approximately US$1,429 million, and free cash flow was approximately US$1,418 million, a significant increase of approximately 35% over the previous year. By the end of the quarter, the company held $3.174 billion in cash and equivalents and $3,516 billion in long-term debt.

Major buybacks: $1.4 billion in a single quarter, and total authorizations increased to 3.6 billion

AppLovin continues to implement an aggressive shareholder return strategy: repurchasing and withholding 4.1 million Class A common shares in the third quarter at a cost of about $1.4 billion — almost equivalent to the full amount of free cash flow for the quarter; cumulative repurchase expenses for the first nine months reached $2,811 million. The board of directors also approved an additional $3.2 billion repurchase authorization. By the end of October, the total repurchase authorization reached 3.6 billion US dollars, which is more than one-tenth of the company's current market value. Driven by high profits and continuous repurchases, the company's tradable share capital has dropped to about 331 million shares.

Q4 Guidelines: Revenue of US$2,395 million, profit margin 85%

The company's guidance for the fourth quarter continues the dual trend of high growth and high profit margins: estimated revenue of 2,365 billion US dollars to 2,395 million US dollars (median value of about 2.38 billion US dollars, an increase of about 9% over the previous month); adjusted EBITDA of 1,995 million to 2,025 million US dollars, corresponding profit margin of 84% to 85% — that is, the upper end of the guidance range means that profit margins continue to expand compared to the third quarter.

Market Background: A Key Battle After the Plunge

The notable context is that this financial report was published at a time when AppLovin's stock price fluctuated sharply: on October 30, the company's stock price plummeted 10.36% to $228.50 in a single day, and the stock price rebounded 10.69% to $271.75 during the regular trading session on November 4 — the financial report was released just after the market on the same day. As a company regarded by the market as a benchmark for “AI advertising commercialization,” AppLovin's report card — 55% revenue growth plus 84% EBITDA profit margin — provides a reconfirmation of its valuation logic; the implied month-on-month acceleration in the median value of the Q4 guidelines and the continued expansion of profit margins is a direct response to the recent “AI trading” pullback. After the financial report was released, the company's management held a conference call after the US stock market on Wednesday. The market kept a close eye on comments on Axon's AI engine-driven advertising business and new growth curves such as e-commerce advertising.