Earnings Call
May 6, 2026
Q1 FY2026
EPS Estimate
3.44
EPS Actual
3.56
Post-Earnings Close
$498.87
Earnings Reaction
+6.4%
AppLovin's first quarter of 2026 was defined less by the headline beat, though that was substantial, and more by the acceleration signals embedded in the results and the proximity of a structural inflection point: the June opening of Axon to self-serve advertisers worldwide. Revenue of $1.84 billion came in ahead of guidance and grew 59% year-over-year and 11% sequentially, a remarkable feat given that most advertising businesses see a sharp sequential decline from Q4 into Q1. Adjusted EBITDA of $1.56 billion represented an 85% margin, a new high, with roughly 400 basis points of year-over-year expansion and an 86% flow-through on incremental revenue. Free cash flow was $1.29 billion, with management flagging that tax payment timing will weight conversion lower in Q2 and Q3 before normalizing to approximately 75% of EBITDA for the full year. The company repurchased $1 billion of stock in the quarter, ending with $2.76 billion in cash and $2.3 billion remaining under its buyback authorization.
Report generated on May 8, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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