AppLovin Q3 profit beats; shares jump 22% after hours

AppLovin (APP) said on Nov. 4 that third-quarter revenue rose 55% to $2.18 billion and net income climbed 72% to $1.44 billion, from a year earlier.

Diluted earnings per share were $4.30, topping the $4.08 consensus estimate, and revenue topped the $2.1 billion revenue estimate.

Shares rose 22.1% in after-hours trading as of 4:41 p.m. ET, from a regular-session close of $271.41.

AppLovin makes technologies that help businesses of every size connect to their ideal customers.

Here's how the company did:

• Revenue: $2.18 billion vs. $1.41 billion a year earlier
• Net income: $1.44 billion vs. $836 million a year earlier
• Diluted EPS: $4.30 vs. $2.45 a year earlier, $4.08 expected
• Adjusted EBITDA: $1.84 billion vs. $1.16 billion a year earlier
• Free cash flow: $1.42 billion vs. $1.05 billion a year earlier

For the first nine months, revenue reached $5.95 billion, up 56% from $3.82 billion a year earlier.

Revenue has risen in each of the last three quarters, from $1.41 billion in the third quarter of 2025 to $1.92 billion in the second quarter of 2026, according to its SEC filings.

Net income has also risen in each of the last three quarters, from $835.5 million in the third quarter of 2025 to $1.27 billion in the second quarter of 2026, according to its SEC filings.

Fourth-quarter guidance

For the fourth quarter, the company expects revenue of $2.37 billion to $2.40 billion and adjusted EBITDA of $2.00 billion to $2.03 billion.

It also expects an adjusted EBITDA margin of 84% to 85%.

Share repurchases

During the quarter, AppLovin repurchased and withheld 4.1 million Class A shares for a total cost of $1.4 billion. The total includes shares withheld upon net share settlement of vested equity awards.

The board approved an increase of $3.2 billion to the share repurchase authorization, bringing the total to $3.6 billion as of the end of October. At the end of the third quarter, AppLovin had 331 million Class A and Class B shares outstanding.

Reincorporation to Nevada

A regulatory filing showed that holders of approximately 67% of the company's voting power adopted resolutions by written consent on Oct. 29 to approve moving the company from Delaware to Nevada by conversion. The consenting holders include Adam Foroughi and Herald Chen, along with a trust and several LLCs.

The company plans to carry out the reincorporation no earlier than 20 calendar days after it begins mailing an information statement to holders of record as of Oct. 29.