Applovin Corp FY2026 Q2 Financial Update

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Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Please see “Non-GAAP Financial Measures” and the reconciliation from GAAP to non-GAAP measures
later in this update.
AppLovin Corporation / 2Q26 Financial UpdateAdjusted EBITDA
($ millions)
Adjusted EBITDA
Cash Flow from Operations and Shares Outstanding
Cash Flow from Operations 2Q26 $1.92 ?illion 53% o/o)
2Q26 $1.27 ?illion 64% o/o), a net margin of 66%
2Q26 $1.61 ?illion 58% o/o), an 84% margin

Non-GAAP Financial Measures
To supplement our financial information presented in accordance with generally accepted accounting
principles in the United States (“GAAP”), this financial update includes certain financial measures that are
not prepared in accordance with GAAP, including Adjusted EBITDA and Adjusted EBITDA margin. A
reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP measure
can be found below.
We define Adjusted EBITDA for a particular period as net income, adjusted for loss (income) from
discontinued operations, net of income taxes, interest expense, other (income) expense, net (excluding
certain recurring items), provision for (benefit from) income taxes, amortization, depreciation and write-
offs and as further adjusted for non-operating foreign exchange (gain) loss, stock-based compensation,
transaction-related expense, restructuring costs (benefits), as well as certain other items that we believe
are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted
EBITDA divided by revenue for the same period.
We believe that the presentation of these non-GAAP financial measures provides useful information to
investors regarding our results of operations and operating performance, as they are similar to measures
reported by our public competitors and are regularly used by securities analysts, institutional investors,
and other interested parties in analyzing operating performance and prospects.
Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our financial
performance and are also used for internal planning and forecasting purposes. We believe Adjusted
EBITDA and Adjusted EBITDA margin are helpful to investors, analysts, and other interested parties
because they can assist in providing a more consistent and comparable overview of our operations across
our historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin in conjunction with
GAAP measures as part of our overall assessment of our performance, including the preparation of our
annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies,
and to communicate with our board of directors concerning our financial performance.
These measures have certain limitations in that they do not include the impact of certain expenses that
are reflected in our consolidated statement of operations that are necessary to run our business. Our
definitions may differ from the definitions used by other companies and therefore comparability may be
limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP
financial measures should be considered in addition to, not as substitutes for, or in isolation from,
measures prepared in accordance with GAAP.
AppLovin Corporation / 2Q26 Financial Update
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