Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AppLovin (APP) delivered exceptional Q1 FY2026 results with revenue surging 59% YoY to $1.84B and net income more than doubling to $1.21B, driven by powerful operating leverage that pushed operating margins above 78%.
Revenue
$1.84B
+58.97% YoY
EPS (Diluted)
$3.56
+113.17% YoY
Operating Income
$1.44B
+71.42% YoY
Source: SEC XBRL
AppLovin (APP) reported Q1 FY2026 revenue of $1.84B, up 59.0% year over year. Operating margin was 78.2%, up 5.7 points from 72.5% a year earlier. Operating cash flow was $1.29B, up 55.3% year over year. APP's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.76 | 3.76 | Beat +0.1% |
| Mar 2026This filing | 3.56 | 3.44 | Beat +3.6% |
| Dec 2025 | 3.24 | 2.96 | Beat +9.5% |
| Sep 2025 | 2.45 | 2.42 | Beat +1.0% |
Reported EPS of $3.56 versus the $3.44 analyst consensus — a +3.6% beat for Mar 2026.
Compiled by AI from this SEC filing
Revenue grew 59.0% YoY to $1.84B in Q1 FY2026 (vs. $1.16B in Q1 FY2025), reflecting strong demand for AppLovin's AI-powered advertising platform and continued monetization of its software segment.
Source: 10-Q Income Statement
Operating income surged 71.4% YoY to $1.44B, with operating margin expanding 568 basis points to 78.2% from 72.5%, demonstrating that revenue growth is significantly outpacing cost growth and the business is highly scalable.
Source: 10-Q Income Statement
Net income jumped 109.2% YoY to $1.21B, with diluted EPS rising 113.2% to $3.56, as operating leverage and improved profitability flowed through to the bottom line at an accelerating rate.
Source: 10-Q Income Statement
Cash and equivalents grew 400.6% YoY to $2.76B (from $551M), significantly strengthening the balance sheet and providing substantial liquidity, even as the company returned ~$982M to shareholders via buybacks in the quarter.
Source: 10-Q Balance Sheet & Cash Flow Statement
Operating cash flow increased 55.3% YoY to $1.29B, confirming that reported earnings are backed by real cash generation, with minimal capital expenditure needs (investing cash flow of only -$5.2M) indicating a highly asset-light business model.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
AppLovin carries $3.51B in long-term debt against stockholders' equity of $2.36B, resulting in a debt-to-equity ratio of 2.26x. While equity has grown 310.7% YoY due to retained earnings, the debt load remains substantial and could constrain financial flexibility if business conditions deteriorate.
Source: 10-Q Balance Sheet
The company repurchased approximately $982M in shares during Q1 FY2026, representing the vast majority of its $1.29B operating cash flow. While this signals management confidence, it leaves limited free cash for debt reduction or strategic investments if revenue growth slows.
Source: 10-Q Cash Flow Statement
AppLovin's dramatic revenue growth is heavily tied to its AI-driven ad platform, making it vulnerable to shifts in digital advertising spend, changes in mobile app ecosystem policies (e.g., Apple ATT, Google Privacy Sandbox), or competitive disruption from larger ad platforms.
Source: 10-Q Income Statement
R&D expense grew 66.8% YoY to $94.1M, but represents only ~5.1% of revenue. While the company's AI models are central to its competitive advantage, underinvestment in R&D relative to revenue could risk technological obsolescence if competitors scale their own AI capabilities faster.
Source: 10-Q Income Statement
Depreciation and amortization fell sharply by 57.9% YoY to $33.7M (from $79.9M), which may reflect the wind-down of previously acquired intangible assets. This could indicate reduced amortization from prior acquisitions, but also means future acquisitions could re-introduce significant amortization charges.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.84 $B | 1.16 $B | +58.97% |
Cost of Revenue $M | 203.63 $M | 151.68 $M | +34.25% |
Operating Income $B | 1.44 $B | 0.84 $B | +71.42% |
Net Income $B | 1.21 $B | 0.58 $B | +109.16% |
EPS (Basic) $ | 3.57 $ | 1.70 $ | +110.00% |
EPS (Diluted) $ | 3.56 $ | 1.67 $ | +113.17% |
R&D Expense $M | 94.10 $M | 56.41 $M | +66.83% |
Answers draw on this SEC filing and the data on this page
AppLovin's Q2 FY2026 earnings were propelled by a 53% revenue increase to $1.92 billion, driven by a 58% rise in net revenue per installation, while net income jumped 55% to $1.27 billion.
AppLovin (APP) delivered exceptional FY2025 results with revenue surging 70% to $5.48B and net income more than doubling to $3.33B, driven by explosive operating leverage that pushed operating margins to a remarkable 75.8%.
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