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AppLovin’s $551 Million Buyback — Strong Cash Generation Meets A Bigger AI Bet!

AppLovin reported second-quarter 2026 revenue of approximately $1.92 billion, representing a 53% increase year-over-year but slightly below the midpoint of its guidance range. Adjusted EBITDA grew 58% year-over-year to about $1.61 billion, with margins expanding by roughly 300 basis points compared to the prior year, although just below guidance expectations. Free cash flow for the quarter was $863 million, below the company’s typical cadence due to timing of international tax and interest payments; the company expects conversion to normalize near 75% of adjusted EBITDA for the full year. Net leverage stood at approximately 0.1x trailing 12-month adjusted EBITDA, consistent with the company’s targeted leverage range. The company repurchased about 1.14 million shares for $551 million during the quarter, moderating buyback activity due to the lower free cash flow but maintaining confidence in its share repurchase program. An SEC inquiry related to the company was concluded with no recommended action.