Wednesday, August 5th, 2026 – 8:19 pm
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AppLovin made $1.9 billion in Q2, almost $1.3 billion of which was recorded as net income, the company reported in its quarterly earnings on Wednesday. Both the total revenue and profitability metrics were up by more than 50% compared to the same time last year.
That sounds impressive. However, AppLovin shares fell by more than 20% in after-hours trading. Investors expressed disappointment with earnings below AppLovin’s guidance and the relatively slow expansion of its consumer ads business, which became generally available to advertisers in June.
Adam Foroughi, AppLovin’s co-founder and CEO, emphasized that the company is early on with its consumer ads business. That side of the business is the evolved form of its ecommerce ads beta, which ran until about a year and a half ago. The mid-tier ecommerce and consumer brands (so not the Coca-Cola type brands or the long-tail of local companies or SMBs) that AppLovin is targeting out of the gate “usually manage their budgets over somewhere in the neighborhood of one quarter to four quarters ahead,” Foroughi said. Search and social command a majority of the budget for these brands.
