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AppLovin Beats Q1 and Guides Higher as AI Ads Push Profit to 85% Margins

The uneven stock move signals doubts about sustainability under ongoing regulatory scrutiny.

Overview

  • AppLovin posted Q1 revenue of $1.84 billion and adjusted EPS of $3.56, beating forecasts, with adjusted EBITDA of $1.56 billion for roughly an 85% margin.
  • The company guided Q2 revenue to $1.92–$1.95 billion and adjusted EBITDA to $1.62–$1.65 billion, a touch above Wall Street expectations.
  • Shares rose in premarket trading and later fell after-hours as investors weighed the strong results against questions about how long growth can hold.
  • Management repurchased about $1 billion of stock, ended the quarter with roughly $2.76 billion in cash, and generated about $1.30 billion in free cash flow.
  • Axon, the firm’s AI ad engine, and a June commercial launch of its e-commerce ad product are the next tests, following a sharp early-2026 selloff and continued SEC and short-seller scrutiny.