Overview
- The company reported Q2 revenue of $1.92 billion, a 53% year-on-year increase, and adjusted EBITDA of about $1.61 billion.
- Q2 revenue fell just short of Wall Street estimates and adjusted EBITDA missed AppLovin’s own guidance, marking the first guidance miss in several quarters.
- Shares plunged in after-hours trading, falling as much as roughly 17–21% as investors reacted to the narrow misses and margin pressure.
- Management told investors the shortfall came down to timing because key AXON AI model improvements arrived after quarter end and training and compute costs are higher as models are retrained.
- AppLovin guided Q3 revenue in line with consensus and reiterated a long-term aim for low‑80s adjusted EBITDA margins while saying it will keep investing in AI, AXON and MAX to diversify beyond gaming.