Applovin Corp - Ordinary Shares - Class A

Strong Q2 fundamentals (but below internal expectations): Revenue was $1.92B, up 53% YoY and 4% QoQ, with adjusted EBITDA $1.61B up 58% YoY and ~300 bps margin expansion. However, both revenue and adjusted EBITDA came just below the company’s guidance midpoint/range—management emphasized this was a timing issue, not demand weakness.

Why results lagged: “model improvement timing” (not advertiser demand): Gaming is the biggest revenue driver; growth is tied to ad model performance improving advertisers’ ROAS so budgets step up. In Q2, the pace of meaningful model uplift was lighter than normal, with the next step-up landing just after quarter end (so Q3 benefits). They cited no competitive/demand deterioration; e.g., MAX publisher earnings grew double-digits QoQ and waterfall share stayed consistent.

Consumer momentum + early platform expansion: - Consumer was outstanding: advertiser spend finished 28% above Q4 2025 levels (Q4 was stated as the seasonal peak), showing a steep curve even in a seasonally slower quarter. - Company opened the platform to the public (under the original branding AppLovin Ads Manager) in late June, sequencing first for mid-market advertisers where performance is strongest today. They framed this as deliberate (not expected to change results instantly) and said consumer should keep scaling each quarter as data compounds. - Partnership go-to-market: They’re using partnerships (not just direct self-serve) to reach more targeted advertiser segments (example: an e-commerce analytics/commerce-related partner type), to improve match quality early.