Why Is AppLovin Stock Down Today?
AppLovin beat on EPS but missed on revenue in Q2 2026 — and gave a Q3 revenue guide that came in below what Wall Street was expecting, on top of that miss.
- AppLovin fell 21.4% in the 15 minutes after its Q2 2026 report.
- Adjusted EBITDA came in at $1.61 billion versus $1.64 billion expected, and revenue was $1.92 billion versus $1.94 billion expected.
- The bigger issue: Q3 2026 revenue guidance of $2.055-2.085 billion came in below the roughly $2.068 billion analysts were modeling — a forward guidance miss stacked on top of the trailing-quarter miss.
AppLovin (APP) fell 21.4% in the fifteen minutes after its Q2 2026 report. The quarter itself was a modest miss: adjusted EBITDA of $1.61 billion against a $1.64 billion estimate, and revenue of $1.92 billion against $1.94 billion expected. On their own, misses of that size don't usually move a stock this much.
What made this one land harder is the outlook: AppLovin guided Q3 2026 revenue to $2.055-2.085 billion, below the roughly $2.068 billion analysts were modeling. That is a forward guidance miss stacked directly on top of the trailing-quarter miss — a signal that the deceleration isn't a one-quarter blip, at least not yet priced as one. AppLovin runs an AI-driven advertising engine, called AXON, that was built for mobile-app marketing and monetization and is now expanding into e-commerce and web advertising; the guidance miss raises the question of whether that expansion is landing as fast as the market had priced in.
The company's balance sheet and cash generation stayed strong regardless: free cash flow came in at $863.3 million for the quarter, and AppLovin repurchased $551.3 million of its own shares, ending the period with roughly $3.05 billion in cash. None of that offset the reaction to the guide.
Sources
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AppLovin (NASDAQ:APP) Misses Q2 CY2026 Revenue Estimates, Stock Drops 21%
— Yahoo Finance / StockStory
Q2 revenue/EBITDA figures, Q3 guidance miss vs estimates
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AppLovin craters 20% after Q2 revenue falls short of expectations
— Seeking Alpha
Corroborates the revenue miss and stock reaction as the headline story
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