APPU
Review|APP & U 2Q26: D28 IAA Is Now the Core Battleground
Mo
APP missed its typical beat as model gains slipped to July; Q3 starts strong but investors may doubt a return.
AppLovin Performance Snapshot
- 2Q26 revenue grew 53% YoY, 1% below the high end of guidance. Our revenue estimate was already below the bogey and below AppLovin’s typical 3% beat, but actual execution still came in below our estimate.
- The high end of 3Q26 revenue guidance implies 48% YoY growth, below the bogey. Assuming a typical 3% to 4% beat, implied 3Q26 revenue growth is roughly 53% YoY, broadly in line with 2Q26. Still, because 2Q26 did not deliver its typical beat, investors may question whether the company can return to that level.
Unity Performance Snapshot
- 2Q26 Unity Ads revenue grew 23% QoQ, modestly above our 20% expectation. Based on guidance and the typical beat, Unity Ads growth could remain near this pace in 3Q26.
AppLovin Earnings Call Takeaways
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