AppLovin paid $640m of cash income taxes in the first half — 6.4× a year earlier and $175m more than the tax expense on its income statement — and Q2 operating cash flow was 69% of net income
Q2 2026 10-Q: revenue $1.92bn (+53%), operating margin 78%, net income $1.27bn (+55%). Cash paid for income taxes in the first half was $639.8m against a $464.8m provision. Operating cash flow exceeded net income in Q1 ($1.29bn) but fell below it in Q2 ($869m). Accounts receivable $2.17bn (113% of quarterly revenue), first-half buybacks $1.5bn, cash $3.05bn, Tripledot stake $290m
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AppLovin Form 10-Q for Q2 2026 (as of June 30): statement of operations, balance sheet (receivables), cash-flow statement and supplemental disclosures (cash paid for income taxes), related-party note (Tripledot), equity note (repurchases), MD&A on operating cash flow, income taxes and R&D
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AppLovin (APP) reported Q2 2026 (April–June) revenue of $1,923.7m, up 53%, and net income of $1,266.5m. One line at the bottom of the cash-flow statement in the 10-Q filed on August 5 explains the quarter's cash flow: cash paid for income taxes in the first half was $639.8m — 6.4 times a year earlier and $175m more than the tax expense.
What happened
AppLovin (APP) is a platform that brokers advertising for mobile apps. Since it sold its games business to Tripledot in June 2025, advertising is the only business left.
Its quarterly report (10-Q) for Q2 2026 (April–June) shows revenue of $1,923.7m, up 53% from $1,258.8m a year earlier. Operating income was $1,494.3m, a 78% operating margin, and net income $1,266.5m ($819.5m a year earlier, +55%). On a continuing-operations basis net income rose 64%, from $771.9m.
The supplemental disclosures at the bottom of the cash-flow statement contain two lines: cash paid for interest, $99.7m, and cash paid for income taxes, $639.8m. A year earlier the same line read $100.6m. That is 6.4 times. Over the same period the provision for income taxes on the income statement was $464.8m, so the cash actually paid exceeded the expense by $175.0m.
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The 10-Q states the amount ($639.8m in the first half) and lists cash paid for income taxes among the items that partially offset the improvement in operating cash flow, but does not separately explain why payments exceeded the expense. For the increase in the tax provision it cites higher pre-tax income, foreign income taxed at different rates and a smaller benefit from stock-based compensation. This article reports the gap between payments and expense; the criteria for judging it are in the subscriber section.
Is operating cash flow below net income a problem?
Q2 operating cash flow was $869.0m, 69% of net income ($1,266.5m); Q1 was $1,291.4m, above net income ($1,205.6m). For the first half the total of $2,160.4m is 87% of net income of $2,472.2m. The company attributes the first-half improvement to higher collections on revenue growth, partially offset by publisher payments, operating spend and cash taxes.
What is the Tripledot relationship?
In June 2025 AppLovin sold its games business to Tripledot for $430.6m in cash and 596.9m Tripledot shares valued at $285.0m (about 22%). Tripledot now spends on AppLovin's ad platform, generating $18.0m of Q2 revenue (0.9% of quarterly revenue) and $42.9m in the first half, disclosed as related-party revenue.
Where can I verify these numbers?
On SEC EDGAR: AppLovin's Q2 2026 Form 10-Q (accession 0001751008-26-000059), the supplemental disclosures at the bottom of the cash-flow statement (cash paid for income taxes), the statement of operations (provision), the balance sheet (receivables), the related-party note, the equity note (repurchases) and the liquidity section of MD&A.
How aiSwingX™ wrote this
We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
An editor reviews before publication; any later change is recorded in the revision history.
AppLovin Form 10-Q for Q2 2026 (as of June 30): statement of operations, balance sheet (receivables), cash-flow statement and supplemental disclosures (cash paid for income taxes), related-party note (Tripledot), equity note (repurchases), MD&A on operating cash flow, income taxes and R&D · SEC EDGAR · This article is not investment advice. Disclaimer
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aiSwingX™ analyzes US filings and reports them as news investors can read.
