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.
APPAppLovin·2026Q2 10-QPaidFiling score 65 · Moderate
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AppLovin paid $640m of cash income taxes in the first half — 6.4 times a year earlier
Q2 2026 10-Q: revenue $1.92bn (+53%). Cash paid for income taxes in the first half was $639.8m against a $464.8m provision. Operating cash flow exceeded net income in the first quarter but fell below it in the second
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.
In plain terms
In the first half AppLovin paid more tax in cash than it recorded as a cost. Against a year earlier, the cash it actually paid is more than six times larger. That much more money left the company.
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65 Filing score · Moderate
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FAQ
Why were cash taxes so high?
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).
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%).
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.
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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 · SEC EDGAR · This article is not investment advice. Disclaimer