AppLovin Burned Through $2.9 Billion Of Buyback Authorization, Down To $394.3 Million, Then The Board Added $3.2 Billion
The ad-software company retired 7.3 million shares in nine months and now has $3.6 billion available after an October board vote.
AppLovin, which sells AI-driven advertising software, spent $2.9 billion retiring 7.3 million Class A shares in the first nine months of 2026, leaving $394.3 million of buyback authorization at September 30. Its board then added about $3.2 billion in October, lifting the total available to $3.6 billion, according to the company's 10-Q filed Wednesday.
A third quarter that drained the program
The prior quarterly filing showed 3.3 million shares bought for $1.5 billion through six months, with $1.8 billion still available. The September 30 balance of $394.3 million means the third quarter alone consumed roughly $1.4 billion of authorization.
In its earnings release, the company said it repurchased and withheld 4.1 million shares in the third quarter at a total cost of $1.4 billion. Management described the increase as reflecting "continued confidence in the Company's future."
Share count is shrinking: 331 million Class A and Class B shares were outstanding at quarter-end, against 338 million at year-end 2025, per the balance sheet.
Funded from cash flow, not borrowing
Cash spent on repurchases came to $2.8 billion for the nine months, against $3.6 billion of operating cash flow. Cash paid for income taxes was $926.2 million, up from $167.3 million a year earlier. Repurchases bought but not yet paid for stood at $115.4 million at September 30, versus $18.5 million at June 30.
AppLovin ended September with $3.2 billion in cash, and its $1.0 billion revolving credit facility sits alongside long-term debt of about $3.5 billion on the balance sheet.
The business behind the cash is growing fast. Third-quarter revenue rose 55% to $2.18 billion and net income climbed 72% to $1.44 billion, the company reported. Its main product, Axon Ads Manager, generates substantially all of revenue by matching advertisers with app publishers through auctions. Other tools include MAX, Adjust and Wurl.
No obligation to spend it
The program has no expiration date and does not commit the company to buy any set amount. It can be changed, suspended or ended at any time, the filing says.
The company guided fourth-quarter revenue of $2,365 million to $2,395 million. The 10-K for the year will show how much of the $3.6 billion was used by then.
The 10-K for the year ending December 31 will show how much of the $3.6 billion was spent.
Sources
- 10-Q Filing — AppLovin (APP) — SEC EDGAR
- 10-Q Filing — AppLovin (APP), Q2 FY2026 filed 2026-08-05 (comparison basis) — SEC EDGAR
- 8-K Filing — AppLovin, filed 2026-11-04 (Items 2.02, 5.07, 9.01) — SEC EDGAR
- Earnings release (8-K Item 2.02, exhibit991-3q26earningspre.htm) — AppLovin, filed 2026-11-04 — SEC EDGAR
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