APP · 10-Q · 2026Q2 · Full report

Operating Expense Trends

AppLovin Corp · 2026-08-05 · Importance 52 · Surprise 56 · In source text

Second-quarter sales and marketing expense rose 35% to $63.4 million, driven by a $17.2 million increase in advertising and marketing program costs, partly offset by $3.5 million lower personnel costs. Six-month sales and marketing expense rose 17% to $124.1 million, as advertising and marketing costs increased $34.0 million while personnel costs declined $18.8 million. Second-quarter research and development expense increased 127% to $99.9 million, and six-month expense increased 93% to $194.0 million, primarily due to stock-based compensation-related payroll increases of $54.8 million and $91.3 million, respectively. General and administrative expense declined 27% in the quarter and 21% for six months, reflecting lower bad-debt expense and transaction-related professional services costs.

Key facts

• Three months ended June 30, 2026 Research and development expenses increased by $55.9 million, or 127%, compared to the same period in the prior year due primarily to an increase of $54.8 million in personnel-related expenses related to an increase in stock-based compensation-related payroll costs. source
• Three months ended June 30, 2026 Sales and marketing expenses increased by $16.5 million, or 35%, compared to the same period in the prior year due primarily to an increase of $17.2 million in advertising and marketing program costs. source
• Three months ended June 30, 2026 Research and development expense: $99,901 (in thousands). source
• Three months ended June 30, 2026 General and administrative expenses decreased by $14.7 million, or 27%, compared to the same period in the prior year due to a decrease of $9.5 million in bad debt expense and a decrease of $5.2 million in professional services costs. source
• Three months ended June 30, 2026 Sales and marketing expense: $63,394 (in thousands). source
• Three months ended June 30, 2026 General and administrative expense: $40,313 (in thousands). source
• Three months ended June 30, 2026 Interest expense: $(51,156) (in thousands). source

Impact estimates