Shares of AppLovin Corporation (APP) tumbled 17.07% in extended trading, after the ad‑technology company reported second‑quarter revenue that missed Wall Street estimates and issued a third‑quarter outlook that fell short of expectations.

The company reported Q2 revenue of $1.92 billion, up 53% year‑over‑year, but slightly below the analyst consensus of $1.94 billion. Adjusted EBITDA came in at $1.61 billion, also missing forecasts, while earnings per share of $3.76 met expectations. For the third quarter, AppLovin guided for revenue between $2.06 billion and $2.09 billion, roughly in line with estimates, but its adjusted EBITDA outlook of $1.71‑$1.74 billion missed the consensus of $1.76 billion.

CEO Adam Foroughi acknowledged that the results fell short of the company’s own standards, attributing the lighter‑than‑expected quarter to the timing of AI model improvements. He emphasized that advertiser demand remains strong and that the business is already back on its expected trajectory. Despite the upbeat tone, the combination of the revenue miss and softer profit guidance triggered a sharp sell‑off as investors locked in profits after strong pre‑earnings gains.