Want to see APP full AI Analyst Report?
AppLovin (APP) AI Stock Analysis
AppLovin
(NASDAQ:APP)
The score is driven primarily by very strong profitability and cash generation, reinforced by upbeat guidance and operational momentum from the latest earnings call. These strengths are tempered by weak technicals (clear downtrend and negative momentum) and some financial risk from leverage, while valuation looks reasonable on a P/E basis.
AppLovin Key Performance Indicators (KPIs)
Adjusted EBITDA by SegmentShows profitability across different business units, highlighting which segments are driving earnings and where there might be opportunities or challenges in cost management.
AppLovin’s adjusted‑EBITDA has consolidated into Advertising as the clear profit engine while Apps’ contribution fell to essentially nil by mid‑2025, signaling a structural shift (reclassification, divestment, or wind‑down) that concentrates earnings power and risk in the ad stack. That concentration helps explain the company’s exceptional margins and cash generation per the call, but it also raises dependency on AXON/mediation competitiveness and the pace at which e‑commerce/self‑serve and generative‑AI creative scale — those adoption and conversion metrics will drive upside or downside from here.
The FlyAppLovin (APP) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $82.48B
- Dividend Yield
- ―
- Average Volume (3M)
- 5.13M
- Price to Earnings (P/E)
- 18.8
- Beta (1Y)
- 3.40
- Revenue Growth
- 28.52%
- EPS Growth
- 90.65%
- Country
- US
- Employees
- 887
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Software - Application
AppLovin Business Overview & Revenue Model
Company Description
AppLovin Corporation provides a specialized software platform focused on empowering mobile application developers to enhance the marketing and revenue generation of their products. With operations spanning the United States and international markets,...
How the Company Makes Money
AppLovin primarily makes money by providing advertising technology that enables advertisers to buy mobile app advertising inventory and enables app publishers (developers) to monetize their apps. Its key revenue streams are: (1) Advertising revenue f...
AppLovin Earnings Call Summary
The call conveyed a predominantly positive operational and financial picture: very strong year-over-year revenue and adjusted EBITDA growth, high margins, substantial free cash flow, a clean resolution to an SEC inquiry, and explicit momentum in the consumer vertical and product launch. However, management acknowledged near-term execution friction — principally the timing of model uplifts that caused results to fall slightly below internal expectations, higher compute costs, temporary free cash flow timing issues, and product bottlenecks around creative and self-service onboarding. The company provided confident Q3 guidance and noted that the key model improvements are now live, supporting a reacceleration narrative.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
AppLovin guided Q3 revenue of $2.055–$2.085 billion (≈46%–48% YoY, ≈7%–8% sequential) and adjusted EBITDA of $1.71–$1.74 billion (≈48%–50% YoY) implying an adjusted EBITDA margin of ~83%; the outlook incorporates model improvements already live, higher training/inference compute costs (management noted roughly $0.10 of compute per incremental dollar of revenue) and explicitly excludes additional model releases not yet deployed. For context, Q2 actuals were $1.92 billion revenue (+53% YoY, +4% QoQ) and $1.61 billion adjusted EBITDA (+58% YoY, margins +~300 bps, 70% QoQ flow‑through), free cash flow of $863 million (conversion expected to normalize to ~75% of adjusted EBITDA for the full year), ending cash of $3.05 billion vs. $3.7 billion total debt (net leverage ≈0.1x TTM adj. EBITDA), 335 million shares outstanding after repurchasing ~1.14 million shares for $551 million with ~$1.8 billion remaining authorization, and management reiterated a long‑term growth view of roughly 30% annual compounding.
AppLovin Financial Statement Overview
Summary
Fundamentals are strong overall: Income Statement strength is exceptional (92) with very high margins and improved TTM growth; Cash Flow is a standout (95) with strong operating/FCF and high cash-to-earnings conversion. The main offset is balance-sheet risk (68) from still-meaningful leverage (debt > equity), despite improvement versus 2024.
Income Statement
92Very PositiveBalance Sheet
68PositiveCash Flow
95Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.83B | 5.48B | 3.22B | 1.84B | 2.82B | 2.79B |
| Gross Profit | 6.04B | 4.82B | 2.70B | 1.49B | 1.56B | 1.81B |
| EBITDA | 5.55B | 4.35B | 2.38B | 1.26B | 513.77M | 580.54M |
| Net Income | 4.41B | 3.33B | 1.58B | 357.21M | -192.75M | 35.45M |
Balance Sheet | ||||||
| Total Assets | 8.27B | 7.26B | 5.87B | 5.36B | 5.85B | 6.16B |
| Cash, Cash Equivalents and Short-Term Investments | 3.05B | 2.49B | 741.41M | 502.15M | 1.08B | 1.52B |
| Total Debt | 3.52B | 3.54B | 3.56B | 3.18B | 3.28B | 3.33B |
| Total Liabilities | 5.11B | 5.12B | 4.78B | 4.10B | 3.95B | 4.03B |
| Stockholders Equity | 3.16B | 2.13B | 1.09B | 1.26B | 1.90B | 2.14B |
Cash Flow | ||||||
| Free Cash Flow | 4.50B | 3.94B | 2.09B | 1.06B | 412.11M | 360.46M |
| Operating Cash Flow | 4.53B | 3.97B | 2.10B | 1.06B | 412.77M | 361.85M |
| Investing Cash Flow | -72.53M | 402.81M | -106.75M | -77.83M | -1.37B | -1.21B |
| Financing Cash Flow | -2.64B | -2.59B | -1.75B | -1.56B | -526.85M | 3.11B |
AppLovin Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APP, the sentiment is Negative. The current price of 245.51 is below the 20-day moving average (MA) of 263.23, below the 50-day MA of 291.60, and below the 200-day MA of 412.31, indicating a bearish trend. The MACD of -15.25 indicates Positive momentum. The RSI at 37.36 is Neutral, neither overbought nor oversold. The STOCH value of 19.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APP.
AppLovin Risk Analysis
AppLovin disclosed 47 risk factors in its most recent earnings report. AppLovin reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksAppLovin Peers Comparison
Overall Rating
DV80Outperform
ZETA78.3Outperform- APP75Outperform
U66Neutral
PUBM64Neutral
APPS53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DV | 80Outperform | $2.12B | 33.02 | 5.82% | ― | 7.16% | 51.45% |
| ZETA | 78Outperform | $7.66B | -3519.32 | -0.26% | ― | 35.91% | 94.31% |
| APP | 75Outperform | $76.58B | 18.78 | 193.10% | ― | 28.52% | 90.65% |
| U | 66Neutral | $17.11B | -29.76 | -18.85% | ― | 13.98% | -27.86% |
| PUBM | 64Neutral | $709.21M | -53.83 | -5.41% | ― | -1.04% | -710.67% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| APPS | 53Neutral | $1.03B | -40.68 | -14.77% | ― | 19.24% | 60.41% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| APP | AppLovin Corp. Class A | 245.51 | -375.85 | -60.49% | |
| APPS | Digital Turbine Inc. | 9.19 | 2.93 | 46.81% | |
| U | Unity Software, Inc. | 40.48 | 0.55 | 1.38% | |
| PUBM | Pubmatic Inc | 16.15 | 8.77 | 118.83% | |
| DV | Doubleverify Holdings, Inc. | 13.54 | 2.57 | 23.43% | |
| ZETA | Zeta Global Holdings Corp. Class A | 30.97 | 11.39 | 58.17% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 31, 2026