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AppLovin
(NASDAQ:APP)
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Rating:77Outperform
Price Target:
$591.00
▲(23.85% Upside)
Action:Reiterated
Date:06/10/26
The score is driven primarily by standout profitability and cash generation alongside very strong earnings momentum and upbeat guidance. Offsetting factors are meaningful leverage and a premium P/E, plus only mixed technical signals and high beta-driven volatility risk.
Positive Factors
Free cash flow generation
Sustained multi-billion dollar free cash flow is a durable strength: it funds organic product investment, sizable buybacks, and buffers macro cycles. High cash conversion also validates earnings quality and gives management flexibility for capex, M&A, or returning capital.
Negative Factors
Elevated leverage on balance sheet
Meaningful leverage raises exposure to revenue or margin shocks and limits financial optionality. In cyclical ad markets, sustained debt levels increase interest and refinancing risk, reducing the firm's ability to opportunistically invest or cushion downturns without altering capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained multi-billion dollar free cash flow is a durable strength: it funds organic product investment, sizable buybacks, and buffers macro cycles. High cash conversion also validates earnings quality and gives management flexibility for capex, M&A, or returning capital.
Read all positive factors
AppLovin Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Shows profitability across different business units, highlighting which segments are driving earnings and where there might be opportunities or challenges in cost management.
Shows profitability across different business units, highlighting which segments are driving earnings and where there might be opportunities or challenges in cost management.
Data provided by:
The Fly
The FlyAppLovin (APP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$160.27B
Dividend YieldN/A
Average Volume (3M)5.50M
Price to Earnings (P/E)42.6
Beta (1Y)3.56
Revenue Growth20.04%
EPS Growth101.03%
CountryUS
Employees876
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)11.72
Shares Outstanding305,732,000
10 Day Avg. Volume5,824,366
30 Day Avg. Volume5,502,855
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)106.94
Price to Sales (P/S)41.65
P/FCF Ratio57.90
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue26.25
Enterprise Value/Gross Profit29.71
Enterprise Value/Ebitda32.74
Forecast
1Y Price Target
$661.95Price Target Upside38.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
EPS Forecast (FY)16.11
Revenue Forecast (FY)$8.22B
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 marke...
How the Company Makes Money
AppLovin makes money primarily by generating revenue from its advertising and software offerings that facilitate and optimize the buying, selling, and serving of digital ads (especially in mobile apps). Key revenue streams include: (1) Advertising...
AppLovin Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call was strongly positive: management reported robust top-line growth (Q1 revenue +59% YoY), exceptional profitability (85% adjusted EBITDA margin, +66% YoY), sizable free cash flow and balance-sheet strength, and announced a major product milestone (Axon opening in June) alongside rapid consumer vertical acceleration (March +25% vs January; April record month). Risks cited were largely execution/timing related (onboarding/video rollout, early-stage initiatives, and third-party compute costs) but described as manageable and near-term resolvable. Overall, highlights substantially outweighed the lowlights, with the company positioned for continued compounding growth if product rollouts (notably video and self-serve Axon) execute as planned.Positive Updates
Record Revenue and Strong Top-Line Growth
Q1 revenue of $1.84B, up 59% year-over-year and 11% sequentially; management beat the high end of guidance and provided Q2 revenue guidance of $1.915B–$1.945B (52%–55% YoY growth).
Negative Updates
Onboarding Breakage and Video Tool Dependency
Management acknowledged onboarding 'breakage' in self-serve flows tied to creative/video availability; video generation remains in testing and must be delivered 'out of the box' to reduce friction prior to general release in June.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Q1 revenue of $1.84B, up 59% year-over-year and 11% sequentially; management beat the high end of guidance and provided Q2 revenue guidance of $1.915B–$1.945B (52%–55% YoY growth).
Read all positive updates
Company Guidance
AppLovin guided Q2 2026 revenue of $1.915–$1.945 billion (≈52%–55% YoY, 4%–6% sequential) and adjusted EBITDA of $1.615–$1.645 billion, implying an adjusted EBITDA margin of ~84%–85%. This follows Q1 results of $1.84 billion revenue (up 59% YoY, +11% QoQ), $1.56 billion adjusted EBITDA (up 66% YoY) and an 85% margin (≈400 bps expansion YoY) with 86% quarter‑over‑quarter flow‑through and $1.29 billion of free cash flow; management expects free cash‑flow conversion to normalize to ~75% of EBITDA for 2026. The company ended Q1 with $2.76 billion in cash, repurchased/withheld 2.23 million shares for $1.0 billion (336 million shares outstanding) and has ≈$2.3 billion remaining on its repurchase authorization, with capital allocation priorities unchanged: fund organic investment and return capital via buybacks.AppLovin Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
66
Positive
Cash Flow
93
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.16B | 5.48B | 3.22B | 1.84B | 2.82B | 2.79B |
| Gross Profit | 5.45B | 4.82B | 2.70B | 1.49B | 1.56B | 1.81B |
| EBITDA | 4.94B | 4.35B | 2.38B | 1.26B | 513.77M | 580.54M |
| Net Income | 3.96B | 3.33B | 1.58B | 357.21M | -192.75M | 35.45M |
Balance Sheet | ||||||
| Total Assets | 7.71B | 7.26B | 5.87B | 5.36B | 5.85B | 6.16B |
| Cash, Cash Equivalents and Short-Term Investments | 2.76B | 2.49B | 741.41M | 502.15M | 1.08B | 1.52B |
| Total Debt | 3.51B | 3.54B | 3.56B | 3.18B | 3.28B | 3.33B |
| Total Liabilities | 5.34B | 5.12B | 4.78B | 4.10B | 3.95B | 4.03B |
| Stockholders Equity | 2.36B | 2.13B | 1.09B | 1.26B | 1.90B | 2.14B |
Cash Flow | ||||||
| Free Cash Flow | 4.40B | 3.94B | 2.09B | 1.06B | 412.11M | 360.46M |
| Operating Cash Flow | 4.43B | 3.97B | 2.10B | 1.06B | 412.77M | 361.85M |
| Investing Cash Flow | 375.85M | 402.81M | -106.75M | -77.83M | -1.37B | -1.21B |
| Financing Cash Flow | -2.60B | -2.59B | -1.75B | -1.56B | -526.85M | 3.11B |
AppLovin Technical Analysis
Negative
477.20
Price Trends
496.68
Negative
462.14
Positive
540.95
Negative
Market Momentum
-12.81
Positive
45.22
Neutral
32.66
Neutral
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 477.2 is below the 20-day moving average (MA) of 519.09, below the 50-day MA of 496.68, and below the 200-day MA of 540.95, indicating a bearish trend. The MACD of -12.81 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 32.66 is Neutral, 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AppLovin Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $160.27B | 42.56 | 222.04% | ― | 20.04% | 101.03% | |
73 Outperform | $8.70B | 20.31 | 16.91% | ― | 15.55% | 6.91% | |
73 Outperform | $4.57B | 56.78 | 7.31% | ― | 24.38% | 25.18% | |
69 Neutral | $449.89M | -11.61 | -19.29% | ― | 12.27% | 37.41% | |
64 Neutral | $12.32B | -18.03 | -21.33% | ― | 7.55% | -39.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $362.23M | -39.17 | -1.42% | ― | 2.59% | -49.59% |
* Communication Services Sector Average
APP
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AppLovin Corporate Events
Executive/Board ChangesShareholder Meetings
AppLovin Shareholders Back Board, Governance Changes at Meeting
Positive
Jun 5, 2026
On June 3, 2026, AppLovin held its annual meeting of stockholders, where investors elected nine directors to serve until the 2027 annual meeting, reaffirming the existing board’s oversight of the company. Stockholders also ratified Deloitte ...
Business Operations and StrategyExecutive/Board Changes
AppLovin Announces Leadership Succession and Governance Changes
Positive
Apr 7, 2026
On April 7, 2026, AppLovin announced a series of leadership succession moves, including the July 1, 2026 transition of longtime Chief Technology Officer Basil Shikin to a Distinguished Engineer role and the elevation of Chief Product and Engineeri...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.