AppLovin Corp. Class A (APP)
NASDAQ:APP
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AppLovin
(NASDAQ:APP)
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Rating:76Outperform
Price Target:
$529.00
▲(10.85% Upside)
Action:Upgraded
Date:05/09/26
The score is led by standout financial performance (surging profitability and strong, high-quality free cash flow) and a confident earnings outlook with continued high margins. These positives are tempered by balance-sheet leverage and execution/competition risks highlighted on the call, while technicals remain mixed with longer-term trend pressure and valuation provides limited cushion.
Positive Factors
High-quality free cash flow
TTM operating and free cash flow roughly equaling reported earnings indicates high earnings quality and durable cash conversion. This provides long-term financial flexibility to fund product investment, M&A, or buybacks and cushions the business through advertising cycles.
Negative Factors
Meaningful leverage on balance sheet
Elevated debt-to-equity (~1.5x) increases sensitivity to earnings shocks or ad-market downturns and limits flexibility for large incremental investments. While improving, leverage still raises refinancing and cyclical risk relative to lower-debt software peers over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High-quality free cash flow
TTM operating and free cash flow roughly equaling reported earnings indicates high earnings quality and durable cash conversion. This provides long-term financial flexibility to fund product investment, M&A, or buybacks and cushions the business through advertising cycles.
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
$168.31B
Dividend YieldN/A
Average Volume (3M)4.68M
Price to Earnings (P/E)27.8
Beta (1Y)3.50
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. Volume6,155,116
30 Day Avg. Volume4,684,538
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 Cap0.96
Enterprise Value/Revenue26.11
Enterprise Value/Gross Profit29.55
Enterprise Value/Ebitda33.36
Forecast
1Y Price Target
$647.67Price Target Upside35.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)16.02
Revenue Forecast (FY)$8.17B
AppLovin Business Overview & Revenue Model
Company Description
AppLovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. The company's software solutions include AppDiscovery, a...
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:Feb 11, 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 | 4.71B | 3.28B | 2.82B | 2.79B |
| Gross Profit | 5.45B | 4.82B | 3.54B | 2.22B | 1.56B | 1.81B |
| EBITDA | 4.82B | 4.35B | 2.34B | 1.15B | 513.77M | 580.54M |
| Net Income | 3.96B | 3.33B | 1.58B | 356.71M | -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
Neutral
477.20
Price Trends
447.06
Positive
483.86
Negative
532.59
Negative
Market Momentum
11.13
Negative
52.40
Neutral
66.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APP, the sentiment is Neutral. The current price of 477.2 is above the 20-day moving average (MA) of 470.64, above the 50-day MA of 447.06, and below the 200-day MA of 532.59, indicating a neutral trend. The MACD of 11.13 indicates Negative momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 66.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $168.31B | 27.85 | 222.04% | ― | 20.04% | 101.03% | |
71 Outperform | $10.60B | 67.32 | 16.91% | ― | 15.55% | 6.91% | |
71 Outperform | $3.89B | ― | 7.31% | ― | 24.38% | 25.18% | |
67 Neutral | $375.91M | ― | -19.29% | ― | 12.27% | 37.41% | |
64 Neutral | $11.86B | ― | -21.33% | ― | 7.55% | -39.50% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $428.31M | 12.05 | -1.15% | ― | -11.71% | -162.11% |
* Communication Services Sector Average
APP
AppLovin
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AppLovin Corporate Events
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.