AppLovin Corporation (APP) AI Stock Analysis

AppLovin Corporation operates software solutions designed to help mobile app developers market and monetize their applications globally. Its portfolio includes AppDiscovery, a marketing platform that matches advertiser demand with publisher ad supply using auction mechanics. The company also offers Adjust, an analytics platform used to measure, optimize, and protect user data. For app monetization, AppLovin provides MAX, an in-app bidding solution that runs real-time competitive auctions to maximize advertising inventory revenue. Additionally, its Wurl platform provides connected TV services and streaming video distribution infrastructure to content companies, serving advertisers and internet platforms across the digital ecosystem.

Between FY2021 and FY2025, AppLovin expanded annual revenue from $2.79B to $5.48B, achieving a 5-year revenue CAGR of 30.4%. After revenue contracted 34.6% in FY2023 to $1.84B, it rebounded with 75.1% growth in FY2024 and 70.0% growth in FY2025. Gross margin widened from 64.6% in FY2021 to 87.9% in FY2025, while operating margin rose to 75.8% from 5.4% over the same timeframe. Net income reached $3.33B in FY2025, translating to diluted EPS of $10.67. For the latest quarter ended June 30, 2026, quarterly revenue grew 52.8% year-over-year, and quarterly earnings grew 57.0%.

As of June 30, 2026, AppLovin held $3.05B in cash and short-term investments against $3.52B in total debt, resulting in net debt of $461.8M. The company reported a current ratio of 4.30 and a debt-to-equity ratio of 1.11 on shareholders' equity of $3.16B. During FY2025, operating cash flow reached $3.97B while capital expenditures totaled $28.3M, yielding free cash flow of $3.94B. The company deployed $2.19B toward share buybacks in FY2025, contributing to a 5-year share count change of -1.4%.

AppLovin carries a market capitalization of $89.40B and an enterprise value of $105.96B. The stock trades at a trailing P/E of 20.5x, above the 17.1x median of its Nasdaq-100 Communication Services peers, but its forward P/E of 15.4x sits below the peer median of 21.9x. Its price-to-sales multiple is 13.1x compared to the peer median of 7.0x, and its EV/EBITDA is 19.1x versus the peer median of 12.5x. Over the past year, the shares fell 56.1%, trailing the S&P 500 (SPY) return of 16.8%.

AppLovin has 20 Strong Buy, 7 Buy, and 6 Hold recommendations from analysts, with no Sell or Strong Sell ratings. The mean price target of $480.08 represents an 80.4% premium over the last closing price of $266.13. For the fiscal year ending December 31, 2026, analysts estimate EPS of $15.65 on revenue of $8.09B. For the following fiscal year, 27 analysts project EPS of $19.92 on revenue of $10.20B. AppLovin has beaten EPS estimates in each of the last 4 quarters and is scheduled to report earnings on November 4, 2026.

This page is an AI-written research summary of AppLovin Corporation (APP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: APP income statement, APP balance sheet, APP key metrics, APP analyst forecast, APP chart. See the APP stock overview for the latest quote and news.