AppLovin (APP)

• The Securities and Exchange Commission (SEC) confirmed its probe into mobile ad-tech firm AppLovin is active and ongoing, though the SEC has not detailed the scope or accused the company or its executives of wrongdoing.
• The SEC refused to release internal correspondence, citing concerns that disclosure could harm the investigation by enabling evidence fabrication, influencing witness testimony, or allowing material alteration.
• The inquiry reportedly stems from a whistleblower complaint and several short-seller reports.
• Despite the regulatory scrutiny, AppLovin's shares rose 3.1% on Friday, with the company reporting strong financial metrics including $5.81 billion in revenue and 28.3% revenue growth over the past three years.

• AppLovin is pivoting its strategy to build its own social networking platform following a failed bid for TikTok's non-China operations and the divestment of its games portfolio.
• The company plans to leverage its vertically integrated ad-tech stack, including AppDiscovery (roughly 80% of revenue), to gain greater access to user data and increase its share of the mobile advertising market.
• This strategic shift will place AppLovin in direct competition with established social players like Meta and Snap.
• Despite a ~40% year-to-date share decline and short-seller scrutiny, shares rose about 2% on the news, and analysts maintain a Strong Buy consensus with an average price target of $674.37.

• AppLovin reported Q4 2025 revenue of $1.66 billion, up 66% year-over-year, and full-year 2025 revenue of $5.48 billion, up 70% year-over-year.
• Adjusted EBITDA for Q4 2025 was $1.4 billion (up 82% year-over-year) with an 84% margin, and $4.51 billion for the full year (up 87% year-over-year) with an 82% margin.
• The company generated $1.31 billion in Free Cash Flow in Q4 2025 (up 88% year-over-year) and $3.95 billion for the full year (up 91% year-over-year). AppLovin repurchased $482 million in shares during Q4 2025 and $2.58 billion for the full year, with $3.28 billion remaining in authorization.
• For Q1 2026, AppLovin expects revenue between $1.745 billion and $1.775 billion and Adjusted EBITDA between $1.465 billion and $1.495 billion, maintaining an approximate 84% margin. Management highlighted that AI models are fueling growth and will continue to improve, driving the business forward, and noted the launch of a self-service e-commerce platform in Q4 2025.

• AppLovin reported Q4 2025 revenue of $1.66 billion, an increase of 66% year-over-year, and Adjusted EBITDA of $1.4 billion, up 82% year-over-year, achieving an 84% margin.
• For the full year 2025, the company's revenue reached $5.48 billion, growing 70% year-over-year, with Adjusted EBITDA of $4.51 billion, up 87% year-over-year, at an 82% margin.
• The company provided Q1 2026 revenue guidance between $1.745 billion and $1.775 billion, representing 5%-7% sequential growth, and Adjusted EBITDA guidance between $1.465 billion and $1.495 billion, maintaining an 84% margin.
• AppLovin repurchased $2.58 billion worth of shares in FY 2025, reducing weighted average diluted shares outstanding from 346 million to 340 million over the last four quarters.
• Management highlighted that AI models are fueling growth and will continue to improve the business by lowering content creation costs and enhancing discovery platforms, while competition is viewed as a driver for innovation and ecosystem expansion.

• AppLovin delivered strong financial results for Q4 2025, with revenue of $1.66 billion, marking a 66% year-over-year increase, and Adjusted EBITDA of $1.4 billion, up 82% year-over-year with an 84% margin.
• For the full year 2025, the company achieved revenue of $5.48 billion, growing 70% year-over-year, and Adjusted EBITDA of $4.51 billion, an 87% year-over-year increase at an 82% margin.
• Free Cash Flow for Q4 2025 was $1.31 billion, an 88% increase year-over-year, contributing to a full-year total of $3.95 billion, up 91% year-over-year.
• The company provided Q1 2026 guidance, expecting revenue between $1.745 billion and $1.775 billion, representing 5%-7% sequential growth, and Adjusted EBITDA between $1.465 billion and $1.495 billion.
• AppLovin repurchased approximately 800,000 shares for $482 million in Q4 2025, bringing the full-year 2025 repurchases to 6.4 million shares for $2.58 billion, with a remaining authorization of $3.28 billion.

• AppLovin Corporation reported strong financial results for Q4 2025, with revenue of $1.66 billion and net income of $1.10 billion, representing 66% and 84% increases respectively compared to Q4 2024. For the full year 2025, revenue reached $5.48 billion and net income was $3.33 billion, up 70% and 111% from full year 2024.
• The company's Adjusted EBITDA for Q4 2025 was $1.40 billion, an 82% increase year-over-year, and $4.51 billion for the full year 2025, an 87% increase compared to the prior year.
• AppLovin provided Q1 2026 financial guidance, projecting revenue between $1.745 billion and $1.775 billion and Adjusted EBITDA between $1.465 billion and $1.495 billion.
• The company repurchased 0.8 million shares of its Class A common stock for $481.7 million during Q4 2025, and a total of 6.4 million shares for $2.58 billion for the full year 2025.

• AppLovin reported strong financial performance for the fourth quarter and full year ended December 31, 2025, with significant growth in key metrics.
• For the full year 2025, the company achieved $5,481 million in revenue, $3,334 million in net income, and $4,512 million in Adjusted EBITDA.
• AppLovin generated $3.95 billion in Free Cash Flow for the full year 2025 and repurchased $2.58 billion of Class A common stock during the same period.
• The company provided optimistic financial guidance for the first quarter of 2026, projecting revenue between $1,745 million and $1,775 million and Adjusted EBITDA between $1,465 million and $1,495 million.

Financial Highlights

• AppLovin shares tumbled roughly 7-8% on Friday, closing near $618-$626, marking a seventh consecutive session of losses and leaving the stock approximately 14% below its Dec. 22 record.
• The stock's slide took it beneath its 50-day moving average, positioning AppLovin as one of the worst performers in the S&P 500 that day.
• Market participants attributed the decline to rising Treasury yields and a shift away from high-multiple growth names, with the company's mid-February earnings window noted as a key upcoming catalyst.
• Despite some analyst bullishness, signs of insider selling, including a multi-million-dollar share sale by Chief Administrative & Legal Officer Victoria Valenzuela, and options positioning suggest traders are bracing for a sizable near-term move.
• Friday's trading volume was 3.52 million shares, which was below the stock's average daily volume of 4.39 million.

• AppLovin anticipates its mobile gaming vertical will sustain 20%-30% growth year-over-year, supported by the MAX Marketplace and ongoing Axon model enhancements.
• The new Axon self-serve platform for non-gaming advertisers, launched October 1st, is experiencing 50% week-over-week growth in its referral state, with new prospecting tools enabling "universally phenomenal" new customer acquisition.
• The company is developing AI-based creative tools to help new advertisers, particularly in e-commerce and small businesses, optimize ads for its platform, with image generation tools costing about $1 per image and video generation being more complex and costly.
• AppLovin expects a positive, gradual impact from direct payments in mobile gaming, projecting App Store fees to decrease from 30% to the 15%-20% range over 2026 and beyond, which should eventually increase advertising spend on platforms like theirs.
• The company plans to continue its share buyback program, with an increased authorization of $3.2 billion, while maintaining a lean operational structure with approximately 900 total headcount.

• AppLovin anticipates continued 20%-30% growth in its mobile gaming advertising business, driven by the MAX Marketplace and ongoing Axon model enhancements.
• The Axon self-serve platform for non-gaming advertisers has achieved a $1 billion run rate spend from over 600 e-commerce advertisers, with a new prospecting tool significantly improving new customer acquisition.
• The company plans to roll out AI-based image generation tools to customers soon and aims to acquire 182,500 new customers for its Axon Ads Manager within a year by investing $1 million daily in advertising.
• AppLovin maintains a lean operational structure with approximately 900 employees and intends to continue its $3.2 billion share buyback program.