| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 33 | 24.9x | 17.8x | Bottom tier | |
Growth | 95 | 76.3% | 7.1% | Top tier | |
Quality | 99 | 78.6% | 4.5% | Top tier | |
Safety | 85 | 0.1x | 2.6x | Top tier | |
Capital Return | 49 | — | 2.12% | Around median | |
Momentum | 11 | -29.3% | 2.9% | Bottom tier | |
Sentiment | 61 | 20 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
AppLovin operates a digital advertising platform that uses machine learning models to match advertisers with users and achieve return on ad spend targets. Mobile gaming advertising still accounts for the majority of revenue, and its growth depends heavily on improvements in model performance that allow advertisers to increase budgets profitably. The company is expanding into the consumer and e-commerce sector through AppLovin Ads Manager, initially targeting mid-sized brands and attracting them through partnerships such as the collaboration currently being tested with Triple Whale.
In fiscal Q2 2026, AppLovin reported revenue of $1.92 billion, representing 53% year-over-year growth and 4% sequential growth, but it came in below the midpoint of the company's guidance range and below revenue expectations of $1.94 billion. Adjusted earnings before interest, taxes, depreciation, and amortization totaled approximately $1.7 billion, with an adjusted earnings margin before interest, taxes, depreciation, and amortization of 88.4% and an operating margin of 77.1%.
Adjusted earnings before interest, taxes, depreciation, and amortization totaled $1.61 billion in fiscal Q2 2026, up 58% year over year with a margin exceeding 80%, while free cash flow totaled $863 million. Gaming remained the largest revenue component, while consumer advertiser spending rose to a record level more than 28% above fiscal Q4 2025. The company ended the quarter with $3.05 billion in liquidity versus $3.7 billion in total debt, with net leverage of approximately 0.1 times adjusted earnings for the trailing twelve months.
The average analyst price target is $527.20, with a buy consensus and a wide range of $325 to $790; the highest target exceeds the top of the 52-week range of $745.61, while the lowest target is close to the bottom of the range at $297.50. This dispersion reflects significant differences in estimates of the ability of model improvements and e-commerce expansion to sustain high growth and margins exceeding 80%. The valuation assessment remains less clear because no specific price-to-earnings multiple is available, while the target reductions following the August 5, 2026 results represent a negative counterbalance to the continued buy consensus.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
AppLovin reported revenue of $1.92 billion, below expectations of $1.94 billion and slightly below the midpoint of the company's guidance range. Adjusted earnings before interest, taxes, depreciation, and amortization of $1.61 billion also came in below the guidance range. Management attributed the shortfall to a significant improvement in model performance arriving after the end of the quarter rather than during it. On August 6, 2026, the provided news indicated that the stock fell 20% and that analysts lowered their price targets while maintaining buy ratings.
The company expects revenue between $2.055 billion and $2.085 billion, representing year-over-year growth of 46% to 48% and sequential growth of 7% to 8%. It expects adjusted earnings before interest, taxes, depreciation, and amortization between $1.71 billion and $1.74 billion, representing year-over-year growth of 48% to 50%. The target adjusted earnings margin is approximately 83% despite higher training and computing costs. The guidance includes model improvements that have already been deployed and does not assume the launch of additional models that have not yet gone live.
Automated analysis for informational purposes only — not investment advice.
Gaming still accounts for the majority of revenue, but consumer advertiser spending in fiscal Q2 2026 exceeded the fiscal Q4 2025 level by 28%. AppLovin Ads Manager focuses on mid-sized brands because their data and budgets enable the models to learn and achieve return on ad spend targets better than those of smaller customers. The company is using partnerships with platforms such as Triple Whale to reach these advertisers, but the expansion is still in its early stages and the advertiser base remains more concentrated than the gaming business.
Management identified the production of advertising materials as the biggest obstacle to expanding the platform. AppLovin's tools can generate an interactive end card with high efficiency, but they do not yet reliably produce high-quality videos lasting between 30 and 60 seconds for every advertiser. Mid-sized and large brands are more likely to possess such materials, while many smaller companies lack them. Therefore, the transition to one-click campaigns and broad access to smaller customers depends on improving video tools or developing templates that do not require video.
AppLovin ended fiscal Q2 2026 with $3.05 billion in liquidity and $3.7 billion in total debt. Net leverage was approximately 0.1 times adjusted earnings for the trailing twelve months, compared with a long-term level that management expects to be approximately one time. During the quarter, the company repurchased or committed to repurchase approximately 1.14 million shares for $551 million, with approximately $1.8 billion remaining under the authorization. Management attributed the slower pace of repurchases compared with approximately $1 billion in fiscal Q1 2026 to free cash flow declining to $863 million because of the timing of international tax and interest payments.
