- Fourth-quarter revenue increased 66% year-over-year to $1.66 billion, beating expectations.
- Earnings per share increased 87% to $3.24 in the fourth quarter.
- AppLovin estimates 50% revenue growth in Q1 with stable margins.
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Despite delivering strong financial results, AppLovin shares have fallen by 40% this year.
As of the latest trading session, the stock was trading around $390.66, with a market cap of around $132 billion, down sharply from the recent peak.
The stock decline comes despite strong fourth-quarter results, where AppLovin reported Q4 2025 revenue of $1.66 billion, exceeding expectations by 66% year over year.
market pressure
However, widespread weakness in software stocks has weighed on sentiment in 2026. Shares fell 16% on February 4, coinciding with CloudX, an adtech startup formed by the founders of MoPub and Max, announcing general availability of its platform.
Unity later released its financial report on February 11, in which the company expressed optimism on the performance of its advertising platform Vector.
Despite outperforming expectations last quarter, Applovin’s stock fell nearly 20% after its earnings release on Feb. 12.
AppLovin forecasts first-quarter revenue between $1.745bn and $1.775bn, representing growth of about 50%, with adjusted EBITDA margin expected to remain stable at 84%.
Over the past year, AppLovin has pushed back against short-seller reports about its business practices, which it previously labeled “nefarious” and “misleading.”
CapitalWatch, which recently released its report issued an apology and dropped charges related to ties between Applovin shareholder Hao Tang and the criminal syndicate.