TLDR
AppLovin beat Q4 estimates with $3.24 EPS versus $2.95 expected and $1.66 billion revenue versus $1.6 billion forecast, up 66% year-over-year.
Shares fell 9% after-hours as Q1 2026 guidance showed 52% revenue growth, slower than recent quarters, raising concerns about momentum.
CEO Adam Foroughi defended AppLovin’s AI technology against Meta and startup competitors, citing “strongest operating performance in our history.”
Stock down 30% in 2026 following short-seller allegations, SEC investigation, Google Project Genie launch, and Unity Software’s 26% drop Wednesday.
Q4 free cash flow surged 88% to $1.31 billion while full-year 2025 revenue hit $5.48 billion, up 70% from prior year.
AppLovin delivered a solid earnings beat Wednesday. Wall Street still sent shares lower.
#AppLovin $APP, Q4-25.
Results:
EPS: $3.24 
Revenue: $1.66B 
Net Income: $1.10B
Adjusted EBITDA surged to $1.40B with an 84% margin, while Free Cash Flow reached $1.31B. pic.twitter.com/h5YKKw26F5
— EarningsTime (@Earnings_Time) February 11, 2026
The mobile advertising platform reported Q4 earnings per share of $3.24. That topped analyst estimates of $2.95 by nearly 10%. Revenue came in at $1.66 billion, beating the $1.6 billion consensus and jumping 66% from last year.
But investors focused on what’s ahead. Shares dropped as much as 9% in after-hours trading following the report. The stock had already declined 3.4% during regular hours.
The selloff appears driven by decelerating growth in the company’s Q1 2026 guidance. AppLovin forecasts revenue between $1.745 billion and $1.775 billion, implying 52% growth. That’s down from the blistering pace of recent quarters.
CEO Addresses Competition Head-On
Analysts grilled CEO Adam Foroughi about competition from Meta Platforms during the earnings call. Foroughi didn’t back down.
“When I look at our internal dashboards, we’re delivering the strongest operating performance in our history,” he said. “What’s fueling that growth is our own AI models.”
The CEO acknowledged a disconnect between market fear and business reality. “There is a real disconnect between market sentiment and the reality of our business,” Foroughi stated.
AppLovin’s platform specializes in mobile app advertising, particularly for games. It’s carved out a dominant position in this digital advertising niche.
But the stock has faced brutal headwinds in 2026. Shares are down over 30% year-to-date.
Short-seller reports last year claimed violations of Apple and Google app store policies. An SEC investigation into data collection practices remains ongoing. January brought allegations of ties to international crime syndicates from CapitalWatch, though the firm later retracted those claims.
AI Narrative Whipsaws Shares
The AI story has hammered AppLovin stock recently. Google’s Project Genie launch in January sparked fears about AI-generated games. AppLovin dropped 17% that day.
Startup CloudX launched an AI-powered mobile ad product in February. AppLovin fell 16% on that news.
Yet some analysts see AI as an opportunity. Jefferies analyst Brent Thill argued that AI-generated games would make AppLovin’s discovery platform more valuable, not less.
Foroughi echoed that view on the call. “For the past few weeks, there’s been a lot of discussion about how AI and competition will challenge our business,” he said. “If the market chooses to price our stock based on fear while we continue to compound revenue, cash flow and product capability, we’ll stay focused on execution.”
CFO Matt Stumpf highlighted the financial performance. “The combination of growth, profitability, Free Cash Flow, and capital returns we’re delivering is extraordinarily rare,” he said.
The numbers back that up. Q4 free cash flow jumped 88% year-over-year to $1.31 billion. Full-year 2025 free cash flow reached $3.95 billion, up 91%.
Adjusted EBITDA hit $1.4 billion in Q4, representing an 84% margin. The company expects to maintain that margin in Q1 2026 with adjusted EBITDA between $1.465 billion and $1.495 billion.
Full-year 2025 revenue totaled $5.48 billion, up 70% from 2024.
Unity Software reported disappointing guidance Wednesday morning before AppLovin’s release. Unity shares plunged 26%, weighing on AppLovin during regular trading. Unity competes directly with AppLovin in mobile advertising.
AppLovin projects Q1 2026 revenue growth of 5-7% sequentially from Q4 levels.
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