AppLovin Gets Buy Rating with 84% EBITDA Margin Despite 40% Stock Slide
AppLovin posted a net profit margin above 60% and an adjusted EBITDA margin of approximately 84% in Q4 2025, reflecting robust revenue growth. The stock has slid over 40% from its 2025 peak after a short report was retracted, while Jefferies initiated coverage with a Buy rating.
1. Financial Performance
In Q4 2025, AppLovin delivered significant revenue growth, achieving a net profit margin above 60% and an adjusted EBITDA margin of roughly 84%. These metrics underscore the company’s operational efficiency and strong cash generation in its mobile advertising business.
2. Stock Decline and Report Retraction
The share price has declined more than 40% from its 2025 peak following a broader market correction and a short seller report that was later retracted for inaccuracies. This volatility highlights market sensitivity to external narratives despite solid fundamentals.
3. Growth Outlook and Analyst Rating
AppLovin is positioned to capture additional ad budget share over the next 6–12 months, supported by a 1.30% ad conversion rate that outperforms peers. An analyst firm initiated coverage with a Buy rating, emphasizing the company’s strong margins and expansion prospects.