AppLovin (NASDAQ:APP) delivered strong fourth-quarter results, with revenue climbing 20.8% year over year to $1.66 billion, beating Wall Street expectations by 2.2%. The mobile app technology company posted GAAP earnings of $3.24 per share, 10.1% above consensus estimates. Adjusted EBITDA reached $1.40 billion, representing an 84.4% margin.

For the first quarter of 2026, AppLovin provided optimistic guidance, projecting revenue of $1.76 billion at the midpoint, 3% above analyst estimates. EBITDA guidance of $1.48 billion also topped expectations by 6.2%. The company's operating margin expanded dramatically to 76.9%, up from 44.3% in the year-ago quarter, while free cash flow margin improved to 79%.

Despite the strong results, AppLovin shares fell 1.2% to $453.69 in after-hours trading, suggesting investors may have been expecting even stronger performance. The company, which operates over 200 free-to-play games and provides AI-powered advertising and analytics tools, has demonstrated impressive growth with a 30.4% compounded annual growth rate over five years.