Executive summary
AppLovin (APP), Unity (U) and Digital Turbine (APPS) occupy adjacent positions in mobile adtech: AppLovin is a large-scale performance ad platform that recently exited game development to focus on high-margin adtech; Unity is a broader real-time content and monetization platform with a growing ad network and AI-led product push; Digital Turbine is a smaller, device-focused distribution and monetization platform evolving toward higher-margin App Growth services. AppLovin reported Q2 2025 revenue of $1.259B and strong adjusted EBITDA; Unity reported Q2 2025 revenue of $441M with improving cash and guidance; Digital Turbine reported FY-2025 revenue $490.5M and FY-2025 non-GAAP EBITDA recovery. Market moves in 2025 have been momentum-driven: AppLovin’s share price has surged YTD, Unity is recovering on product and ad traction, and Digital Turbine is rerating on operational improvement and guidance. (Q4 Holdings)
Fundamental metrics
Revenue growth and scale
- AppLovin (APP): Q2 2025 revenue $1,259M; TTM revenue ≈ $5.7B. Growth powered by ad monetization and sale/reshaping of app assets. (Q4 Holdings)
- Unity (U): Q2 2025 revenue $441M; TTM revenue ≈ $1.78B (slightly down YoY; create + grow segmentation dynamics changing mix). (Yahoo Finance)
- Digital Turbine (APPS): FY-2025 revenue $490.5M; trailing-12-month revenue ≈ $500M. Recent quarters show modest sequential recovery in On-Device and App Growth segments. (Digital Turbine, Inc.)
Profitability, margins and EPS trends
- AppLovin: Q2 2025 net income and adjusted EBITDA expanded (net income reported, adjusted EBITDA robust); margin profile for core adtech has improved materially after exiting native app development. (See Q2 press release for adjusted EBITDA and FCF figures.) (Q4 Holdings)
- Unity: GAAP remains loss-making but adjusted metrics beat; Unity reported adjusted EPS and slight operating improvement in Q2 2025 while investing in Unity Vector / ad network expansion. (Yahoo Finance)
- Digital Turbine: GAAP loss in FY-2025 but non-GAAP adjusted EBITDA recovered to $72.3M for the year; margins improving as on-device volumes stabilize. (Digital Turbine, Inc.)
Leverage / balance-sheet
- AppLovin: cash & equivalents $1.19B; total debt ~$3.51B; total debt / equity ~300% (mrq). High leverage relative to cash but offset by large free-cash-flow generation for a capital-light ad platform. (SEC)
- Unity: cash & equivalents $1.70B; total debt ~$2.23B; debt/equity ≈ 65–70% (mrq). Liquidity improved through equity and refinancing; debt load meaningful but manageable vs cash runway. (Unity Technologies)
- Digital Turbine: total debt ~$400M; stockholders’ equity ~$152M → debt/equity ≈ 2.6x; balance sheet leverage elevated given smaller revenue base. (Macrotrends)
Market valuation snapshots (market-priced multiples)
- AppLovin: market capitalization and EV re-rated strongly in 2025; TTM revenue ≈ $5.7B producing EV/Revenue in the mid-teens–low-double-digits depending on snapshot; market is pricing margin durability and growth optionality. (StockAnalysis)
- Unity: market cap in the high-teens billions vs TTM revenue ≈ $1.78B → P/S ≈ 9–10× (varies with intraday pricing). Market is paying for platform market share and ad expansion optionality. (StockAnalysis)
- Digital Turbine: market cap sub-$1B with TTM revenue ≈ $500M → P/S ≈ 1.0–1.2×; valuation reflects smaller scale and higher balance-sheet risk. (StockAnalysis)
Momentum indicators (price & technical context)
- AppLovin (APP): strong technical momentum in 2025 — moving averages (MA20/MA50/MA200) are bullish; 14-day RSI elevated (~80 on some technical screens) indicating near-term overbought. Technical providers show a “Buy” on moving averages but warn overbought RSI. YTD performance ≈ +97.6% (as of 9/25/2025). (TipRanks)
- Unity (U): mixed/neutral technicals: price above key longer-term MAs; RSI in neutral range (~60 on TipRanks); MACD modestly positive on some providers — momentum recovering after earlier weakness. 12-month performance strong (≈+90% in some snapshots). (TipRanks)
- Digital Turbine (APPS): technical momentum has been strong year-to-date; RSI and moving averages show bullish signal on multiple providers (RSI mid-50s–60s), and YTD gains reported >200% in several market summaries reflecting a significant rerating. Volatility remains high. (Barchart.com)
Peer comparison: apples-to-apples (brief)
- AppLovin vs Unity: AppLovin is a focused adtech monetization and performance platform with much larger ad revenue scale; Unity combines developer tools + runtime + monetization — Unity’s ad revenue and AI investments are the lever for higher monetization per developer. AppLovin currently shows higher EBITDA margin on core ad business; Unity shows more diversified product leverage. (Q4 Holdings)
- AppLovin vs Digital Turbine: AppLovin is much larger, more profitable on an adjusted basis, and valued for margin durability; Digital Turbine is smaller, device/distribution oriented and trading closer to single-digit P/S with improvement tied to on-device recovery. (StockAnalysis)
Most recent earnings highlights and management guidance
- AppLovin Q2 2025: Revenue $1,259M; net income and adjusted EBITDA expanded; company closed the sale of its Apps/gaming business and emphasized core adtech growth and product launches (e.g., CTV/streaming ad product Wurl) and issued strong near-term guidance. (Q4 Holdings)
- Unity Q2 2025: Revenue $440.9M; adjusted EPS beat; management called out Unity Vector (AI) and Unity Ad Network growth, guiding Q3 revenue roughly flat to modest growth while reiterating investment in AI and monetization. Cash and restricted cash rose to $1.70B. (Yahoo Finance)
- Digital Turbine Q1 FY-2026 (quarter ended Jun 30, 2025): Revenue $134.6M (Q3 FY-2025 earlier), FY-2025 revenue $490.5M; management highlighted debt refinancing, margin recovery (non-GAAP EBITDA positive), and raised guidance in some quarters while noting revenue lumpiness tied to partner/device cycles. (Yahoo Finance)
Strategic moves, catalysts, and risks (from latest filings and releases)
AppLovin — catalysts and risks
- Catalysts: sale of apps division to focus on adtech; product expansion into connected TV and small-business advertising; large adjusted-EBITDA margins that can fund buybacks or M&A. (Q4 Holdings)
- Risks: regulatory and platform policy scrutiny (short-seller claims previously raised), high gross debt load (~$3.5B) despite large cash flow profile. (SEC)
Unity — catalysts and risks
- Catalysts: Unity Vector (AI), expanding ad network monetization, developer tooling that deepens ecosystem revenue capture, improved FCF generation as license mix normalizes. (SEC)
- Risks: legacy restructuring and prior goodwill/asset volatility; continued investment needs that keep GAAP losses until monetization scales; material debt (~$2.2B) and refinancing dynamics. (SEC)
Digital Turbine — catalysts and risks
- Catalysts: device distribution recovery, App Growth Platform traction, balance-sheet stabilization after refinancing; upgrades from sell-side tied to resumed growth. (Digital Turbine, Inc.)
- Risks: high leverage relative to equity, revenue cyclicality tied to OEM/carrier device rollouts and large partner contracts, and legacy goodwill/impairment history. (Digital Turbine, Inc.)
Valuation and technical considerations — integrated view
- AppLovin trades as a scaled adtech leader with premium multiples justified by margin expansion and product optionality; technical indicators show strong momentum but high RSI warns of short-term mean reversion risk. Debt load warrants monitoring of free-cash-flow conversion vs coupon servicing. (Q4 Holdings)
- Unity’s valuation prices a re-ramping platform story (developer tools + ads + AI); technicals are mixed but improving; valuation multiples (P/S ≈ 9–10× on ~ $1.8B TTM revenue) require sustained ad monetization and enterprise adoption of Unity Vector. (StockAnalysis)
- Digital Turbine’s valuation looks conservative (P/S ≈ 1×) and its rerating will require durable revenue acceleration and margin improvement; technical momentum is positive, but balance-sheet leverage (debt ≈ $400M vs equity ≈ $150M) is a structural vulnerability. (StockAnalysis)
Bottom-line synthesis
- Winner-by-scale and margin: AppLovin — largest ad revenue base, strongest adjusted EBITDA, product focus after apps sale gives clean adtech comp set; valuation and leverage must be monitored. (Q4 Holdings)
- Winner-by-platform optionality: Unity — diversified platform exposure (create + run + monetize) and a levered ad network plus AI initiatives that can expand monetization per developer; execution risk remains on converting product investments to sustained revenue growth. (Yahoo Finance)
- Winner-by-risk/reward asymmetric upside: Digital Turbine — lower valuation today but requires continued operational recovery to justify rerating; greatest sensitivity to device cycles and partner wins. (Digital Turbine, Inc.)
