AppLovin: Rapid Revenue Expansion
AppLovin (APP 2.61%) provides specialized software infrastructure designed to help mobile application developers market their creations efficiently, optimize their ad campaigns, and generate consistent advertising income worldwide.
It launched a new social networking application called Gist alongside ongoing regulatory inquiries, and reported a net income margin of 65% for the quarter ended March 31, 2026.
Fastly: Gradual Revenue Increases
Fastly (FSLY 3.64%) offers an advanced edge cloud computing infrastructure designed to efficiently manage, distribute, and secure digital applications for a wide array of clients across global markets.
It launched a new data center facility in West Florida while addressing a performance incident in Tokyo, and recorded a net income margin of -12% for the quarter ended March 31, 2026.
Why Revenue Matters for Retail Investors
Revenue serves as the fundamental measure of total sales and indicates a business’s ability to attract paying customers before operating expenses are deducted.
Quarterly Revenue for AppLovin and Fastly
| Quarter (Period End) | AppLovin Revenue | Fastly Revenue |
|---|---|---|
| Q2 2024 (June 2024) | $711.0 million | $132.4 million |
| Q3 2024 (Sept. 2024) | $835.2 million | $137.2 million |
| Q4 2024 (Dec. 2024) | $1.4 billion | $140.6 million |
| Q1 2025 (March 2025) | $1.2 billion | $144.5 million |
| Q2 2025 (June 2025) | $1.3 billion | $148.7 million |
| Q3 2025 (Sept. 2025) | $1.4 billion | $158.2 million |
| Q4 2025 (Dec. 2025) | $1.7 billion | $172.6 million |
| Q1 2026 (March 2026) | $1.8 billion | $173.0 million |
Data source: Company filings. Data as of July 10, 2026.
Foolish Take
In comparing the revenue trends for AppLovin and Fastly, the former is clearly a beast. Its sales rose every quarter in 2025, and in the first quarter of 2026, its revenue skyrocketed a whopping 59% year over year.
Meanwhile, Fastly’s Q1 sales represented excellent year-over-year growth of 20%. However, its stock fell in May after it forecasted 2026 sales to come in between $710 million to $725 million.
If Fastly reached the top of that range, it would be about a 16% year-over-year increase over 2025 revenue of $624 million. That growth did not impress Wall Street, leading to a stock sell-off.
AppLovin expects its Q2 sales to continue the trend of quarter-over-quarter increases, forecasting about $1.9 billion. The company’s incredible revenue expansion demonstrates the lucrative nature of the mobile advertising market.
Consequently, AppLovin stock trades at a very high valuation versus Fastly. At a price-to-sales ratio of 28, AppLovin is expensive compared to Fastly’s sales multiple of four. While Fastly isn’t the fast one when it comes to revenue growth, its slow and steady expansion through high-margin products enabled the company to achieve record first-quarter gross margin of 62.5%.
