The U.S. Securities and Exchange Commission confirmed on February 20, 2026 that its investigation into AppLovin Corporation remains active, according to Bloomberg News. The probe began in October 2025 after a whistleblower complaint and a series of short‑seller reports raised concerns about the company’s data‑collection practices.
The investigation centers on alleged violations of platform partners’ service agreements and the use of unauthorized tracking methods such as device fingerprinting, which Apple prohibits and Google had previously restricted. The SEC has not released specific allegations or formally accused AppLovin of wrongdoing, but the focus on data‑privacy and advertising disclosures signals a regulatory push against ad‑tech practices.
AppLovin has responded that it regularly engages with regulators and will disclose any material developments. CEO Adam Foroughi highlighted the company’s AI capabilities and strong profitability, noting that Q4 2025 revenue rose 66% to $1.66 billion and net income 84% to $1.10 billion—figures that underscore robust financial health amid regulatory scrutiny.
Market reaction to the confirmation was muted; shares pared earlier gains on February 20, 2026, as investors weighed the potential impact of the probe on future earnings and reputation. Analyst Convequity cautioned that the investigation could lead to further declines, advising a wait for a lower entry point.
The probe’s timing coincides with heightened regulatory focus on ad‑tech data practices, adding headwinds to an industry already navigating privacy reforms. However, AppLovin’s expanding e‑commerce advertising platform and high EBITDA margins (84% in Q4 2025) suggest resilience and potential upside if the company can navigate the investigation without material penalties.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.