APP vs U: How AppLovin and Unity Software Compare (2026)

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: APP is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. APP and U share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined APP and U exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

AppLovin is a mobile advertising-technology company. Its core engine, AXON, is a machine-learning system that matches advertisements to users across mobile apps and increasingly across e-commerce and connected TV. Advertisers pay AppLovin to place performance-based ads (the advertiser is charged when a user installs an app, makes a purchase, or takes another tracked action), and AXON continuously optimizes which ads to show to drive those outcomes. Because the heavy lifting is software and the model improves as it processes more spend, the advertising business runs at exceptionally high margins. In Q1 2026 AppLovin reported revenue of roughly $1.84 billion, up about 59% year over year, with an adjusted EBITDA margin near 85%.

Full APP guide

Unity Software Inc. builds and operates a real-time 3D development platform. Its Create Solutions business licenses the Unity game engine, used to build a large share of mobile games and increasingly non-gaming 3D applications, while its Grow Solutions business helps developers monetize and market apps through advertising, in-app purchases, and user acquisition. The two sides are linked: the engine gives Unity a vast base of games and data that its advertising business can draw on, and management now emphasizes strategic revenue split between Create and Grow.

Full U guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• APP drivers: The AXON AI advertising engine; Expansion into e-commerce and connected TV.
• U drivers: Vector ad platform momentum; Engine leadership and Create stability.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The bear case is real and several-sided. For U, the dominant risk is competition in advertising: AppLovin is widely seen as the dominant force in mobile ad monetization, and Unity must keep taking share with Vector to justify its growth premium, which is far from guaranteed.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick APP if you believe its drivers more; U if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the APP and U guides.

APP. AppLovin trades at a clear premium to the broader software group, which the market has tolerated because of the combination of high growth and roughly 85% adjusted EBITDA margins. Revenue is now essentially all advertising after the mid-2025 sale of the games business, so reported margins and growth rates look different from the company's dual-business history. All figures are approximate as of June 2026 and refresh each quarter; verify against AppLovin's investor relations page or your broker.

U. Figures are approximate and tied to the asOf date; verify live numbers before acting. Because Unity has been unprofitable on a GAAP basis, investors focus on revenue growth, adjusted EBITDA, and free cash flow rather than a P/E ratio, and the stock tends to trade on the perceived durability of the Vector-led turnaround. A rich multiple prices in continued ad-share gains, so results that fall short of that expectation can move the stock sharply.

Headline figures (approximate, June 2026): APP shows revenue (ttm, now nearly all advertising) ~$6 billion+, growing roughly 59% year over year in the latest quarter, q1 2026 revenue ~$1.84 billion, up ~59% year over year, adjusted ebitda margin ~85% in Q1 2026, among the highest the company has reported, free cash flow (q1 2026) ~$1.29 billion; U shows revenue (q1 2026) ~$508 million total, with strategic revenue growing strongly year over year, grow segment Strong year-over-year growth on Vector momentum (the larger strategic segment), create segment More modest year-over-year growth (engine subscriptions), adjusted ebitda (q1 2026) Roughly $130 to $140 million, up sharply with margin expansion.

APP and U are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined APP and U exposure against your real portfolio. It is not an investment adviser.