APP Software - Application
AppLovin Corporation
AppLovin runs AI-powered advertising software. Its Axon Ads Manager helps advertisers acquire users, and MAX helps publishers of gaming apps sell their ad space; Axon Ads Manager makes up substantially all revenue. After selling its own mobile games (the Apps business) to Tripledot in June 2025, AppLovin is purely an advertising company. 2025 revenue rose 70% to $5.48 billion and net income was $3.33 billion, with about 900 employees. Growth continued in 2026, with Q2 revenue up 53% to $1.92 billion.
Last updated
Analysis last edited: October 9, 2026 · Financial data fetched: October 8, 2026 13:33 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- AppLovin Corp
- Headquarters
- PALO ALTO, CA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: APP
- Industry
- Software - Application
- CIK
- 1751008
- Website
- https://www.applovin.com/ ↗
Workforce (as of FY2025 year-end)
Employees
898
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 36–39 days after quarter end (Nov 5, 2025; Nov 6, 2024; Nov 8, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 36–45 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Aug 5, 2026 (+36 days) | Aug 5, 2026 10-Q (+36 days) |
| Q1 FY2026 | Mar 31, 2026 | May 6, 2026 (+36 days) | May 6, 2026 10-Q (+36 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 11, 2026 (+42 days) | Feb 19, 2026 10-K (+50 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 5, 2025 (+36 days) | Nov 5, 2025 10-Q (+36 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 6, 2025 (+37 days) | Aug 6, 2025 10-Q (+37 days) |
| Q1 FY2025 | Mar 31, 2025 | May 7, 2025 (+37 days) | May 7, 2025 10-Q (+37 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 12, 2025 (+43 days) | Feb 27, 2025 10-K (+58 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 6, 2024 (+37 days) | Nov 6, 2024 10-Q (+37 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 7, 2024 (+38 days) | Aug 7, 2024 10-Q (+38 days) |
| Q1 FY2024 | Mar 31, 2024 | May 8, 2024 (+38 days) | May 8, 2024 10-Q (+38 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 14, 2024 (+45 days) | Feb 26, 2024 10-K (+57 days) |
| Q3 FY2023 | Sep 30, 2023 | Nov 8, 2023 (+39 days) | Nov 8, 2023 10-Q (+39 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Advertising
Axon Ads Manager
Examples: User acquisition campaigns, LTV reporting
Powered by the Axon AI recommendation engine; substantially all revenue.
Advertising
MAX
Examples: In-app bidding for publishers
Runs a real-time competitive auction for each ad impression.
Advertising
Adjust
Examples: Measurement and analytics
Marketing measurement for app marketers.
Advertising
Wurl
Examples: Connected TV (CTV) distribution and advertising
Distributes streaming video and sells CTV ads.
From the FY2025 Form 10-K, Item 1.
04
Recent strategic focus
FY2025 from the 10-K, and 2026 events from 8-Ks.
Apps business sold
On June 30, 2025, AppLovin sold its Apps business to Tripledot for $400M in cash and about 20% of Tripledot's equity; it now reports one advertising segment.
Source: Form 10-K (FY2025)
Q2 2026 results
Revenue $1.92B (+53%), net income $1.27B; Q3 2026 revenue guidance $2.055–2.085B.
Source: Q2 2026 earnings release
Share repurchases
$2.2B of stock repurchased in 2025, with $3.3B of authorization remaining at year-end.
Source: Form 10-K (FY2025)
Leadership changes
CTO Basil Shikin stepped down July 1, 2026 (succeeded by Giovanni Ge), and Chief Administrative & Legal Officer Victoria Valenzuela retired August 1, 2026.
Source: 8-K filed 2026-04-07
Capex ÷ D&A (FY2025)
0.00x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$0M ÷ $195M = 0.00x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
4.1%
formularesearch & development expense ÷ revenue × 100
e.g.$227M ÷ $5,481M × 100 = 4.1%
M&A spend (5-year total)
$2.62B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $1M in FY2021 to $473,000 in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$5.48B
As reported in the 10-K
Revenue CAGR (4 years)
+18.4%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($5,481M ÷ $2,793M) ^ (1÷4) − 1 = 18.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
75.8%▲favorable
+70.4pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$4,152M ÷ $5,481M × 100 = 75.8%
ROE (FY2025)
206.8%▲favorable
5-year average: 71.2%
As reported in the 10-K
P/B (FY2025 end)
106.79x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.69.1x × $9.75 ÷ $6.31 = 106.79x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
53.2x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($230,396M + $3,513M − $2,487M) ÷ ($4,152M + $195M) = 53.2x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +18.4% a year over 4 years (strong growth)
From $2.79B in FY2021 to $5.48B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 5.4% → 75.8%
How much operating profit is left per $100 of revenue. It moved +70.4 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 29.4% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 71.2% over 5 years (latest: 206.8%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
An AI recommendation engine (Axon) matches advertisers with users across publishers' apps through auctions run at microsecond speed. Advertisers set return-on-ad-spend goals and are charged dynamically based on those goals.
01 what it draws on
Inputs & resources
- Axon AI recommendation engine
- Data on users and engagement from scaled distribution
- About 898 employees, 42% in R&D
02 what it does
Activities
- Axon Ads Manager: user acquisition for advertisers
- MAX: in-app bidding that sells publishers' ad inventory
- Adjust: measurement and analytics; Wurl: connected-TV distribution and ads
03 who it serves
Customers
- Advertisers in mobile apps, and newly web-based e-commerce advertisers
- App publishers
04 how money comes in
How it earns
- Fees from advertisers based on campaign goals
How the business makes money
- 2025 revenue $5.48B (+70%), driven by a 72% rise in net revenue per installation.
- Operating income $4.15B in 2025.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 52% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
2,827 (52%)Rest of world
2,653 (48%)
Source: Form 10-K (FY2025) — Note on revenue disaggregation Based on user location.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Advertisers are charged dynamically based on their campaign goals rather than a fixed price per impression, click, or install. Revenue can be seasonal with mobile gaming and e-commerce advertising demand.
- Spot / one-off transaction
Axon Ads Manager
Substantially all revenue
Typical term: Charged based on advertisers' return-on-ad-spend campaign goals
09
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Capital tie / equity stake
Tripledot
Bought AppLovin's Apps business in June 2025; AppLovin received $400M in cash plus about 20% of Tripledot's fully diluted equity.
10
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Advertisers (the 10-K ties demand to mobile gaming and e-commerce activity) and app publishers.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- 52% of 2025 revenue came from users in the United States. (Form 10-K (FY2025), revenue disaggregation)
Suppliers
App publishers supplying ad inventory, and data center providers.
Named by the company
None named in the 10-K or the company’s press releases.
11
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
AppLovin's 10-K describes a fragmented advertising ecosystem of divisions of large companies and private firms; advertisers typically use several platforms. It competes on technology, expertise, relationships, reach, pricing, and brand.
Competitors named in the 10-K
Peer group the company chose
2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Larger technology companies with an AI or advertising-technology focus, with revenue of 0.25x–4x and market capitalization of 0.33x–3x AppLovin's, and companies it competes with for talent.
- Adobesite ↗
- Cadence Design Systemssite ↗
- CrowdStrikesite ↗
- Datadogsite ↗
- Intuitsite ↗
- Oraclesite ↗
- Palantir Technologiessite ↗
- Palo Alto Networkssite ↗
- Salesforcesite ↗
- ServiceNowsite ↗
- Shopifysite ↗
- Synopsyssite ↗
- The Trade Desksite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
12
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
AppLovin's latest major transaction was a divestiture.
Cash spent on acquisitions, FY2021–FY2023: $2.62B (years not reported separately are excluded)
Jun 2025
Apps business (sold to Tripledot)
$400M in cash plus about 20% of Tripledot's fully diluted equity
Since divestedAppLovin's mobile game studios.
- Stated purpose (company)
- After the sale AppLovin operates as a single advertising segment.
13
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 2,793 | 2,817 | 1,842 | 3,224 | 5,481 |
| Operating income | 150 | -48 | 772 | 1,911 | 4,152 |
| Pretax income | 46 | -205 | 502 | 1,612 | 3,953 |
| Net income (attributable) | 35 | -193 | 357 | 1,580 | 3,334 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 0.9% | -34.6% | 75.1% | 70.0% |
| Operating margincalcoperating income ÷ revenue × 100 | 5.4% | -1.7% | 41.9% | 59.3% | 75.8% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 1.3% | -6.8% | 19.4% | 49.0% | 60.8% |
| Balance sheet ($M) | |||||
| Total assets | 6,164 | 5,848 | 5,359 | 5,869 | 7,260 |
| Total equity | 2,138 | 1,903 | 1,256 | 1,090 | 2,135 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 3,253 | 3,245 | 3,336 | 3,509 | 3,513 |
| Equity ratio | 34.7% | 32.5% | 23.4% | 18.6% | 29.4% |
| ROE | 1.7% | -9.5% | 22.6% | 134.7% | 206.8% |
| Cash flow ($M) | |||||
| Operating CF | 362 | 413 | 1,062 | 2,099 | 3,971 |
| Investing CF | -1,215 | -1,371 | -78 | -107 | 358 |
| Financing CF | 3,110 | -527 | -1,563 | -1,750 | -2,593 |
| Free cash flowcalccash flow from operations − capital expenditures | 360 | 412 | 1,057 | 2,094 | 3,971 |
| Cash and equivalents | 1,521 | 1,080 | 502 | 697 | 2,487 |
| Per share & other | |||||
| EPS ($) | 0.09 | -0.52 | 0.98 | 4.53 | 9.75 |
| BVPS ($) | 5.70 | 5.09 | 3.70 | 3.20 | 6.31 |
| P/E (x) | 1,047.3 | — | 40.7 | 71.5 | 69.1 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 66.9 | — | 13.7 | 49.1 | 53.2 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 16.54 | — | 10.78 | 101.05 | 106.79 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
14
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
64.0%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$4,152M × (1 − 21%) ÷ $5,123M × 100 = 64.0%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
18.09%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $230.4B ÷ ($230.4B + $3.51B) = 98.5%
e.g.Debt weight: $3.51B ÷ ($230.4B + $3.51B) = 1.5%
e.g.WACC: 18.3% × 98.5% + 5.7% × (1 − 21%) × 1.5% = 18.09%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 18.09% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 2.60 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 18.30%
- Cost of debt
- 5.71%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 98% : 2%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 18.09%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 2.60 (price-derived adjusted beta. Raw β 3.39, R² 0.31, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 3.390 + 0.33 = 2.601
termsβ (beta)
Period 2024-04-12–2026-10-07, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 2.6 × 5.5% = 18.3%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
16.4%
Perpetual FCF growth: g = r − FCF ÷ EV = 18.1% − 1.7%
Past FCF growth (FY2021–FY2025)
+82.2%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+18.4%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $3.97B (operating CF − capex); enterprise value $231.42B = market cap $230.4B + debt $3.51B − cash and short-term investments $2.49B; r = WACC of 18.1% using this page’s default assumptions (β 2.60, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$65.09B
FCF $3.97B ÷ (18.1% − 12.0%)
Theoretical ÷ actual enterprise value
0.28x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 16.1% | 17.1% | 18.1% | 19.1% | 20.1% |
|---|---|---|---|---|---|
| 0% | 0.11x | 0.10x | 0.09x | 0.09x | 0.09x |
| 2% | 0.12x | 0.11x | 0.11x | 0.10x | 0.09x |
| 4% | 0.14x | 0.13x | 0.12x | 0.11x | 0.11x |
| 6% | 0.17x | 0.15x | 0.14x | 0.13x | 0.12x |
| 8% | 0.21x | 0.19x | 0.17x | 0.15x | 0.14x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
16
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 3.93x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -9.7%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 105%
Most profit comes from core operations.
- !
Days sales outstanding: 67 → 121 days
Receivables are growing faster than revenue — worth checking for looser collection terms or channel stuffing.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$3,971M ÷ $3,334M = 1.19x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$4,152M ÷ $3,953M × 100 = 105%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$1,819M ÷ $5,481M × 365 = 121 days
17
Strengths & weaknesses
Strengths
1. Very high profitability
Operating income of $4.15B on $5.48B of revenue in 2025 (about 76%).
Evidence: Form 10-K (FY2025); SEC EDGAR XBRL
2. Rapid growth
Revenue grew 75% in 2024 and 70% in 2025; Q2 2026 revenue rose 53%.
Evidence: Form 10-K (FY2025); Q2 2026 earnings release
3. Cash generation with almost no capital spending
Operating cash flow of $3.97B in 2025 against $0.5M of property and equipment purchases.
Evidence: Form 10-K (FY2025), Free Cash Flow table
4. Small team
898 employees at year-end 2025.
Evidence: Form 10-K (FY2025), Human Capital
Weaknesses
1. Narrow product base
Revenue comes from advertising solutions, with Axon Ads Manager making up substantially all of it.
Evidence: Form 10-K (FY2025), Item 1
2. Dependence on the mobile app ecosystem
AppLovin's market is intricately linked to the mobile advertising ecosystem, where large companies such as Meta, Google, Amazon, and Unity also compete or partner.
Evidence: Form 10-K (FY2025), Competition
3. Low equity from buybacks
Shareholders' equity was $2.1B against $3.5B of debt at year-end 2025, after $2.2B of buybacks in 2025.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025)
18
What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
69.1x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
1.7%
(Operating CF − capex) ÷ market cap
1. AI-driven ad growth
Revenue grew 70% in 2025 as net revenue per installation rose 72%.
- What has to hold
- Axon keeps improving and new verticals such as e-commerce scale.
- The other side
- Install volume grew only 3%, so growth leans on pricing per install.
Evidence: Form 10-K (FY2025)
2. Cash returns
Operating cash flow of $3.97B and ongoing buybacks.
- What has to hold
- Margins stay high.
- The other side
- Competition from much larger ad platforms.
Evidence: Form 10-K (FY2025)
Revenue and operating income for FY2023 onward are continuing operations (advertising only) after the 2025 sale of the Apps business; FY2021–FY2022 figures include the Apps business. AppLovin pays no dividend.
19
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
—
$2.49B vs. —
Interest coverage (operating income ÷ interest expense)
20.7x
$4.15B vs. $201M
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -34.6% in FY2023 ($2.82B → $1.84B) | Yes, by FY2024 |
| Operating income | -131.9% in FY2022 ($150M → −$48M) | Yes, by FY2023 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Cash generation
Free cash flow (company definition) of $3.95B in 2025.
Source: Form 10-K (FY2025), MD&A
Debt
About $3.5B of debt at year-end 2025, against $2.5B of cash.
Source: SEC EDGAR XBRL
Concentration in one product
Substantially all revenue comes from Axon Ads Manager.
Source: Form 10-K (FY2025), Item 1
20
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- A fragmented advertising ecosystem that includes divisions of Meta, Google, Amazon, and Unity Software, some of which are also partners and clients.
- Company’s stated mitigation
- Continuous improvement of Axon AI.
- This site’s assessment
- Impact High / Likelihood High
- 2Law & regulation
Securities litigation
- Company disclosure (summarized from the 10-K)
- Putative class actions filed from March 2025 allege violations of the Exchange Act against the company and executives.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Law & regulation
Privacy and data rules
- Company disclosure (summarized from the 10-K)
- Evolving data protection, privacy, and AI laws and regulations could affect how the business uses data.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact High / Likelihood Med
- 4Demand & macro
Advertising demand
- Company disclosure (summarized from the 10-K)
- Revenue depends on advertisers' spending and can be seasonal with mobile gaming and e-commerce demand.
- Company’s stated mitigation
- Expansion into e-commerce and CTV.
- This site’s assessment
- Impact Med / Likelihood Med
21
What to watch going forward
- Revenue growth from web-based e-commerce advertisers.
- Net revenue per installation versus install volume.
- Outcome of the securities class actions.
- Executive transitions (new CTO and Chief Legal Officer in 2026).
- Pace of share repurchases.
22
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 9, 2026 · Financial data fetched: October 8, 2026 13:33 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent AppLovin Corporation’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.