AppLovin (APP)
Information Technology · $110B market cap · SEC CIK 0001751008
fundamentals score out of 100
Next reports on Nov 3, 2026, after the close, with analysts expecting $4.08 in earnings per share.
The case for APP
- Revenue up 60.6% on the year.
- Earns 193% on shareholder equity.
- 65% of revenue drops through to net profit.
- Earnings per share up 84.7%.
- A PEG of 0.29: a P/E of 24.9× is low for EPS growing 85%.
- Has compounded revenue at 30.4% a year over five years.
The case against
- Priced at 16.1× sales, which leaves no room for a stumble.
- Down 49.2% over the past year.
- Swings harder than the market (beta 2.50).
- Priced at 55× book value. Very little hard asset backing here.
- Near the bottom of its 52-week range, 56% below the high. Falling prices usually have a reason; find it first.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 34 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 93 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 96 |
| Momentumhow the price has behaved lately | 6 |
| Stabilityhow violently it moves, what it owes and what it pays you | 33 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 24.9× |
|---|---|
| Price / book | 54.72× |
| Price / sales | 16.1× |
| Revenue growth (YoY) | +60.6% |
| EPS growth (YoY) | +84.7% |
| Gross margin | 88% |
| Operating margin | 77% |
| Net margin | 65% |
| Return on equity | 193% |
| Debt / equity | 1.11× |
| Current ratio | 4.30 |
| Dividend yield | none |
| Beta | 2.50 |
| 52-week range | $297.50 – $745.61 |
| Position in that range | 7% of the way up |
| 3-month return | -29.7% |
| 1-year return | -49.2% |
Five years of financials, as filed
Pulled from AppLovin's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $5.5B | $3.2B | $1.8B | $2.8B | $2.8B |
| Operating income | $4.2B | $1.9B | $772M | -$47.8M | $150M |
| Net income | $3.3B | $1.6B | $357M | -$193M | $35.0M |
| Operating cash flow | $4.0B | $2.1B | $1.1B | $413M | $362M |
| Capital expenditure | — | $4.8M | $4.2M | $662K | $1.4M |
| Total assets | $7.3B | $5.9B | $5.4B | $5.8B | $6.2B |
| Total liabilities | $5.1B | $4.8B | $4.1B | $3.9B | $4.0B |
| Shareholder equity | $2.1B | $1.1B | $1.3B | $1.9B | $2.1B |
| Cash | $2.5B | $697M | $502M | $1.1B | $1.5B |
| Long-term debt | $3.5B | $3.5B | $2.9B | $3.2B | $3.2B |
| Free cash flow | — | $2.1B | $1.1B | $412M | $360M |
| Operating margin | 75.8% | 59.3% | 41.9% | -1.7% | 5.4% |
| Net margin | 60.8% | 49.0% | 19.4% | -6.9% | 1.3% |
| Diluted shares | 342M | 348M | 363M | 372M | 343M |
Share count is essentially flat over 4 years.
What AppLovin says it does
Our mission is to create meaningful connections between companies and their ideal customers. We provide end-to-end artificial intelligence-powered ("AI") advertising solutions for businesses to reach, monetize and grow their global audience. Our scaled business model is intricately linked to the advertising ecosystem, providing a durable competitive advantage. We generate revenue when our advertisers achieve their return on advertising spend targets with our advertising solutions, ensuring that their success directly fuels our growth. AppLovin is critical to the success of advertisers and publishers seeking to solve marketing and monetization challenges. Through our technologies and scaled distribution, advertisers are able to better place content so that it is discovered by the right audience, manage, optimize, and analyze their marketing investments, and improve the monetization of their content, and publishers are able to better…
Risk factors APP lists in its 10-K
- Business, Operational, and Industry Factors
- Ownership of our Class A common stock and Governance
- Risks Related to Our Business, Operations and Industry
- Our results of operations are likely to fluctuate from period-to-period, which could cause the market price of our Class A common stock to decline
- Security breaches, improper access to or disclosure of our data or client data, other hacking and phishing attacks on our systems, or other cyber incidents could harm our reputation and adversely affect our business
- Our company culture has contributed to our success and if we cannot maintain this culture as we grow, our business could be harmed
- The failure to attract new clients, the loss of clients, or a reduction in spending by these clients could adversely affect our business, financial condition, and results of operations
- The advertising ecosystem is intensely competitive. If clients prefer our competitors’ products or services over our own, our business, financial condition, and results of operations could be adversely affected
- Our future growth may involve expansion into new business opportunities, and any efforts to do so that are unsuccessful or are not cost-effective could adversely affect our business, financial condition, and results of operations
- Our business is subject to general macroeconomic conditions and a variety of other factors beyond our control that could adversely affect our revenue and results of operations
- Our international operations are subject to increased challenges and risks
- We plan to continue to consider opportunities to expand and diversify our operations through strategic acquisitions and partnerships. We face a number of risks related to strategic transactions we may pursue
- We face risks related to our strategic transactions, which may not achieve our strategic objectives, may disrupt our operations or result in unexpected liabilities or expenses
- We generally do not have long-term agreements with our clients