AppLovin Corporation

APP
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.8B
Q1 2026 · +59% YoY · Beat consensus by 4%
TTM ROIC
116%
FY2025 · NOPAT / Invested Capital (including goodwill/intangibles); NOPAT = Adj. EBITDA less ~20% taxes · WACC ~12.5% · Moat spread +103.5pp

Financial Snapshot

ticker: APP step: 04 generated: 2026-05-13 source: quick-research

AppLovin Corporation (APP) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $2.82B $3.28B $4.71B +43%
Gross Margin ~55% ~68% ~75% expanding rapidly
GAAP Operating Margin ~5% ~8% ~30%
Non-GAAP (Software Adj. EBITDA) ~50% ~55% ~65%
GAAP Net Income ~$0.04B ~$0.36B $1.58B +343%

FY2025 Advertising segment: Q3 2025 revenue $1.405B (+68% YoY); Adj. EBITDA $1.158B (82% margin); net income margin ~59%. Q4 2025 revenue grew 66% YoY, crushing estimates. Full-year FY2025 total revenue $5.481B (+16%; depressed by gaming divestiture). Advertising-only revenue was growing ~65–70% YoY in H2 2025. FCF projected to nearly double in FY2025.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$2.3B
Free Cash Flow $2.1B (~45% FCF margin)
Capital Expenditures ~$200M
Cash & Equivalents ~$2.0B
Total Debt ~$3.5B (leveraged balance sheet from prior acquisitions)

FCF power is exceptional: $2.1B on $4.71B revenue = 45% FCF margin. Aggressively returning capital: $2.5B+ in share buybacks in FY2025 alone (~65% of annual FCF). Debt from historical acquisitions being paid down as FCF scales. Gaming divestiture adds $400M cash + 20% equity stake in Tripledot. Net leverage declining rapidly.

Key Ratios (approximate)

  • P/E: ~40–60x (FY2026E) | EV/Sales: ~18–22x | FCF Yield: ~1.5–2%
  • Revenue Growth (Advertising TTM): ~65–70% | Adj. EBITDA Margin (Advertising): ~82%

Growth Profile

AppLovin's AXON 2.0 launch in mid-2023 triggered one of the most dramatic earnings inflections in tech: net income grew 343% in FY2024, gross margins expanded from 55% to 75%, and the advertising segment now generates 82% adjusted EBITDA margins. The stock rose 758% in 2024. FY2025 continues the inflection with advertising revenue growing 65–70% while the company returns $2.5B+ to shareholders via buybacks. Earnings projected to nearly double in FY2025 and jump another 51% in FY2026 as e-commerce and CTV expansion scales.

Forward Estimates

  • FY2026: Advertising revenue ~$6.5–8B+; e-commerce and CTV contributing incrementally
  • Earnings growth: ~51% YoY (FY2026E) on top of near-doubling in FY2025
  • FCF: $4B+ in FY2025, $6B+ in FY2026 — extraordinary absolute cash generation
  • Axon Ads Manager (global launch 2026): self-service opens new SME advertiser market
  • Share buybacks: $2.5B in FY2025; continued in FY2026 reducing share count

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $APP.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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AppLovin Corporation (APP) — Financial Analysis | Margin of Insight