# AppLovin Corporation (APP) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/APP/thesis · /stocks/APP/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/APP/fundamental

## Navigation

- Overview: /stocks/APP
- Financials (this page): /stocks/APP/financials
- Thesis: /stocks/APP/thesis
- Investment Memo: /stocks/APP/memo
- Coverage universe: /stocks