APP
AppLovin Corp
Technology • CIK: 0001751008
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Market Cap
$228.28B
P/E (TTM)
68.4x
Rev Growth (TTM)
+61.1%
Net Margin (TTM)
57.4%
FCF Yield (TTM)
1.7%
FCF Margin (TTM)
68.4%
Filing Intelligence
5.0/10
10-K filed Feb 19, 2026 • FY 2025
Executive Summary
The company divested its Apps business, streamlining operations into a single reporting segment focused on its advertising solutions.. The company has a significant cloud commitment of $1.3 billion...
Key Concerns
- ●Significant adjustments in non-GAAP measures (Adjusted EBITDA)
- ●The company has a significant cloud commitment of $1.3 billion over three years.
- ●There are $702.8 million in non-cancelable purchase obligations, primarily for cloud services.
Key Strengths
- ●Revenue experienced substantial growth of 70% in 2025, driven by strong performance in the Axon Ads Manager platform, indicating effective...
- ●Operating margins improved significantly due to revenue growth outpacing expense increases, although G&A expenses rose notably.
- ●Operating cash flow generation strengthened considerably, reflecting improved collections and operational efficiency, despite higher tax...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$4.0B
Q4 '25
$1.3B+25%
Q3 '25
$1.1B+36%
FCF Margin
TTM68.4%
Q4 '2579.2%+6%
Sector: 9.1%Top 10%
OCF Margin68.4%
OCF/NI1.19x
CapEx Coverage–
FCF Yield1.7%
FCF Growth (2Y)+113%
Cash Conversion Cycle
-170 days
DSO: 100+DIO: 0−DPO: 270
Capital Allocation & Returns
Growth Focused
Total Shareholder YieldTTM
TTM1.0%
Div Yield0.0%
+Buyback (TTM)1.0%
Prioritizing reinvestment over distributions
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$4.0B
Stock Repurchases (TTM)$2.2B
Capital Return / FCF55.2%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
72.5%
Volatile
+0.3% YoY+56.7%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
59.6%
8Q: 61.0%
Asset Turnover
0.95x
8Q: 0.83x
Leverage (1+D/E)
2.65x
D/E: 1.65x
DuPont: 149.0% ≈ 72.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
41.21x
8Q:29.51x
+3226.7%
Invested Cap Turn
1.38x
8Q:1.18x
+61.5%
Depreciation Rate Trend
⚠ Declining -391.8%
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $5.8B | $1.7B↑18.0% | $1.4B↑11.6% | $1.3B↓15.2% | $1.5B↑48.5% | $999.5M↑19.7% | $835.2M↑17.5% | $711.0M↓32.8% | $1.1B |
Operating Income | $4.0B | $1.3B↑18.2% | $1.1B↑12.7% | $957.7M↑44.3% | $663.5M↑5.6% | $628.3M↑17.6% | $534.3M↑39.0% | $384.4M↑13.2% | $339.6M |
Net Income | $3.3B | $1.1B↑31.9% | $835.5M↑2.0% | $819.3M↑42.2% | $576.3M↓3.7% | $598.7M↑37.8% | $434.3M↑40.1% | $309.9M↑32.0% | $234.7M |
Operating Cash Flow | $4.0B | $1.3B↑24.7% | $1.1B↑36.4% | $772.2M↓7.2% | $831.7M↑18.6% | $701.0M↑27.3% | $550.7M↑21.2% | $454.5M↑15.7% | $392.8M |
Free Cash Flow | $4.0B | $1.3B↑24.7% | $1.1B↑36.4% | $772.2M↓7.2% | $831.7M↑19.9% | $693.7M↑26.7% | $547.5M↑20.5% | $454.5M↑15.7% | $392.8M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
68.4x
Volatile
8Q: 150.3x+15502%
Valuation Lenses
Earnings
68.4x
vs – sector
Cash Flow
58.1x
EV/FCF vs –
Growth-Adj
0.6xPEG
Undervalued for growth
Quality-Adj
0.9P/E per %ROIC
ROIC: 72.5%
Shareholder Returns
Dividend
–
Buyback
1.0%
Total Yield
1.0%
Market Cap$228.28B
EV$230.58B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
70/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
2.8%
8Q:–
Return on Invested Capital (ROIC)Top 25%
72.5%
8Q:–
+56.7%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 59.6%
Asset Turnover: 0.95x
Earnings Quality
Cash Conversion
1.19x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin86.5%
Capital Efficiency
Invested Capital Turnover1.38x
Working Capital
Cash Conversion Cycle-170 days
Growth Quality & Momentum
Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
61.1%
OpInc Growth YoY
103.0%
EPS Growth YoY
115.2%
FCF 3Y CAGR
112.8%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
✓Sustainability Index: 8.5/10 - Highly sustainable growth
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
86.5%
Operating
68.5%
Top 25% in sector
Net
57.4%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+11.0 pts
FCF: 68.4% | Net: 57.4%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Leveraged
Net Debt / EBITDA
–Net Debt: $1.03B
Interest Coverage
–
Balance sheet risk & solvency analysis