APP

AppLovin Corp

Technology • CIK: 0001751008

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Market Cap
$125.83B
P/E (TTM)
31.8x
Rev Growth (TTM)
+66.4%
Net Margin (TTM)
64.3%
FCF Yield (TTM)
3.5%
FCF Margin (TTM)
71.9%

LATEST EARNINGS

Q4 2025
3 months ago
View source
Revenue
$1.66B
+66.0%
Net Income
$1.10B
+84.0%
EPS
$3.24
+87.3%
Gross
88.9% +4.2%
Operating
76.9% +14.0%
Net
66.5% +6.5%
  • Revenue grew 66% year-over-year to $1.66 billion in Q4 and 70% for the full year to $5.48 billion.
  • Net income increased 84% year-over-year to $1.10 billion in Q4 and 111% for the full year to $3.33 billion.
  • Adjusted EBITDA grew 82% year-over-year to $1.40 billion in Q4 and 87% for the full year to $4.51 billion.
  • Adjusted EBITDA margin expanded to 84% in Q4 and 82% for the full year, up from 77% and 75% respectively.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$4.4B
Q1 '26
$1.3B-2%
Q4 '25
$1.3B+25%
FCF Margin
TTM71.9%
Q1 '2670.1%-12%
Sector: 8.5%Top 10%
OCF Margin71.9%
OCF/NI1.12x
CapEx Coverage
FCF Yield3.5%
FCF Growth (2Y)+82%
Cash Conversion Cycle
-213 days
DSO: 100+DIO: 0DPO: 313

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM1.7%
Div Yield0.0%
+
Buyback (TTM)1.7%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$4.4B
Stock Repurchases (TTM)$2.2B
Capital Return / FCF49.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
79.5%
Volatile
+0.3% YoY+49.0%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
65.8%
8Q: 65.9%
Asset Turnover
0.94x
8Q: 0.83x
Leverage (1+D/E)
2.49x
D/E: 1.49x
DuPont: 153.5%79.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
47.32x
8Q:31.68x
+4567.6%
Invested Cap Turn
1.36x
8Q:1.26x
+73.3%
Depreciation Rate Trend
⚠ Declining -314.2%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$6.2B
$1.8B11.1%
$1.7B18.0%
$1.4B11.6%
$1.3B8.6%
$1.2B16.0%
$999.5M19.7%
$835.2M17.5%
$711.0M
Operating Income
$4.8B
$1.4B12.9%
$1.3B18.2%
$1.1B12.7%
$957.7M14.0%
$840.0M33.7%
$628.3M17.6%
$534.3M39.0%
$384.4M
Net Income
$4.0B
$1.2B9.4%
$1.1B31.9%
$835.5M2.0%
$819.3M42.2%
$576.3M3.7%
$598.7M37.8%
$434.3M40.1%
$309.9M
Operating Cash Flow
$4.4B
$1.3B1.7%
$1.3B24.7%
$1.1B36.4%
$772.2M7.2%
$831.7M18.6%
$701.0M27.3%
$550.7M21.2%
$454.5M
Free Cash Flow
$4.4B
$1.3B1.7%
$1.3B24.7%
$1.1B36.4%
$772.2M7.2%
$831.7M19.9%
$693.7M26.7%
$547.5M20.5%
$454.5M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
31.8x
Volatile
8Q: 150.3x+7793%
Valuation Lenses
Earnings
31.8x
vs sector
Cash Flow
28.8x
EV/FCF vs
Growth-Adj
0.3xPEG
Undervalued for growth
Quality-Adj
0.4P/E per %ROIC
ROIC: 79.5%
Shareholder Returns
Dividend
Buyback
1.7%
Total Yield
1.7%
Market Cap$125.83B
EV$127.62B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
73/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
2.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
79.5%
8Q:
+49.0%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 65.8%
Asset Turnover: 0.94x

Earnings Quality

Cash Conversion

1.12x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin88.4%

Capital Efficiency

Invested Capital Turnover1.36x

Working Capital

Cash Conversion Cycle-213 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
66.4%
OpInc Growth YoY
71.4%
EPS Growth YoY
110.4%
FCF 3Y CAGR
82.2%

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
88.4%
Operating
77.1%
Top 25% in sector
Net
64.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+7.6 pts
FCF: 71.9% | Net: 64.3%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
Net Debt: $755.35M
Interest Coverage
Leverage Metrics
Debt-to-Equity
1.49x
Balance sheet risk & solvency analysis