What are the main concerns in AppLovin Corp's latest SEC filing?

The analysis identified 5 key concerns: Goodwill increased by $83.2M due to foreign currency translation, which is an unusual driver for goodwill changes.; Significant multi-year cloud commitment of $1.3 billion with limited flexibility.; Full impairment of $50 million investment in Humans, Inc. where a board member had an executive role..

What are the top risks for AppLovin Corp (APP)?

The top risks identified in the 10-Q filing are: Cybersecurity and Data Protection Breaches, Platform Provider Policy Changes (e.g., Apple/Google), Regulatory and Legal Environment Changes. The company faces a high-risk profile primarily driven by significant cybersecurity threats, evolving regulatory landscapes, and dependence on third-party platform policies. While competitive and capital structure risks are present, the core operational and legal exposures demand close monitoring.

APP - Comprehensive Filing Intelligence

Q3 2025•10-Q•Filed Nov 5, 2025

5.0/10

Filing Health:CAUTION

Notable concerns that warrant closer review

Executive Summary

The company is experiencing significant revenue and profitability growth, driven by its advertising solutions and a focus on advertiser success.. Strong cash flow generation continues, with substantial Free Cash Flow and proactive capital allocation including significant share repurchases.. Significant multi-year cloud commitment of $1.3 billion with limited flexibility.. Revenue increased 68% year-over-year to $1.4 billion for the three months ended September 30, 2025.

Top Concerns

!Goodwill increased by $83.2M due to foreign currency translation, which is an unusual driver for goodwill changes.
!Significant multi-year cloud commitment of $1.3 billion with limited flexibility.
!Full impairment of $50 million investment in Humans, Inc. where a board member had an executive role.
!Cybersecurity and Data Protection Breaches (high)
!Platform Provider Policy Changes (e.g., Apple/Google) (medium)

Top Positives

+The company is experiencing significant revenue and profitability growth, driven by its advertising solutions and a focus on advertiser success.
+Strong cash flow generation continues, with substantial Free Cash Flow and proactive capital allocation including significant share repurchases.
+Investments are being made in AI and expanding into new verticals, indicating a strategic focus on future growth beyond the core gaming market.

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

8.0/10

Management tone is confidently optimistic.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is moderate with $1.3 billion in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows cybersecurity and data protection breaches as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

5.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.