AppLovin Corp (APP) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 79.5%. FCF margin 71.9%. D/E 1.5x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	79.5%	Above industry average
FCF Margin	71.9%	Strong cash generation
Debt/Equity	1.5x	Moderate leverage

ROIC 79.5% — Top 5% of sector peers. FCF margin 71.9% — Top 5%.

Explore AppLovin Corp: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for APP: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: AppLovin Corp earns 79.5% ROIC, Top 5% in Technology

ROIC TTM 79.5%, sector median 4.6%, Top 5%. DuPont: NOPAT margin 65.8% × asset turnover 0.9x. Gross margin 88.4%. Operating margin 77.1%. Source: 10-Q filed 2025-11-05.

Metric	APP	Rating	Context
Return on Invested Capital (ROIC)	79.5%	Excellent	Above sector median of 4.6%
Return on Equity (ROE)	253.8%	Excellent	Efficient use of shareholder equity
Gross Margin	88.4%	Excellent	Strong pricing power
Operating Margin	77.1%	Excellent	Efficient operations

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Cash Flow: AppLovin Corp generates $4.4B FCF at 71.9% margin, positive NaN/8 quarters

FCF TTM $4.4B. FCF margin 71.9%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	APP	Rating	Context
Free Cash Flow Margin	71.9%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$4.4B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: AppLovin Corp at 1.5x leverage

Debt/Equity 1.5x. Total debt $3.5B, cash & investments $2.8B. Source: 10-Q filed 2025-11-05.

Metric	APP	Rating	Context
Debt to Equity	1.5x	Adequate	Moderate leverage
Net Cash Position	$-755.4M	Adequate	Net debt position

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Valuation: AppLovin Corp trades at 31.8x earnings

P/E 31.8x. EV/Sales 20.7x. FCF yield 3.5%. Source: 10-Q filed 2025-11-05.

Metric	APP	Rating	Context
P/E Ratio	31.8x	Adequate	Premium valuation
EV/Sales	20.7x	Warning	Growth premium priced in
FCF Yield	3.5%	Adequate	Lower cash yield

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Capital Allocation: AppLovin Corp returns 1.7% shareholder yield

Total shareholder yield 1.7% (buyback 1.7%). Capital returned $2.2B TTM. Source: 10-Q filed 2025-11-05.

Metric	APP	Rating	Context
Total Shareholder Yield	1.7%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.7%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$2.2B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	79.5%	Top 5%	17.2x above
Free Cash Flow Margin	71.9%	Top 5%	8.4x above
Gross Margin	88.4%	Top 25%	1.7x above
Operating Margin	77.1%	Top 5%	16.1x above
Return on Equity (ROE)	253.8%	Top 5%	49.4x above
P/E Ratio	31.8x	N/A	-

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Financial Scorecard

Metric	APP	Rating	Sector Context
Return on Invested Capital (ROIC)	79.5%	Excellent	Top 5% of sector (median: 4.6%)
Free Cash Flow Margin	71.9%	Excellent	Top 5% of sector (median: 8.5%)
Gross Margin	88.4%	Excellent	Top 25% of sector (median: 51.0%)
Debt to Equity Ratio	148.7%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	31.8x	Adequate	Growth premium
Free Cash Flow Yield	3.5%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is AppLovin Corp's Return on Invested Capital (ROIC)?

AppLovin Corp (APP) has a trailing twelve-month Return on Invested Capital (ROIC) of 79.5%. Sector median 4.6%. Source: 10-Q filed 2025-11-05.

Q: What is AppLovin Corp's Free Cash Flow Margin?

AppLovin Corp (APP) has a free cash flow margin of 71.9%, generating $4.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.

Q: What is AppLovin Corp's P/E ratio and how does it compare to peers?

AppLovin Corp (APP) trades at a P/E ratio of 31.8x, which is above the sector median of N/A. EV/Sales 20.7x. FCF yield 3.5%. Source: 10-Q filed 2025-11-05.

Q: How much debt does AppLovin Corp have?

AppLovin Corp (APP) has a debt-to-equity ratio of 1.5x with total debt of $3.5 billion. Net debt $755.4 million. Source: 10-Q filed 2025-11-05.

Q: What is AppLovin Corp's revenue and earnings growth?

AppLovin Corp (APP) grew revenue by 66.4% year-over-year. EPS +110.4% YoY. Source: 10-Q filed 2025-11-05.

Q: Is AppLovin Corp buying back stock?

AppLovin Corp (APP) repurchased $2.2 billion of stock over the trailing twelve months. This represents a buyback yield of 1.7%. Source: 10-Q filed 2025-11-05.

Q: How does AppLovin Corp compare to competitors in Technology?

Compared to other companies in Technology, AppLovin Corp (APP) shows: ROIC 79.5%, sector median 4.6% (Top 5%). FCF margin 71.9%, sector median 8.5% (Top 5%). Gross margin 88.4%, 37.3pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with AppLovin Corp?

No quantitative warning flags fired for AppLovin Corp (APP) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-05.

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Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.