AppLovin CorporationAPP
NasdaqGS•Communication Services•Advertising Agencies
AppLovin Corporation provides end-to-end artificial intelligence-powered advertising solutions for businesses in the United States and internationally. It operates through two segments, Advertising and Apps. The company offers Axon Ads Manager, a suite of marketing solutions that enables developers to automate, optimize, and manage marketing efforts; MAX, an in-app bidding technology that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform; and Wurl, a connected TV platform, which distributes streaming video for content companies, provides advertising and publishing solutions. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, and indie studio developers. The company was incorporated in 2011 and is headquartered in Palo Alto, California.
as of March 2026
Are revenues and earnings expanding?
$5.84B in TTM revenue grew 13.7% YoY, reaching $1.84B last quarter. TTM EBITDA of $5.08B on operating income of $1.44B shows growth is flowing through. Net income of $3.96B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 78.2% is up 33.4% YoY — cost efficiency is improving. Net margin at 65.4% and gross margin of 88.9%. ROE of 167.7% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 40.8x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 27.7x and P/B of 68.4x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $7.71B in assets and $3.51B in long-term debt, the D/E of 1.5 reflects moderate leverage — debt is manageable but worth monitoring.
Is the business self-funding?
FCF of $1.29B on $1.29B in operating cash flow. The FCF / Net Income ratio of 0.3x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $2.76B provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~63.7%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 178.4% suggests a durable competitive advantage and efficient capital allocation.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~85.0% — no sign of cost or pricing stress.
FCF covers net income by 1.2x on average — earnings are well-supported by cash generation.
D/E ratio is 1.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (6 of 7 quarters up), with ~47.6% growth over the period. Strong demand durability.