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.
Applovin Corporation (APP) reported trailing twelve months revenue of $5.84B as of March 2026, a 13.7% increase year-over-year. Quarterly revenue reached $1.84B, reflecting continued top-line momentum.
Applovin Corporation generated $3.96B in TTM net income, with quarterly EBITDA of $1.47B. The operating margin expanded from 44.7% to 78.2%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (78.2%) and net margin (65.4%) indicates moderate non-operating costs. Net margin has improved from 38.8% a year ago, signaling stronger bottom-line efficiency.
APP trades at a P/E of 31.7x (a premium multiple) and a P/S of 21.5x. The price-to-book ratio of 53.1x indicates a significant premium over book value.
The company generated $1.29B in free cash flow over the trailing twelve months, a 55.3% increase year-over-year, indicating cash generation ability. The balance sheet shows $7.71B in total assets with $3.51B in long-term debt against $2.36B in stockholders equity for a debt-to-equity ratio of 1.5. Data based on the most recent quarterly reports.
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.
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.
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.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation