A Business at a Glance
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AppLovin Corp
APP
$134.0B
Mkt Cap
$391.98
-1.72%
AppLovin Corp (APP) has a current P/E ratio of 40.2, compared to its historical median P/E of 73.3. The stock is currently considered Cheap based on its historical valuation range.
AppLovin Corp (APP) has a 5-year average return on invested capital (ROIC) of 33.8%. This indicates strong capital allocation and a potential competitive advantage.
AppLovin Corp (APP) has a market capitalization of $131.8B. It is classified as a large-cap stock.
AppLovin Corp (APP) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.65%.
Based on historical P/E analysis, AppLovin Corp (APP) appears cheap. The current P/E of 40.2 is 45% below its historical median of 73.3. The estimated fair value CAGR (P/E method) is 220.3%.
AppLovin Corp (APP) operates in the Services-Computer Programming, Data Processing, Etc. industry, within the Technology sector.
AppLovin Corp (APP) reported annual revenue of $5.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
AppLovin is an AI-powered advertising platform that connects advertisers and publishers across mobile gaming, e-commerce, and connected TV ecosystems. The company generates revenue from advertising solutions through a performance-based model where advertisers pay dynamically based on their return-on-advertising-spend targets rather than fixed per-impression pricing, ensuring advertiser success directly drives AppLovin's growth. The core product, Axon Ads Manager, uses proprietary AI algorithms to match advertiser demand with publisher supply at scale and microsecond speeds; complementary offerings include MAX (in-app bidding for publisher monetization), Adjust (measurement and analytics), and Wurl (connected TV distribution and advertising). AppLovin's scaled distribution and access to user engagement data create a durable competitive moat that continuously improves Axon AI's recommendation engine, enhancing platform efficiency and effectiveness. The business serves a globally diverse customer base ranging from large enterprises to small independent businesses across gaming, e-commerce, and content industries, with revenue substantially derived from Axon Ads Manager and characterized by high margins and strong free cash flow generation.
【Accelerating platform expansion】 Management expects sustained hyper-growth driven by multiple tailwinds: the ad-supported gaming ecosystem growing multiples faster than in-app purchasing, new high-quality games monetizing with ads, and rapid expansion of the consumer (e-commerce) vertical which is growing even faster than gaming. The company plans to open Axon Ads Manager globally in the first half of 2026 following a referral-based soft launch, with paid marketing to recruit new advertisers expected to drive predictable, compounding growth. Management anticipates margin expansion will continue as the business scales, with no expectation of margin compression despite increased investment in compute capacity and advertiser acquisition. The platform's ability to serve customers across multiple targeting levels—discovery, prospecting, and universal campaigns—is unlocking greater aggregate budgets from existing customers, while the introduction of generative AI tools for video ad creation is expected to increase the percentage of new customers going live on the platform.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.8B | 5.5B | 3.2B | 1.8B | 2.8B | 2.8B |
| Net Income | 4.0B | 3.3B | 1.6B | 355M | -193M | 32M |
| EPS | $11.73 | $9.75 | $4.53 | $0.98 | $-0.52 | $0.09 |
| Free Cash Flow | 0 | 3.9B | 2.1B | 1.1B | 412M | 360M |
| ROIC | 134.2% | 101.4% | 46.9% | 17.2% | -1.2% | 4.5% |
| Gross Margin | - | 87.9% | 83.9% | 80.6% | 55.4% | 64.6% |
| Debt/Equity | 1.49 | 1.67 | 3.26 | 2.70 | 1.74 | 1.56 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 4.9B | 4.2B | 1.9B | 772M | -48M | 150M |
| Operating Margin | 84.4% | 75.8% | 59.3% | 41.9% | -1.7% | 5.4% |
| ROE | 167.7% | 206.7% | 134.4% | 22.5% | -9.5% | 3.2% |
| Shares Outstanding | 336M | 342M | 348M | 362M | 371M | 352M |
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | |||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 994M | 1.5B | 2.8B | 2.8B | 1.8B | 3.2B | 5.5B | 5.8B |
| Gross Margin | 75.7% | 61.7% | 64.6% | 55.4% | 80.6% | 83.9% | 87.9% | N/A |
| R&D | 45M | 181M | 366M | 508M | 334M | 375M | 227M | 198M |
| SG&A | 32M | 66M | 159M | 182M | 151M | 165M | 234M | 223M |
| EBIT | 194M | -62M | 150M | -48M | 772M | 1.9B | 4.2B | 4.9B |
| Op. Margin | 19.6% | -4.3% | 5.4% | -1.7% | 41.9% | 59.3% | 75.8% | 84.4% |
| Net Income | 76M | -125M | 32M | -193M | 355M | 1.6B | 3.3B | 4.0B |
| Net Margin | 7.7% | -8.6% | 1.1% | -6.8% | 19.3% | 48.9% | 60.8% | 67.9% |
| Non-Recurring | 0 | 0 | 0 | 11M | 2.3M | 23M | 189M | 189M |
| Returns on Capital | ||||||||
| ROIC | N/M | -21.4% | 4.5% | -1.2% | 17.2% | 46.9% | 101.4% | 134.2% |
| ROE | -24.1% | 60.3% | 3.2% | -9.5% | 22.5% | 134.4% | 206.7% | 167.7% |
| ROA | 92.7% | -11.2% | 0.8% | -3.2% | 6.3% | 28.1% | 50.8% | 51.4% |
| Cash Flow | ||||||||
| Op. Cash Flow | 198M | 223M | 362M | 413M | 1.1B | 2.1B | 4.0B | 4.4B |
| Free Cash Flow | 195M | 220M | 360M | 412M | 1.1B | 2.1B | 3.9B | 0 |
| Owner Earnings | 95M | -94M | -202M | -326M | 209M | 1.3B | 3.6B | 4.0B |
| CapEx | 3.4M | 3.2M | 1.4M | 662K | 4.2M | 4.8M | 28M | 0 |
| Maint. CapEx | 93M | 255M | 431M | 547M | 489M | 449M | 195M | 149M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 93M | 255M | 431M | 547M | 489M | 449M | 195M | 149M |
| CapEx/OCF | N/A | N/A | 0.4% | 0.2% | 0.4% | N/A | N/A | 0.0% |
| Capital Allocation | ||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 11K | 1.8M | 0 | 339M | 1.2B | 981M | 2.2B | 2.2B |
| Buyback Yield | N/A | N/A | N/A | 9.7% | 7.8% | 0.8% | 0.9% | 1.6% |
| Stock-Based Comp | 10M | 62M | 133M | 192M | 363M | 369M | 210M | 233M |
| Debt Repayment | 11M | 64M | 720M | 26M | 498M | 4.2B | 200M | 200M |
| Balance Sheet | ||||||||
| Net Debt | N/A | 1.4B | 1.8B | 2.2B | 2.9B | 2.9B | 1.1B | 755M |
| Cash & Equiv. | 396M | 317M | 1.5B | 1.1B | 502M | 697M | 2.5B | 2.8B |
| Long-Term Debt | N/A | 1.6B | 3.2B | 3.2B | 2.9B | 3.5B | 3.5B | 3.5B |
| Debt/Equity | -0.02 | -10.70 | 1.56 | 1.74 | 2.70 | 3.26 | 1.67 | 1.49 |
| Interest Coverage | 2.6 | -0.8 | 1.5 | -0.3 | 2.7 | 6.2 | 20.7 | 1056.2 |
| Equity | -257M | -159M | 2.1B | 1.9B | 1.3B | 1.1B | 2.1B | 2.4B |
| Total Assets | 82M | 2.2B | 6.2B | 5.8B | 5.4B | 5.9B | 7.3B | 7.7B |
| Total Liabilities | 5.7M | 2.3B | 4.0B | 3.9B | 4.1B | 4.8B | 5.1B | 5.3B |
| Intangibles | N/A | 1.1B | 1.7B | 1.7B | 1.3B | 473M | 397M | 369M |
| Retained Earnings | N/A | -1.0B | -977M | -1.2B | -813M | 599M | 1.7B | 1.9B |
| Working Capital | N/A | 65M | 2.6B | 1.4B | 672M | 1.3B | 3.1B | 3.4B |
| Current Assets | N/A | 663M | 3.2B | 1.9B | 1.6B | 2.3B | 4.4B | 4.8B |
| Current Liabilities | N/A | 598M | 640M | 579M | 944M | 1.1B | 1.3B | 1.5B |
| Per Share Data | ||||||||
| EPS | 0.36 | -0.58 | 0.09 | -0.52 | 0.98 | 4.53 | 9.75 | 11.73 |
| Owner EPS | 0.45 | -0.44 | -0.57 | -0.88 | 0.58 | 3.68 | 10.43 | 12.04 |
| Book Value | -1.21 | -0.73 | 6.07 | 5.13 | 3.47 | 3.13 | 6.24 | 7.03 |
| Cash Flow/Share | 0.94 | 1.03 | 1.03 | 1.11 | 2.93 | 6.03 | 11.62 | 12.22 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 212.2M | 215.8M | 352.3M | 370.7M | 362.2M | 348.1M | 341.9M | 336.3M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | 41.6 | 74.0 | 73.3 | 33.4 |
| P/FCF | N/A | N/A | 91.1 | 8.5 | 14.0 | 55.7 | 61.9 | N/A |
| EV/EBIT | N/A | N/A | 230.4 | N/A | 22.8 | 62.3 | 58.5 | 26.9 |
| Price/Book | N/A | N/A | 15.4 | 1.8 | 11.8 | 107.3 | 114.4 | 55.8 |
| Price/Sales | N/A | N/A | 9.7 | 5.0 | 5.3 | 12.7 | 27.4 | 22.6 |
| FCF Yield | N/A | N/A | 1.1% | 11.8% | 7.2% | 1.8% | 1.6% | N/A |
| Market Cap | N/A | N/A | 32.8B | 3.5B | 14.8B | 116.9B | 244.2B | 131.8B |
| Avg. Price | N/A | N/A | 76.88 | 38.05 | 26.94 | 117.64 | 438.59 | 391.98 |
| Year-End Price | N/A | N/A | 93.19 | 9.40 | 40.76 | 335.17 | 714.23 | 391.98 |
AppLovin Corp passes 7 of 9 quality checks, indicating strong fundamentals.
AppLovin Corp trades at 40.2x trailing earnings, compared to its 15-year median P/E of 73.3x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 33.8x vs a median of 55.7x. The company's 5-year average ROIC is 33.8% with a gross margin of 74.5%. Total shareholder yield (buybacks) is 1.6%. At current prices, the estimated annualized return to fair value is +42.6%.
AppLovin Corp (APP) has a net profit margin of 60.8%. This is a strong margin indicating high profitability.
AppLovin Corp (APP) generated $3.9 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AppLovin Corp (APP) has a debt-to-equity ratio of 1.67. This indicates higher leverage, which may increase financial risk.
AppLovin Corp (APP) reported earnings per share (EPS) of $9.75 in its most recent fiscal year.
AppLovin Corp (APP) has a return on equity (ROE) of 206.7%. This indicates the company generates strong returns for shareholders.
AppLovin Corp (APP) has a 5-year average gross margin of 74.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 7 years of financial data for AppLovin Corp (APP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AppLovin Corp (APP) has a book value per share of $6.24, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects sustained hyper-growth driven by multiple tailwinds: the ad-supported gaming ecosystem growing multiples faster than in-app purchasing, new high-quality games monetizing with ads, and rapid expansion of the consumer (e-commerce) vertical which is growing even faster than gaming. The company plans to open Axon Ads Manager globally in the first half of 2026 following a referral-based soft launch, with paid marketing to recruit new advertisers expected to drive predictable, compounding growth. Management anticipates margin expansion will continue as the business scales, with no expectation of margin compression despite increased investment in compute capacity and advertiser acquisition. The platform's ability to serve customers across multiple targeting levels—discovery, prospecting, and universal campaigns—is unlocking greater aggregate budgets from existing customers, while the introduction of generative AI tools for video ad creation is expected to increase the percentage of new customers going live on the platform.