olivLaw · US equity research
AppLovin Corporation APP
Services-Computer Programming, Data Processing, Etc. · SIC 7370 · Vertical: Services-Computer Programming, Data Processing, Etc. (SIC 7370)
AppLovin Corporation is an AI-powered advertising platform offering advertisers and publishers solutions for user acquisition and monetization. Revenue reached 5480.717 million USD in fiscal 2025 and 1923.686 million USD in the second quarter of 2026, up 53% year over year. The company sold its Apps business in June 2025 and now operates a single reportable segment.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, AppLovin Corporation (APP) stock was 271.75 USD (+10.69% on the day), with market capitalisation 90.0 bn USD, P/E 18.3 on diluted EPS of 14.86 USD over the last 12 months, beta 2.35, 52-week range 228.50–733.60 USD. Latest reported quarter (Q3 2026): revenue of 2.2 bn USD (+55.5% YoY), net income of 1.4 bn USD (+72.2% YoY), diluted EPS 4.30 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 50.8
- neutral
- Bollinger (20, 2)
- 234.85 – 290.65
- in the upper half of the band · %B 0.66 · band width 21.2%
- SMA 50 / 200
- 290.82 / 410.84
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -12.67 / -13.66
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −3.6% | −1.1% | −2.5 pp | — |
| 3 months | −35.0% | −0.5% | −34.5 pp | — |
| 6 months | −42.0% | +4.4% | −46.4 pp | — |
| Year to date | −59.7% | +12.3% | −72.0 pp | — |
| 1 year | −55.4% | +13.5% | −68.9 pp | −14.0% |
| 3 years | +592.0% | +76.4% | +515.6 pp | +0.8% |
| 5 years | +176.0% | +63.7% | +112.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 999.5 m | 1.2 bn | 1.3 bn | 1.4 bn | 1.7 bn | 1.8 bn | 1.9 bn | 2.2 bn |
| Cost of revenue | 153.4 m | 151.7 m | 155.1 m | 174.9 m | 183.5 m | 203.6 m | 225.8 m | 240.8 m |
| Research & development | 105.9 m | 56.4 m | 44.0 m | 43.9 m | 82.2 m | 94.1 m | 99.9 m | 101.8 m |
| Operating income | 628.3 m | 840.0 m | 957.7 m | 1.1 bn | 1.3 bn | 1.4 bn | 1.5 bn | 1.7 bn |
| Depreciation & amortisation | 127.8 m | 79.9 m | 47.1 m ≈ | 35.1 m ≈ | 32.7 m | 33.7 m | 32.6 m ≈ | 34.2 m ≈ |
| Interest expense | 84.7 m | 52.9 m | 51.4 m | 51.4 m | 51.3 m | 51.2 m | 51.2 m | 51.1 m |
| Pre-tax income | 534.7 m | 794.6 m | 884.0 m | 1.0 bn | 1.3 bn | 1.4 bn | 1.5 bn | 1.7 bn |
| Income tax | -61.4 m | 71.1 m | 112.1 m | 185.4 m | 151.1 m | 225.8 m | 239.0 m | 305.0 m |
| Net income | 599.2 m | 576.4 m | 819.5 m | 835.5 m | 1.1 bn | 1.2 bn | 1.3 bn | 1.4 bn |
| Diluted EPS | 1.73 ≈ | 1.67 | 2.39 | 2.45 | 3.24 ≈ | 3.56 | 3.76 | 4.30 |
| Operating cash flow | 701.0 m | 831.7 m | 772.2 m ≈ | 1.1 bn ≈ | 1.3 bn | 1.3 bn | 869.0 m ≈ | 1.4 bn ≈ |
| Share repurchases | 625.0 k | 1.0 bn | 271.5 m ≈ | 501.9 m ≈ | 417.6 m | 981.7 m | 551.2 m ≈ | 1.3 bn ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 15-quarter history (min 19.5, median 47.8, max 1,331.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 994.1 m | 1.5 bn | 2.8 bn | 2.8 bn | 1.8 bn | 3.2 bn | 5.5 bn |
| Revenue YoY | unavailable | +46.0% | +92.5% | +0.9% | −34.6% | +75.1% | +70.0% |
| Net income | 119.0 m | -125.2 m | 35.4 m | -192.7 m | 356.7 m | 1.6 bn | 3.3 bn |
| Net income YoY | unavailable | −205.2% | unavailable | −643.8% | unavailable | +342.9% | +111.0% |
| Diluted EPS | 0.36 | -0.58 | 0.09 | -0.52 | 0.98 | 4.53 | 9.75 |
| Diluted EPS YoY | unavailable | −261.1% | unavailable | −677.8% | unavailable | +362.2% | +115.2% |
| net % | 12.0% | -8.6% | 1.3% | -6.8% | 19.4% | 49.0% | 60.8% |
| Free cash flow | 195.1 m | 219.6 m | 360.5 m | 412.1 m | 1.1 bn | 2.1 bn | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.5 bn USD
- Financial debt
- 3.5 bn USD
- Net debt
- 1.0 bn USD
- Equity
- 2.1 bn USD
- Total assets
- 7.3 bn USD
- Debt / equity
- 1.65x
- Current ratio
- 3.32x
- ROE
- 206.8%
- ROA
- 50.8%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.5 bn | 2.8 bn | 2.8 bn | 1.8 bn | 3.2 bn | 5.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 555.6 m | 988.1 m | 1.3 bn | 356.6 m | 520.6 m | 665.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 895.5 m ≈ | 1.8 bn ≈ | 1.6 bn ≈ | 1.5 bn ≈ | 2.7 bn ≈ | 4.8 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Research & development | 180.7 m | 366.4 m | 507.6 m | 333.8 m | 374.7 m | 226.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | -62.0 m | 150.0 m | -47.8 m | 772.4 m | 1.9 bn | 4.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 255.0 m | 431.1 m | 547.1 m | 489.0 m | 448.7 m | 194.8 m | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | 192.9 m ≈ | 581.1 m ≈ | 499.3 m ≈ | 1.3 bn ≈ | 2.4 bn ≈ | 4.3 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Interest expense | 77.9 m | 103.2 m | 172.2 m | 273.5 m | 317.2 m | 200.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Pre-tax income | -135.7 m | 46.3 m | -205.2 m | 501.6 m | 1.6 bn | 4.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | -9.8 m | 11.0 m | -12.2 m | 43.8 m | 22.4 m | 519.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | -125.2 m | 35.4 m | -192.7 m | 356.7 m | 1.6 bn | 3.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | -0.58 | 0.09 | -0.52 | 0.98 | 4.53 | 9.75 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 214.9 m | 342.8 m | 371.6 m | 362.6 m | 347.8 m | 342.0 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 317.2 m | 1.5 bn | 1.1 bn | 502.2 m | 697.0 m | 2.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Receivables | 297.0 m | 514.5 m | 702.8 m | 953.8 m | 1.3 bn | 1.8 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 663.0 m | 3.2 bn | 1.9 bn | 1.6 bn | 2.3 bn | 4.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 28.6 m | 63.6 m | — | — | — | — | SEC (XBRL)· 13 May 2022verified |
| Goodwill | 249.8 m | 966.4 m | 1.8 bn | 1.5 bn | 1.5 bn | 1.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 1.1 bn | 1.7 bn | 1.7 bn | 1.3 bn | 472.9 m | 396.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 2.2 bn | 6.2 bn | 5.8 bn | 5.4 bn | 5.9 bn | 7.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 147.3 m | 258.2 m | 273.2 m | 371.7 m | 504.3 m | 747.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | 15.2 m | 25.8 m | 33.3 m | 215.0 m | 0 | — | SEC (XBRL)· 27 Feb 2025verified |
| Long-term debt | 1.6 bn | 3.2 bn | 3.2 bn | 2.9 bn | 3.5 bn | 3.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 598.1 m | 640.1 m | 579.0 m | 944.1 m | 1.1 bn | 1.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 2.3 bn | 4.0 bn | 3.9 bn | 4.1 bn | 4.8 bn | 5.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | -158.5 m † | 2.1 bn † | 1.9 bn † | 1.3 bn † | 1.1 bn † | 2.1 bn † | SEC (XBRL)· 19 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 222.9 m | 361.9 m | 412.8 m | 1.1 bn | 2.1 bn | 4.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 3.2 m | 1.4 m | 662.0 k | 4.2 m | 4.8 m | — | SEC (XBRL)· 27 Feb 2025verified |
| Free cash flow | 219.6 m ≈ | 360.5 m ≈ | 412.1 m ≈ | 1.1 bn ≈ | 2.1 bn ≈ | — | SEC (XBRL)· 27 Feb 2025derived |
| Investing cash flow | -679.9 m | -1.2 bn | -1.4 bn | -77.8 m | -106.8 m | 358.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | 377.9 m | 3.1 bn | -526.8 m | -1.6 bn | -1.7 bn | -2.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 1.8 m | 0 | 338.9 m | 1.2 bn | 981.3 m | 2.2 bn | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 77 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 90.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation17
- Balance sheet77
- Quality100
- Growth96
- Returns93
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 20.47 – 372.90 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
- Peers: EV/Sales20.47 – 138.21 (Mid 64.58)16 companies used · median multiple 2.9x · quartiles 0.9x – 6.1xBMBL, DOCN, FDS, GOOGL, GRND, LGCL, MGNI, MTCH, RXT, RZLV, SANG, SIFY, SST, TRIP, WB, ZIP
- Peers: EV/EBITDA126.85 – 372.90 (Mid 284.86)8 companies used · median multiple 15.7x · quartiles 7.0x – 20.5xDOCN, FDS, GRND, LGCL, MGNI, TRIP, WB, ZIP
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 77/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 88.8% | 100 (on a fixed band) | 14% |
| EBIT margin · Quality | 77.8% | 100 (vs peers) | 11% |
| FCF margin · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 24.8% | 99 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 70.0% | 90 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | 0.1x | 55 (vs peers) | 8% |
| Current ratio · Balance sheet | 3.8x | 100 (on a fixed band) | 8% |
| EV/Sales · Valuation | 11.9x | 17 (vs peers) | 22% |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 3.6% | 93 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet77/100 · 2/2 factors with a value
- Growth96/100 · 2/2 factors with a value
- Quality100/100 · 2/3 factors with a value
- Returns93/100 · 1/1 factors with a value
- Valuation· partial17/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
AppLovin Corporation (APP). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 5.5 bn USD in 2025; YoY growth 70.0%; net margin 65.9%; ROE 210.1%; net debt/EBITDA 0.1x.
The estimated value range is 73.66–255.56 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 174.72 USD, the price of 271.75 USD leaves a potential of -35.7% (value / price − 1) and a margin of safety of -55.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 77/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: valuation. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 88.8%
- EBIT margin: 77.8%
- Revenue CAGR 3Y: 24.8%
- Revenue growth (YoY): 70.0%
- Current ratio: 3.8x
- Shareholder yield (distributions): 3.6%
What contradicts it
- EV/Sales: 11.9x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): FCF margin, FCF yield.
Versus the vertical median
Services-Computer Programming, Data Processing, Etc. (SIC 7370) · same industry (4-digit SIC) · compared with 39 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GOOGLAlphabet Inc. | 3,552.1 bn | 15.1 | 44.3% | 50.0% | +15.1% | −10% / +118% |
| APPAppLovin Corporation | 90.0 bn | 18.3 | 210.1% | 65.9% | +70.0% | −55% / +592% |
| NBISNebius Group N.V. | 35.8 bn | 428.8 | 2.1% | 15.6% | +479.0% | +49% / unavailable |
| FDSFactset Research Systems Inc | 12.1 bn | 23.5 | 25.5% | 21.5% | +6.7% | +23% / −25% |
| DOCNDigitalOcean Holdings, Inc. | 9.9 bn | 281.3 | 5.1% | 3.1% | +15.5% | +89% / +184% |
| MTCHMatch Group, Inc. | 9.1 bn | 13.7 | — | 20.7% | +0.2% | +21% / +24% |
| SOGPSound Group Inc. | 8.8 bn | 350.3 | 70.4% | 7.1% | +59.4% | −21% / +265% |
| SIFYSify Technologies Ltd | 5.8 bn | — | -4.1% | -2.0% | +9.0% | +20% / +53% |
| WIXWix.com Ltd. | 4.4 bn | 91.5 | — | 2.5% | +13.2% | −16% / −21% |
| MGNIMagnite, Inc. | 3.3 bn | 19.9 | 20.4% | 23.6% | +6.9% | +55% / +182% |
| GRNDGrindr Inc. | 2.4 bn | 27.6 | 108.7% | 18.7% | +27.6% | +9% / +108% |
| DVDoubleVerify Holdings, Inc. | 2.1 bn | 34.0 | 5.8% | 8.2% | +13.9% | +29% / −59% |
| BZKanzhun Limited | 1.7 bn | 41.6 | 16.0% | 33.1% | +17.3% | −21% / +6% |
| WBWeibo Corporation | 1.6 bn | 3.8 | 12.1% | 25.6% | +0.1% | −35% / −36% |
| DJTTrump Media & Technology Group Corp. | 1.2 bn | — | -78.9% | -28,867.7% | +1.8% | −61% / −74% |
| TRIPTripadvisor, Inc. | 1.2 bn | 332.1 | 0.8% | 0.3% | +3.1% | −31% / −43% |
| SMWBSimilarweb Ltd. | 766.1 m | — | -129.6% | -11.7% | +13.1% | +13% / +75% |
| BMBLBumble Inc. | 718.8 m | — | -85.9% | -61.8% | −9.9% | +69% / −57% |
| RXTRackspace Technology, Inc. | 716.2 m | — | — | -5.9% | −1.9% | +165% / +123% |
| NEXNNexxen International Ltd. | 513.3 m | 22.2 | 5.0% | 6.9% | −0.2% | +41% / +151% |
| RZLVRezolve AI plc | 460.8 m | — | -98.7% | -216.7% | +2,224.2% | −55% / −87% |
| YALAYalla Group Limited | 413.9 m | 6.8 | 19.6% | 43.3% | +0.7% | −20% / −6% |
| ZIPZiprecruiter, Inc. | 321.9 m | 12.9 | — | 6.2% | −5.3% | −5% / −66% |
| BLNDBlend Labs, Inc. | 302.7 m | — | — | -3.3% | +6.8% | −59% / +1% |
| SSTSystem1, Inc. | 161.0 m | — | -581.6% | -50.7% | −22.6% | −53% / −88% |
1- and 3-year price returns: for APP from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 180.79 Total return -33% · Per year -33% | 318.15 Total return 17% · Per year 17% | 477.23 Total return 76% · Per year 76% |
| 3 years | 214.44 Total return -21% · Per year -8% | 420.76 Total return 55% · Per year 16% | 687.21 Total return 153% · Per year 36% |
| 5 years | 254.36 Total return -6% · Per year -1% | 556.45 Total return 105% · Per year 15% | 989.59 Total return 264% · Per year 29% |
- Exit P/E± 105.19
- Net margin± 73.63
- Annual revenue growth± 54.92
- Annual dilution± 6.19
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
In brief
AppLovin Corporation is an AI-powered advertising platform offering advertisers and publishers solutions for user acquisition and monetization. Revenue reached 5480.717 million USD in fiscal 2025 1 and 1923.686 million USD in the second quarter of 2026 2, up 53% year over year 3. The company sold its Apps business in June 2025 and now operates a single reportable segment 1.
SWOT
Strengths
- The Axon AI technology and large-scale distribution create a competitive advantage that is hard to replicate.
- Operating profitability is very high and free cash flow is substantial.
- A revenue model tied to advertiser results aligns the company's interests with client success.
Weaknesses
- Revenue comes almost entirely from one product, Axon Ads Manager, which concentrates risk.
- Most clients have no long-term agreements, which makes demand harder to forecast.
- Quarterly results can fluctuate significantly, which may affect investor perception.
Opportunities
- Expansion into web e-commerce and connected TV through Wurl could open new sources of growth.
- The shift of ad networks to real-time bidding could boost adoption of the MAX product.
- Acquisitions and partnerships could accelerate growth and entry into new markets.
Threats
- Policy changes by major app stores could reduce campaign effectiveness.
- Competition from large technology companies with very large resources could increase pricing pressure.
- Privacy and artificial intelligence regulation could limit how data is used.
Risks
- Dependence on one producthigh
Most revenue comes from Axon Ads Manager, so problems with this product could affect the whole company.
- Dependence on third-party platformshigh
Access to app users depends on Apple App Store and Google Play policies, which can be changed unilaterally.
- Data security and cyber attacksmedium
The company processes large volumes of data, and a security breach could damage its reputation and trigger penalties.
- Indebtednessmedium
The company carries significant long-term debt, and debt service obligations could limit financial flexibility if conditions worsen.
- Multi-class share structurelow
The voting structure and controlled company status may limit the influence of minority shareholders on major decisions.
Investment thesis
What would need to be true (bull case)
- If revenue growth and high margins persist, the company could fund technology investment without relying on outside capital.
- Expansion into e-commerce and connected TV could add new revenue streams and reduce reliance on mobile gaming.
- The technological edge of the Axon AI engine could attract new advertisers and strengthen market position.
What would break the thesis
- Concentration of revenue in one product and dependence on app stores could leave results exposed to outside changes.
- Rapid growth may be hard to sustain, and short-term guidance does not guarantee the current pace will continue.
- Regulation of data and artificial intelligence could raise costs and restrict the targeting model.
What to watch
- Third-quarter results compared with revenue and Adjusted EBITDA guidanceQ3 2026
- Development of revenue from web e-commerce and Wurl2026
- Changes to Apple App Store and Google Play data policies2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
The business
AppLovin aims to create meaningful connections between companies and their ideal customers through end-to-end AI-powered advertising solutions. Revenue comes almost entirely from fees paid by advertisers for Axon Ads Manager, dynamically determined by campaign goals 1. In 2025 the company sold its Apps business to Tripledot for 400 million USD in cash plus equity, and that business is reported as discontinued operations 1.
The platform includes four products: Axon Ads Manager for user acquisition powered by the Axon AI engine; MAX, an in-app bidding tool for publisher monetization; Adjust, a measurement and analytics platform for marketers; and Wurl, a connected TV platform for video distribution and advertising 1. Six-month revenue reached 3766.135 million USD in 2026 2, and third-quarter guidance points to revenue between 2055 and 2085 million USD 3.
Operating profitability is high: Adjusted EBITDA was 4512.452 million USD in 2025, a margin of 82.3% 1, and reached an 83.9% margin in the second quarter of 2026 2. Free Cash Flow was 2150.065 million USD in the first six months of 2026 2. The company repurchased and withheld shares worth 551.3 million USD in the second quarter of 2026 3.
Segments
Axon Ads Manager
This is the main user acquisition product, matching advertiser demand with publisher supply through very fast auctions. It accounts for the vast majority of revenue, which is set dynamically based on advertisers' return targets 12.
Market context
The company operates in a fragmented advertising ecosystem alongside divisions of large companies and private firms, and advertisers typically work with several platforms at once 1. The mobile app ecosystem remains the core market, but AppLovin is pursuing expansion into web e-commerce and connected TV through Wurl 1.
Advertising demand is seasonal, linked to holidays, game launches and advertiser budgets, and as large e-commerce advertisers join the platform these effects could become more pronounced 1. Policy changes at Apple App Store and Google Play can quickly shift conditions across the market 1.
Trends
- Expansion into e-commerce and CTVtailwind
The company has begun offering its solutions to web advertisers and is expanding Wurl in connected TV. These new verticals could open further growth but remain at an early stage 1.
- Changes to app store policiesheadwind
Apple App Store and Google Play can change rules on user data and advertising identifiers, which could reduce the effectiveness of campaigns 1.
- Privacy and AI regulationmixed
Laws on data, privacy and the use of artificial intelligence in advertising keep evolving and could bring new compliance costs or restrictions 1.
Competitive position
The company competes with divisions of large companies such as Meta, Google, Amazon and Unity Software, as well as many private firms, several of which are also partners or clients 1. The main competitive factors are the ability to improve technology, relationships in the ecosystem, reach to many users and pricing 1.
Management believes the company competes favorably, particularly thanks to the Axon AI engine and the advantage of large-scale distribution 1. Because many competitors are also clients, market relationships are complex 1.
- Meta PlatformsMETA
Social platform with its own advertising solutions, cited as an important client as well as a competitor 1.
- Alphabet (Google)GOOGL
Company with large advertising platforms, present both as a rival and as a client 1.
- AmazonAMZN
Company active in advertising and e-commerce, areas into which AppLovin wants to expand 1.
- Unity SoftwareU
Company offering development and monetization tools for apps and games, named as a rival in the ecosystem 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Shareholder vote · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report05 Jun 2026Shareholder vote
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Proxy statement21 Apr 2026
- Current report07 Apr 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Annual report19 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / AppLovin Corporation · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / AppLovin Corporation · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / AppLovin Corporation · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.