AppLovin Corp (APP)

Price$310.75Cached quoteAs of 2026-09-25 20:16 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth already carries a demanding durability assumption.

The latest verified close was $315.44 on August 14. Using 335.3 million June shares, that implies about $105.8 billion of market value. Trailing earnings were roughly $4.41 billion, while operating cash flow was about $4.53 billion, placing the shares near 24 times both measures. An illustrative model reaches roughly today’s value if cash grows 12% annually for five years, then 5% for five years, using a 10% required return and 3% lasting growth. Those are credible but not conservative assumptions.

Big pictureExceptional profit growth is real, but advertising demand and model improvements can produce uneven quarters.

Revenue rose from $3.22 billion in 2024 to $5.48 billion in 2025, while net income more than doubled to $3.33 billion. Second-quarter 2026 revenue grew 53% to $1.92 billion, and net income reached $1.27 billion. Trailing operating cash flow slightly exceeded trailing earnings, supporting profit quality. However, AppLovin produced an operating loss in 2022, and its filing says revenue remains concentrated in mobile gaming. Advertisers can reduce spending quickly, making the current profitability less dependable than subscription revenue.

Business strengthRapid cash generation has nearly removed net debt, although recent buybacks were poorly timed.

June cash reached $3.05 billion against $3.52 billion of debt, shrinking net debt to $462 million from $2.81 billion at 2024 year-end. Current assets were more than four times current liabilities, so near-term obligations look manageable. AppLovin spent $1.53 billion repurchasing shares during 2026’s first half; outstanding shares fell 0.9% despite $169 million of employee share compensation. The repurchases appear to have averaged roughly $450 to $480 per share, well above today’s price, demonstrating real dilution control but weak recent purchase timing.

What could change the storyBroader advertiser adoption could create upside, while slower model gains would expose today’s valuation.

The strongest bull case is that AppLovin Ads turns its billion-plus daily-user reach into a broader commerce advertising business. Third-quarter guidance of $2.06 billion to $2.09 billion still implies about 47% yearly growth. The bear case is concentration: Apple, Google, and Meta control important platforms, while management attributed the second-quarter shortfall partly to slower advertising-model improvements and higher computing investment. Sustained revenue growth above 25% with matching cash growth would make 24 times trailing cash look inexpensive; a fall toward low-teens growth would make it demanding.

AI: News

Growth misses high expectationsRevenue grew rapidly, but a small shortfall and slower model progress challenged unusually high expectations.

On August 5, AppLovin reported second-quarter revenue of $1.92 billion, up 53% but below the roughly $1.94 billion consensus. Earnings per share of $3.76 narrowly exceeded estimates. Third-quarter revenue guidance of $2.06 billion to $2.09 billion roughly matched consensus, but implied slower growth. The shares declined 19.7% on August 6. Associated Press linked the move to mixed results; the size of the reaction suggests expectations, not current profitability, were the main concern.

Advertising platform opensAny advertiser can now use AppLovin, expanding the opportunity beyond selected mobile-focused customers.

On June 23, AppLovin removed referral requirements from its self-service advertising platform. Management said businesses can now create campaigns reaching more than one billion daily users, after an eight-month referral phase. This could diversify revenue beyond mobile gaming and reduce sales friction. However, the announcement included no adoption, retention, or revenue figures, and no reliable isolated market reaction was established. Future advertiser spending and repeat usage matter more than sign-up availability alone.

Regulatory inquiry closesRegulators recommended no action, removing an uncertainty without proving every business practice is risk-free.

During the August 5 earnings call, AppLovin’s finance chief said the Securities and Exchange Commission had concluded its data-practices inquiry with no recommended action. This removed a legal and reputational overhang that had remained active earlier in 2026. The announcement came alongside disappointing earnings expectations, so its separate stock-price effect cannot be measured reliably. Closure is favorable, but it is not regulatory approval of all practices and does not remove Apple, Google, privacy, or platform-policy risks.

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Revenue

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2020

2021

2022

2023

2024

2025

Net income

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2022

2023

2024

2025

Free cash flow

2019

2020

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2025

Total cash / debt

CashTotal debt

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2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$5.48B	$3.22B	$1.84B	$2.82B	$2.79B	$1.45B	$994.1M
Gross profit	$4.82B	$2.70B	$1.49B	$1.56B	$1.81B	$895.5M	$752.8M
Gross margin	87.86%	83.85%	80.64%	55.41%	64.62%	61.71%	75.73%
Research & development	$226.5M	$374.7M	$333.8M	$507.6M	$366.4M	$180.7M	$45.0M
Operating expenses	$1.33B	$1.31B	$1.07B	$2.86B	$2.64B	$1.51B	$799.7M
Operating income	$4.15B	$1.91B	$772.4M	−$47.8M	$150.0M	−$62.0M	$194.4M
Operating margin	75.75%	59.27%	41.94%	−1.70%	5.37%	−4.28%	19.55%
EBITDA	$4.35B	$2.36B	$1.26B	$499.3M	$581.1M	$192.9M	$287.2M
EBITDA margin	79.31%	73.19%	68.49%	17.72%	20.80%	13.29%	28.89%
Net income	$3.33B	$1.58B	$356.7M	−$192.7M	$35.4M	−$125.2M	$119.0M
Net profit margin	60.83%	49.00%	19.37%	−6.84%	1.27%	−8.63%	11.97%
Basic EPSper basic share	$9.84	$4.68	$1.01	-$0.52	$0.10	-$0.58	$0.36
Diluted EPSper diluted share	$9.75	$4.53	$0.98	-$0.52	$0.09	-$0.58	$0.36

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

7.88%of listed shares

BlackRock, Inc.24.04M shares · Jun 30, 2026

View holders

Top 20 reported holders of APP
Holder	% owned
BlackRock, Inc.	7.88%24.04M shares
VANGUARD CAPITAL MANAGEMENT LLC	5.82%17.74M shares
FMR LLC	5.67%17.29M shares
STATE STREET CORP	3.97%12.1M shares
Invesco Ltd.	3.60%10.98M shares
Capital World Investors	2.67%8.15M shares
GEODE CAPITAL MANAGEMENT, LLC	2.41%7.36M shares
Vivas Eduardo	≈2.22%6.79M shares
BAILLIE GIFFORD & CO	2.12%6.47M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	2.08%6.35M shares
MORGAN STANLEY	1.90%5.79M shares
PRICE T ROWE ASSOCIATES INC /MD/	1.56%4.77M shares
Foroughi Arash Adam	≈1.52%4.64M shares
JPMORGAN CHASE & CO	1.43%4.35M shares
WCM INVESTMENT MANAGEMENT, LLC	1.22%3.71M shares
GOLDMAN SACHS GROUP INC	1.05%3.19M shares
KENSICO CAPITAL MANAGEMENT CORP	1.04%3.18M shares
Capital International Investors	0.97%2.97M shares
NORGES BANK	0.96%2.92M shares
BANK OF AMERICA CORP /DE/	0.95%2.9M shares

Percentages use 305.08M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)1885$5.71B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 16, 2026Form 4 · 10b5-1	Vivas EduardoDirector	SellClass A Common Stock	348	$520.30	$181.1K	6.79M
Jun 16, 2026Form 4 · 10b5-1	Vivas EduardoDirector	SellClass A Common Stock	40	$519.50	$20.8K	6.79M
Jun 16, 2026Form 4 · 10b5-1	Vivas EduardoDirector	SellClass A Common Stock	547	$518.22	$283.5K	6.79M
Jun 16, 2026Form 4 · 10b5-1	Vivas EduardoDirector	SellClass A Common Stock	70	$517.60	$36.2K	6.79M
Jun 16, 2026Form 4 · 10b5-1	Vivas EduardoDirector	SellClass A Common Stock	100	$516.81	$51.7K	6.79M