Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AppLovin (APP) delivered exceptional FY2025 results with revenue surging 70% to $5.48B and net income more than doubling to $3.33B, driven by explosive operating leverage that pushed operating margins to a remarkable 75.8%.
Revenue
$5.48B
+69.99% YoY
EPS (Diluted)
$9.75
+115.23% YoY
Operating Income
$4.15B
+117.27% YoY
Source: SEC XBRL
AppLovin (APP) reported FY2025 revenue of $5.48B, up 70.0% year over year. Operating margin was 75.8%, up 16.5 points from 59.3% a year earlier. Operating cash flow was $3.97B, up 89.2% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.76 | 3.76 | Beat +0.1% |
| Mar 2026 | 3.56 | 3.44 | Beat +3.6% |
| Dec 2025This filing | 3.24 | 2.96 | Beat +9.5% |
| Sep 2025 | 2.45 | 2.42 | Beat +1.0% |
Reported EPS of $3.24 versus the $2.96 analyst consensus — a +9.5% beat for Dec 2025.
Compiled by AI from this SEC filing
Revenue grew 70.0% year-over-year from $3.22B to $5.48B in FY2025, reflecting strong demand for AppLovin's advertising technology platform and continued monetization of its software solutions.
Source: 10-K Income Statement
Operating income surged 117.3% to $4.15B while operating margin expanded dramatically from 59.3% to 75.8%, demonstrating that revenue growth far outpaced cost growth and the business is highly scalable.
Source: 10-K Income Statement
R&D expenses declined 39.6% from $374.7M to $226.5M, suggesting the company has moved past heavy investment phases and is now harvesting returns on prior technology development, contributing to margin expansion.
Source: 10-K Income Statement
Operating cash flow nearly doubled to $3.97B (+89.2%), and the company deployed $2.19B in share buybacks (+123.4% YoY), signaling strong confidence in the business and commitment to returning capital to shareholders.
Source: 10-K Cash Flow Statement
Cash and equivalents tripled to $2.49B (+256.8%), while long-term debt remained essentially flat at $3.51B, improving the company's net debt position and overall financial flexibility.
Source: 10-K Balance Sheet
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
AppLovin carries $3.51B in long-term debt against $2.13B in stockholders' equity, resulting in a debt-to-equity ratio of approximately 2.4x. While cash generation is strong, this leverage level could become problematic if revenue growth decelerates or credit markets tighten. Rising interest rates could also increase the cost of refinancing this debt.
Source: 10-K Balance Sheet
AppLovin's dramatic revenue growth is heavily tied to the mobile advertising ecosystem, which is subject to cyclical ad spending patterns and platform policy changes (e.g., Apple ATT, Google Privacy Sandbox). Any significant pullback in digital ad budgets or further privacy-related restrictions could materially impact revenue. The 70% revenue growth rate may be difficult to sustain as the business scales.
Source: 10-K Income Statement
R&D expenses fell 39.6% to $226.5M in FY2025, which while boosting near-term margins, could signal reduced investment in future product innovation. In a fast-moving ad-tech landscape, underinvestment in technology could erode competitive advantages over time if rivals accelerate their own development.
Source: 10-K Income Statement
The company spent $2.19B on share buybacks in FY2025, representing a significant portion of its $3.97B operating cash flow. While this reflects confidence in the business, sustaining this level of capital return alongside debt obligations could strain financial flexibility if operating performance softens.
Source: 10-K Cash Flow Statement
AppLovin's ROE of 156.2% appears extraordinary but is significantly amplified by financial leverage rather than purely operational performance. The relatively modest equity base ($2.13B) versus total assets ($7.26B) means that any adverse business development could disproportionately impact equity value.
Source: 10-K Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.48 $B | 3.22 $B | +69.99% |
Cost of Revenue $M | 665.14 $M | 520.61 $M | +27.76% |
Operating Income $B | 4.15 $B | 1.91 $B | +117.27% |
Net Income $B | 3.33 $B | 1.58 $B | +111.00% |
EPS (Basic) $ | 9.84 $ | 4.68 $ | +110.26% |
EPS (Diluted) $ | 9.75 $ | 4.53 $ | +115.23% |
R&D Expense $M | 226.51 $M | 374.71 $M | -39.55% |
Answers draw on this SEC filing and the data on this page
AppLovin's Q2 FY2026 earnings were propelled by a 53% revenue increase to $1.92 billion, driven by a 58% rise in net revenue per installation, while net income jumped 55% to $1.27 billion.
AppLovin (APP) delivered exceptional Q1 FY2026 results with revenue surging 59% YoY to $1.84B and net income more than doubling to $1.21B, driven by powerful operating leverage that pushed operating margins above 78%.
Other companies in Application Software