Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Applovin Corp

APP · Nasdaq · Technology

Fundamental quality

EXCELLENT

95

out of 100

Applovin Corp fits the profile of a quality compounder: it pairs high return on capital (ROE 167.7%) with wide margins (net margin 64.3%) and a business that keeps growing (31.8% a year). On fundamental quality it scores 95 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

AppLovin is a mobile-app advertising platform: its AI engine decides which ad to show each user to maximize installs and purchases, mostly in games. It went from being a game studio to selling the advertising machinery to everyone else.

What will shape its future

  • The efficacy of its AI engine (Axon): every algorithm improvement translates almost directly into revenue.
  • Its expansion beyond gaming into e-commerce and other advertisers.
  • An inherently opaque business: the market debates how much of its magic is sustainable.

Breakdown by area

I.Growth
95

EPS growth: 150% · Revenue growth: 31.8%

II.Profitability
95

Net margin: 64.3% · ROE: 167.7% · ROIC: 122.1%

III.Financial health
95

Net debt/EBITDA: 0.19x

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 100%
ROEbeats 99%
Growthbeats 85%
Less debtbeats 66%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Applovin Corp strengths

  • Outstanding return on equity (ROE of 167.7%): it puts shareholder capital to good use.
  • Growing earnings per share (150% annualized).
  • Exceptional net margin (64.3%), high even for its sector: the business is clearly profitable.
  • Revenue growing strongly (31.8% annualized).

Applovin Corp risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Applovin Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
20201,451-1252201,282
20212,793353601,707
20222,817-1934122,131
20231,8423571,0572,619
20243,2241,5802,0942,812
20255,4813,3341,026

Between 2020 and 2025, revenue went from $1,451M to $5,481M (+278%) and net income went from -$125M to $3,334M (+2763%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+59%
  • Net income+109.2%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Applovin Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Applovin Corp a good company to invest in?

In terms of business quality, Applovin Corp scores 95 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Applovin Corp a profitable company?

Very. Applovin Corp shows a net margin of 64.3% and an ROE of 167.7%, typical of a highly profitable business.

Does Applovin Corp have a lot of debt?

Not particularly. Its net debt is 0.19 times its EBITDA, a low level.

Is Applovin Corp growing?

Its revenue has grown 31.8% annualized in recent years and its earnings per share 150%.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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