Quality Investor

AppLovin Corporation

Rank #55Hypergrowth

APP · Nasdaq · Communication Services

AppLovin Corporation (APP) — Rank #55 by gross profitability (GP/assets 0.58) · ROE 105.4% · Piotroski F-Score 9 / 9.

As-of 2026-09-15 · CIK 0001751008 · all metrics point-in-time as of the filing date.

About

AppLovin Corporation provides end-to-end artificial intelligence-powered advertising solutions for businesses in the United States and internationally.

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It operates through two segments, Advertising and Apps. The company offers Axon Ads Manager, a suite of marketing solutions that enables developers to automate, optimize, and manage marketing efforts; MAX, an in-app bidding technology that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform; and Wurl, a connected TV platform, which distributes streaming video for content companies, provides advertising and publishing solutions. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, and indie studio developers.

The company was incorporated in 2011 and is headquartered in Palo Alto, California.

Industry
Advertising Agencies
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

APP+351.4% · +35.2% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$109.88B

P/E (annual)

33.7

P/S (annual)

20.0

P/B

34.7

P/OCF (annual)

27.7

Shareholder Yield

1.7%

Employees

876

Industry

Advertising Agencies

Exchange

Nasdaq

Signal Flags

2 green1 yellow
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.58
Return on equity
105.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.61
Current ratio
4.30×
Net cash
-$661.77M

Cash Flow

1/1 pass
Positive FCF
N/A
Cash-backed earnings
N/A
Accruals healthy
PASS
SBC / revenue
3.8%

Growth

2/2 pass
Revenue growth
70.0%
Piotroski F-Score
9 / 9
Share dilution
-1.7%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

42.3xCheap
42.3xmed 70.7x495.0x

P / S

Price / revenue per share

25.7xExpensive
1.8xmed 6.6x25.7x

P / B

Price / book value per share

66.0xExpensive
2.6xmed 17.0x102.3x

P / GP

Price / gross profit per share

29.3xExpensive
3.2xmed 10.7x31.5x

P / FCF

Price / free cash flow per share

N/A
12.2xmed 43.0x53.2x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.58

Primary signal (Novy-Marx).

3rd of 14 SIC 7370 peers

Return on equity

105.4%

Gross margin

87.9%

1st of 14 SIC 7370 peers

Revenue growth (YoY)

70.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

24.8%

Revenue CAGR (5Y)

30.4%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.61

13th of 13 SIC 7370 peers (best = lowest)

Current ratio

4.30×

3rd of 14 SIC 7370 peers

Quick ratio

4.17×

Net cash

-$661.77M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

Operating cash flow minus capex.

Positive free cash flow

N/A

FCF / net income

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

N/A

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.8%

Stock-based comp intensity.

Piotroski F-Score

F-Score

9 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Startup
Capital Return