(APP) Applovin - Overview
Sector: Communication Services | Industry: Advertising Agencies | Exchange: NASDAQ (USA) | Market Cap: 165.410m USD | Total Return: 32.8% in 12m
Industry Rotation: -9.3
Avg Turnover: 1.88B
EPS Trend: 90.9%
Qual. Beats: 0
Rev. Trend: 98.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Confidence
AppLovin Corporation (NASDAQ: APP) provides an AI-driven software platform designed to optimize mobile advertising and app monetization. The company operates through two primary segments: an Advertising segment that facilitates real-time bidding and performance marketing, and an Apps segment comprised of a portfolio of first-party mobile games.
The business model relies on a proprietary machine learning engine, Axon, which automates ad placement and scaling for developers. In the broader application software sector, companies like AppLovin benefit from the shift toward programmatic advertising, where software replaces manual negotiations to purchase digital ad space in milliseconds.
Key tools in the AppLovin ecosystem include MAX, a header-bidding solution for publishers, and Adjust, an analytics suite used for attribution and measurement. The company has recently expanded its reach into the Connected TV (CTV) market through its Wurl platform, diversifying revenue beyond mobile devices. For a deeper look at these growth drivers, investors can review the detailed financial metrics on ValueRay.
Headquartered in Palo Alto, California, AppLovin serves a global client base ranging from independent developers to large-scale enterprises. The firm competes within the competitive ad-tech landscape by integrating its software stack directly with its own content library to refine its targeting algorithms.
- Axon AI engine upgrades drive advertising software revenue growth
- Expansion into Connected TV market diversifies revenue beyond mobile gaming
- Higher software margins offset lower-margin first-party application portfolio performance
- Regulatory changes in mobile tracking impact attribution and targeting effectiveness
- Scaling of Axon 2.0 technology improves advertiser return on investment metrics
| Net Income: 3.96b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.57 > 0.02 and ΔFCF/TA 12.78 > 1.0 |
| NWC/Revenue: 54.40% < 20% (prev 21.76%; Δ 32.64% < -1%) |
| CFO/TA 0.57 > 3% & CFO 4.43b > Net Income 3.96b |
| Net Debt (755.4m) to EBITDA (4.82b): 0.16 < 3 |
| Current Ratio: 3.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (338.7m) vs 12m ago -1.78% < -2% |
| Gross Margin: 88.37% > 18% (prev 0.81%; Δ 8.76k% > 0.5%) |
| Asset Turnover: 91.90% > 50% (prev 77.15%; Δ 14.75% > 0%) |
| Interest Coverage Ratio: 16.14 > 6 (EBITDA TTM 4.82b / Interest Expense TTM 205.3m) |
| A: 0.44 (Total Current Assets 4.85b - Total Current Liabilities 1.49b) / Total Assets 7.71b |
| B: 0.25 (Retained Earnings 1.93b / Total Assets 7.71b) |
| C: 0.49 (EBIT TTM 3.31b / Avg Total Assets 6.71b) |
| D: 0.35 (Book Value of Equity 1.86b / Total Liabilities 5.34b) |
| Altman-Z'' Score: 7.35 = AAA |
| DSRI: 0.89 (Receivables 1.96b/1.58b, Revenue 6.16b/4.40b) |
| GMI: 0.92 (GM 88.37% / 81.05%) |
| AQI: 0.64 (AQ_t 0.36 / AQ_t-1 0.56) |
| SGI: 1.40 (Revenue 6.16b / 4.40b) |
| TATA: -0.06 (NI 3.96b - CFO 4.43b) / TA 7.71b) |
| Beneish M-Score: -3.18 (Cap -4..+1) = AA |
Over the past week, the price has changed by +6.34%, over one month by -1.77%, over three months by +15.19% and over the past year by +32.84%.
- StrongBuy: 16
- Buy: 4
- Hold: 4
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 644.5 | 33.6% |
P/E Forward = 31.348
P/S = 26.834
P/B = 69.9857
P/EG = 1.3562
Revenue TTM = 6.16b USD
EBIT TTM = 3.31b USD
EBITDA TTM = 4.82b USD
Long Term Debt = 3.51b USD (from longTermDebt, last quarter)
Short Term Debt = 13.9m USD (from shortTermDebt, last fiscal year)
Debt = 3.51b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 755.4m USD (from netDebt column, last quarter)
Enterprise Value = 166.17b USD (165.41b + Debt 3.51b - CCE 2.76b)
Interest Coverage Ratio = 16.14 (Ebit TTM 3.31b / Interest Expense TTM 205.3m)
EV/FCF = 37.74x (Enterprise Value 166.17b / FCF TTM 4.40b)
FCF Yield = 2.65% (FCF TTM 4.40b / Enterprise Value 166.17b)
FCF Margin = 71.42% (FCF TTM 4.40b / Revenue TTM 6.16b)
Net Margin = 64.29% (Net Income TTM 3.96b / Revenue TTM 6.16b)
Gross Margin = 88.37% ((Revenue TTM 6.16b - Cost of Revenue TTM 717.1m) / Revenue TTM)
Gross Margin QoQ = 88.95% (prev 88.93%)
Tobins Q-Ratio = 21.56 (Enterprise Value 166.17b / Total Assets 7.71b)
Interest Expense / Debt = 1.46% (Interest Expense 51.2m / Debt 3.51b)
Taxrate = 15.77% (225.8m / 1.43b)
NOPAT = 2.79b (EBIT 3.31b * (1 - 15.77%))
Current Ratio = 3.24 (Total Current Assets 4.85b / Total Current Liabilities 1.49b)
Debt / Equity = 1.49 (Debt 3.51b / totalStockholderEquity, last quarter 2.36b)
Debt / EBITDA = 0.16 (Net Debt 755.4m / EBITDA 4.82b)
Debt / FCF = 0.17 (Net Debt 755.4m / FCF TTM 4.40b)
Total Stockholder Equity = 1.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 59.08% (Net Income 3.96b / Total Assets 7.71b)
RoE = 222.0% (Net Income TTM 3.96b / Total Stockholder Equity 1.78b)
RoCE = 62.51% (EBIT 3.31b / Capital Employed (Equity 1.78b + L.T.Debt 3.51b))
RoIC = 52.67% (NOPAT 2.79b / Invested Capital 5.30b)
WACC = 18.17% (E(165.41b)/V(168.92b) * Re(18.53%) + D(3.51b)/V(168.92b) * Rd(1.46%) * (1-Tc(0.16)))
Discount Rate = 18.53% (= CAPM, Blume Beta Adj.) -> capped to 17.38%
Shares (quarterly) Correlation: -82.22 | Cagr: -1.13%
[DCF] Terminal Value 55.01% ; FCFF base≈3.65b ; Y1≈4.51b ; Y5≈7.69b
[DCF] Fair Price = 132.3 (EV 41.19b - Net Debt 755.4m = Equity 40.44b / Shares 305.7m; r=18.17% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 90.94 | EPS CAGR: 411.3% | SUE: 0.79 | # QB: 0
Revenue Correlation: 98.17 | Revenue CAGR: 32.53% | SUE: 0.34 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.74 | Chg30d=+1.45% | Revisions=+22% | Analysts=17
EPS next Quarter (2026-09-30): EPS=4.09 | Chg30d=+0.80% | Revisions=+0% | Analysts=17
EPS current Year (2026-12-31): EPS=16.08 | Chg30d=+1.97% | Revisions=+24% | GrowthEPS=+64.9% | GrowthRev=+49.6%
EPS next Year (2027-12-31): EPS=20.93 | Chg30d=+1.56% | Revisions=+52% | GrowthEPS=+30.2% | GrowthRev=+29.2%
[Analyst] Revisions Ratio: +52%