APP
AppLovin Corporation
Communication Services · Advertising Agencies · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- AppLovin earns perfect scores on growth and profitability, reflecting 70.0% revenue growth, 111.0% net income growth, and a 60.8% net margin in FY2025 [growth.revenue.yoy, growth.net_income.yoy, profitability.net_margin_pct].
- The momentum factor is near-perfect, supported by four consecutive quarters of rising revenue, operating income, and net income through 2026Q1 [momentum.revenue_quarterly, momentum.operating_income_quarterly, momentum.net_income_quarterly].
- The composite score is held to 61.0 by a mid-range financial health score due to a debt-to-equity ratio of 1.65, a zero dividend score, and no theme assignment contributing additional points [financial_health.debt_to_equity, dividend.none, theme.none].
Why Not Higher
- The absence of a dividend and the lack of a macro theme assignment together contribute zero points across two scoring factors, directly capping the achievable composite score [dividend.none, theme.none].
- The elevated debt-to-equity ratio of 1.65 limits the financial health score to the mid-range despite strong interest coverage of 20.1x, preventing a higher overall rating [financial_health.debt_to_equity, financial_health.interest_coverage].
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $3,224,058,000 to FY2025's $5,480,717,000, a gain of +70.0%. Net income rose +111.0% over the same period, and diluted EPS expanded from $4.53 in FY2024 to $9.75 in FY2025, a +115.2% increase.
The model rewards top-line, bottom-line, and per-share growth simultaneously; all three metrics showed exceptional acceleration from FY2024 to FY2025, justifying the maximum score.
In FY2025, AppLovin posted a net margin of 60.8%, an operating margin of 75.8%, and a return on assets of 45.9%.
These figures reflect an exceptionally capital-efficient business where the majority of revenue converts directly to operating and net income, which the model recognizes with a perfect profitability score.
In FY2025, AppLovin carried a debt-to-equity ratio of 1.65, while its interest coverage ratio (operating income divided by interest expense) stood at 20.1, against total assets of $7,259,610,000.
The elevated debt-to-equity ratio of 1.65 in FY2025 signals meaningful leverage, which the model penalizes, while the strong interest coverage of 20.1x partially offsets that concern, resulting in a mid-range score.
Revenue rose sequentially each quarter from $1,258,754,000 in 2025Q2 to $1,842,449,000 in 2026Q1. Operating income followed the same unbroken upward path, from $957,682,000 in 2025Q2 to $1,439,933,000 in 2026Q1, and net income climbed from $819,531,000 in 2025Q2 to $1,205,613,000 in 2026Q1.
The model rewards consistent sequential acceleration across revenue, operating income, and net income over the trailing four quarters; the near-perfect but not maximum score likely reflects the model's calibration of the pace of that acceleration relative to its full scoring range.
AppLovin does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a score of zero for this factor when no dividend is paid, as income-oriented criteria cannot be satisfied without a distribution to shareholders.
AppLovin is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment is a neutral classification outcome; it does not reflect negatively on the company's business or prospects, but it does mean no theme-based score contribution is applied under the current methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
AppLovin delivered exceptional financial performance in FY2025, with revenue growing 70.0% year-over-year to $5,480,717,000 and net income surging 111.0%, reflecting a highly capital-efficient business model [growth.revenue.yoy, growth.net_income.yoy]. Profitability metrics are outstanding, with a net margin of 60.8%, an operating margin of 75.8%, and a return on assets of 45.9% [profitability.net_margin_pct, profitability.operating_margin_pct, profitability.roa_pct]. Sequential quarterly momentum remains unbroken, with revenue climbing from $1,258,754,000 in 2025Q2 to $1,842,449,000 in 2026Q1 [momentum.revenue_quarterly]. The primary offsets to an otherwise elite profile are a debt-to-equity ratio of 1.65 and the absence of a dividend, which limit the composite score to 61.0 out of 100 [financial_health.debt_to_equity, dividend.none].
Plain English
AppLovin is growing incredibly fast and keeping most of its revenue as profit, but it carries a meaningful amount of debt and pays no dividend, which holds its overall score to a medium level [growth.revenue.yoy, profitability.net_margin_pct, financial_health.debt_to_equity, dividend.none].
Bull Case vs. Bear Case
Bull Case
- Revenue grew 70.0% and net income grew 111.0% year-over-year in FY2025, with diluted EPS expanding 115.2% — all three growth metrics firing simultaneously at exceptional rates [growth.revenue.yoy, growth.net_income.yoy, growth.eps_diluted.yoy].
- The business converts an extraordinary share of revenue into profit, posting a 75.8% operating margin and 60.8% net margin in FY2025, indicating a highly scalable and capital-efficient model [profitability.operating_margin_pct, profitability.net_margin_pct].
- Sequential quarterly momentum is consistent and accelerating, with revenue, operating income, and net income each rising every quarter from 2025Q2 through 2026Q1 without interruption [momentum.revenue_quarterly, momentum.operating_income_quarterly, momentum.net_income_quarterly].
Bear Case
- AppLovin carries a debt-to-equity ratio of 1.65 in FY2025, representing meaningful financial leverage that introduces balance sheet risk even as operating performance remains strong [financial_health.debt_to_equity].
- The company pays no dividend, meaning shareholders receive no current income distribution, which excludes AppLovin from income-oriented investment mandates and results in a zero score on that factor [dividend.none].
- AppLovin is not assigned to any of the 24 tracked macro themes in the model, meaning it receives no theme-based score contribution, which constrains the composite score regardless of its operational strength [theme.none].
What Could Change the Picture
Bullish Triggers
- If AppLovin were to reduce its debt-to-equity ratio meaningfully below 1.65, the financial health score would improve and could push the composite score higher [financial_health.debt_to_equity].
- Continued sequential acceleration in revenue and net income beyond the 2026Q1 levels already demonstrated could further strengthen the momentum factor contribution [momentum.revenue_quarterly, momentum.net_income_quarterly].
Bearish Triggers
- Any deterioration in the operating margin from its current 75.8% level — for example, from rising costs — would signal that the exceptional profitability profile is under pressure [profitability.operating_margin_pct].
- A rise in the debt-to-equity ratio above 1.65 or a decline in interest coverage below the current 20.1x would indicate worsening financial health and increase balance sheet risk [financial_health.debt_to_equity, financial_health.interest_coverage].
Risk Profile
Medium RiskThe primary financial risk is AppLovin's debt-to-equity ratio of 1.65 in FY2025, which signals meaningful leverage relative to equity; however, an interest coverage ratio of 20.1x indicates that operating income comfortably services current debt obligations [financial_health.debt_to_equity, financial_health.interest_coverage]. Sequential momentum has been consistently positive through 2026Q1, but any reversal in that trend would be a material signal given the elevated leverage in the capital structure [momentum.revenue_quarterly, financial_health.debt_to_equity].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.