APP AppLovin Corp

Overview and Growth

AppLovin Corp generated $5.48B of revenue in fiscal 2025, with net income of $3.33B and an operating cash inflow of $3.97B. Revenue of $5.48B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $3.22B in fiscal 2024, revenue recorded a 70.0% year-over-year increase. The company reported diluted EPS of $9.75, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 115.2% increase from fiscal 2024 diluted EPS of $4.53. The company employed $7.26B of total assets, the balance-sheet base supporting its current operating and cash-flow results. Asset turnover was 0.75x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $4.82B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 87.9% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $4.15B, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 75.8%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $3.33B, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 60.8% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $3.95B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 72.1%, adding a pre-tax profitability layer between revenue and net income. The company recognized $519.72M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 13.1%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 156.2%, indicating the profitability achieved on book capital. Net income represented 45.9% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

Total assets were $7.26B, supported by $5.12B of liabilities and $2.13B of shareholder equity. At period end, current assets of $4.43B compared with current liabilities of $1.33B, defining the company’s short-term resource position. Current assets covered current liabilities by 3.32x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $2.49B, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 186.5% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $3.51B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 1.65x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 48.4%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 70.6%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 34.3%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 23.7% higher than fiscal 2024 assets of $5.87B, measuring the company’s own balance-sheet change. Book equity was 95.9% higher than fiscal 2024 equity of $1.09B, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $3.97B, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 1.19x of net income, showing how strongly accounting earnings converted into cash from operations.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.