AppLovin CorporationAPP
NASDAQ • Technology
$455.19
P/E
38.84
PEG
0.36
FCF Yield
—
Rev Growth YoY
+24.2% YoY
Gross Margin
88.9%
Health Score
8/10
D/E Ratio
1.66
Confidence
—
Business Snapshot
AppLovin operates a marketing platform for mobile app developers, generating revenue primarily through its AI-driven software for advertising and app discovery. The company competes in the mobile ad-tech market as a dominant player with its integrated ad network and attribution technology. With TTM revenue of $6.16B, AppLovin operates at a substantial scale within the software application industry. A defining characteristic is its high-margin business model—gross margin of 88.9%—combined with strong free cash flow generation, which underpins reinvestment in growth and platform innovation.
Financial Health
Gross margin of 88.9% is unchanged year-over-year, while net margin stands at a robust 64.3%, highlighting exceptional profitability. The balance sheet shows D/E of 1.66x, a moderate but manageable leverage level, and a current ratio of 3.32x, indicating ample short-term liquidity...
Risk Assessment
- VALUATION — Price/Sales of 26.77x and Price/Book of 106.68x are extreme multiples that far exceed typical software application peers, leaving little room for multiple compression.
- DEBT — Debt/equity of 1....