APPAppLovin
Is the business good?
A genuinely good business: 8 of 9 health tests passed, earnings fully cash-backed (1.0×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 164% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is APP?
AppLovin keeps 77% of every revenue dollar as operating profit, against 5.7% for the median Advertising Agencies name.
Operating margin · Advertising Agencies median 5.7% · 12 months to Q2 2026
- Cash conversion
- 1.01×
Cash conversion · 1.02× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.5%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 4.7%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −4.3% |
| FY2021 | 5.4% |
| FY2022 | −1.7% |
| FY2023 | 42% |
| FY2024 | 59% |
| FY2025 | 76% |
Details›
- Gross margin12 months to Q2 2026
- 88%
- Operating margin12 months to Q2 2026
- 77%
- Net margin12 months to Q2 2026
- 65%
- R&D as % of revenue
- 4.7%
- Revenue, trailing twelve months
- $6.83B
- Net income, trailing twelve months
- $4.41B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Advertising Agencies
The closest names by size in the same industry