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AppLovin
S&P 500 Nasdaq 100
$168.4B
Market Cap
69.1
P/E
0.94
PEG
93.4%
ROCE
206.8%
ROE
1.65
D/E
75.8%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for APP including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

AppLovin Corporation provides end-to-end artificial intelligence-powered advertising solutions for businesses in the United States and internationally.

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📈 Growth Pattern
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⭐ Superinvestors Holding APP
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Manager Shares Value % of Fund Period
Tiger Global Management Tiger Global Management LLC 1.00M $398.0M 1.74% Mar 2026
Jim Simons Renaissance Technologies LLC 436.5K $173.7M 0.27% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q1 2026
Revenue
$1.84B
+59% YoY
Adjusted EBITDA
$1.56B
+66% YoY
Net Income
$1.21B
+109% YoY
Free Cash Flow
$1.29B
not disclosed
What Went Right
  • Revenue and adjusted EBITDA exceeded high end of guidance with 85% margin, up ~400 bps YoY.
  • Consumer vertical growing rapidly: March up ~25% vs January, April set a new monthly record above any Q4 month.
  • Gaming business continues robust growth with no slowdown; hybrid monetization trend expanding total addressable market.
What to Watch
  • Free cash flow conversion expected to normalize to ~75% of EBITDA for 2026 due to tax payment timing in Q2/Q3.
  • Self-serve platform opening in June is still pending; smooth execution is critical for scaling new advertisers.
  • Consumer vertical early stage; success relies on continued model improvements and density of advertisers.
Management Guidance
  • Q2 2026 revenue expected between $1.915B and $1.945B (52%-55% YoY growth).
  • Q2 2026 adjusted EBITDA expected between $1.615B and $1.645B, margin ~84%-85%.
  • Platform to open to public self-serve in June 2026; AI creative tools rolling out shortly.
Investor Lens
The thesis is stronger after this call. AppLovin delivered another beat-and-raise quarter with accelerating scale in both gaming (sustained high growth) and consumer vertical (record spend in April). EBITDA margins hit 85%, demonstrating operating leverage. The upcoming self-serve platform launch in June plus AI-driven creative tools should unlock a vast new cohort of advertisers. Management remains disciplined on capital allocation, with $2.3B remaining in buyback authorization. No cannibalization between verticals is observed, and model improvements continue to compound returns.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong beat with 59% revenue growth and 85% EBITDA margin.
Revenue
Revenue for Q1 2026 was $1.84 billion, up 59% year-over-year and 11% sequentially. Growth was driven by both gaming (still the largest segment) and the rapidly scaling consumer vertical, which exited Q1 with March spending ~25% above January and reached a record month in April.
Profitability
Net income was $1.206 billion, up 109% year-over-year. Adjusted EBITDA was $1.557 billion, up 66% YoY. Quarter-over-quarter flow through to adjusted EBITDA was 86%, reflecting strong operating leverage.
Margins
Adjusted EBITDA margin reached 85%, expanding approximately 400 basis points from the same period last year. The margin improvement reflects technology advancements and scale benefits, with no major cost headwinds flagged.
Balance Sheet
Cash and cash equivalents ended at $2.76 billion. Free cash flow for the quarter was $1.29 billion, slightly elevated due to timing of interest and tax payments. The company repurchased $1 billion of shares in Q1, leaving $2.3 billion remaining under authorization.
Key Risks
Management flagged that free cash flow conversion will normalize to ~75% of EBITDA for the full year as cash tax payments are heavier in Q2 and Q3. Additionally, the self-serve platform launch in June is a key execution milestone. The consumer vertical is still early; sustained growth depends on further model improvements and advertiser density.
Outlook
For Q2 2026, revenue is guided between $1.915B and $1.945B (52%-55% YoY growth) with adjusted EBITDA of $1.615B-$1.645B (84%-85% margin). The company expects to open its platform to all advertisers in June, which should drive incremental customer growth.
Generated by AI · Q1 2026 results · Not investment advice
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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