Applovin — Income Statement, Cash Flows & Balance Sheet
Is AppLovin profitable?
AppLovin's revenue has more than tripled in two years, driven entirely by its advertising technology business.
| Metric | 2023 | 2024 | 2025 | Change (2023–2025) |
|---|---|---|---|---|
| Revenue (continuing ops) | $1,841.8M | $3,224.1M | $5,480.7M | +198% |
| Total costs and expenses | $1,069.4M | $1,313.1M | $1,328.8M | +24% |
| Operating income | $772.4M | $1,911.0M | $4,151.9M | +437% |
| Operating margin | 41.9% | 59.3% | 75.8% | +33.9 pts |
Revenue has nearly tripled while costs have barely budged, creating extraordinary operating leverage. The operating margin of nearly 76% means AppLovin keeps three-quarters of every dollar of revenue as operating profit — a remarkably efficient business model.
Net income surged, though a large tax increase is worth watching.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net income from continuing ops | $1,589.5M | $3,433.2M | +116% |
| Provision for income taxes | $22.4M | $519.7M | +2,219% |
| Effective tax rate (continuing ops) | 1.4% | 13.1% | +11.7 pts |
The 2024 effective tax rate was unusually low due to large stock-based compensation deductions; 2025's rate is more normalised, which partly explains why net income growth lagged operating income growth. The discontinued Apps business added a net loss of roughly $99M in 2025.
Where does AppLovin's revenue come from?
AppLovin's advertising platform generates significant revenue from both the US and international markets, with both growing rapidly.
| Geography | 2023 | 2024 | 2025 | Change (2024–2025) |
|---|---|---|---|---|
| United States | $1,015.9M | $1,726.2M | $2,827.2M | +64% |
| Rest of world | $825.9M | $1,497.9M | $2,653.5M | +77% |
| Total | $1,841.8M | $3,224.1M | $5,480.7M | +70% |
International markets are growing slightly faster than the US and represent roughly half of total revenue, suggesting AppLovin's AI-driven ad platform has broad global appeal beyond its home market.
Does AppLovin generate cash?
AppLovin converts nearly all of its profits into cash, giving it enormous financial flexibility.
| Metric | 2023 | 2024 | 2025 | Change (2024–2025) |
|---|---|---|---|---|
| Operating cash flow | $1,061.5M | $2,099.0M | $3,971.1M | +89% |
| Capital expenditures (intangibles purchased) | $63.9M | $25.6M | $28.3M | +11% |
| Free cash flow (approx.) | ~$997.6M | ~$2,073.4M | ~$3,942.8M | +90% |
Free cash flow (operating cash flow minus intangible asset purchases, the primary reinvestment cost) nearly doubled year-over-year. The business requires very little capital to grow, which is a hallmark of high-quality software and technology companies.
AppLovin returned over $2.5 billion to shareholders in 2025 through buybacks.
| Activity | 2023 | 2024 | 2025 |
|---|---|---|---|
| Share repurchases | $1,153.6M | $981.3M | $2,197.9M |
| Net share settlement (tax withholding) | $246.4M | $1,143.5M | $382.9M |
| Total returned to shareholders | ~$1,400M | ~$2,125M | ~$2,581M |
The company has been consistently returning cash to shareholders, and as of year-end still had $3.3 billion authorised for future repurchases.
How strong is AppLovin's balance sheet?
Cash has surged to a record level, largely funded by the sale of the Apps business.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Cash and equivalents | $697.0M | $2,487.1M | +$1,790.1M |
| Accounts receivable, net | $1,283.3M | $1,819.4M | +$536.1M |
| Total current assets | $2,312.2M | $4,430.8M | +$2,118.6M |
The cash balance nearly quadrupled, reflecting both strong operating cash generation and the $430.6M cash proceeds from divesting the Apps business. The revolving credit facility of $1.0 billion remains entirely undrawn, providing additional liquidity if needed.
Debt is fixed and long-dated, posing no near-term repayment pressure.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Long-term debt | $3,509.0M | $3,513.0M | +$4.0M |
| Nearest debt maturity | — | 2029 | — |
| Cash vs. debt | $697.0M vs. $3,509M | $2,487.1M vs. $3,513M | Net debt improved by ~$1.8B |
All debt consists of fixed-rate senior notes with the earliest maturity in 2029, so there is no refinancing risk in the near term. With cash now covering roughly 71 cents of every dollar of debt — up from roughly 20 cents the prior year — the balance sheet has strengthened materially.