AppLovin Corporation (APP)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach AppLovin as a business first: it sells AI-powered advertising and in-app bidding tools, and the reported numbers are remarkable. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $1.8B, net income $1.2B, and diluted EPS $3.56. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.9B, net income $1.3B, and diluted EPS $3.76. For FY2025, ended 2025-12-31, revenue was $5.5B, net income $3.3B, and diluted EPS $9.75, up from FY2024, ended 2024-12-31, when revenue was $3.2B, net income $1.6B, and diluted EPS $4.53. FairStock calculates ROE of 203.69% and ROCE of 46.46%, showing high returns on capital, and trailing free cash flow of $4.5B, a 5.1% FCF yield. The Altman Z-score of 12.19 suggests low financial distress, though debt-to-equity is 1.11. The platform may have switching costs and network effects, but I cannot verify a durable moat from these figures alone. At the $260.74 close on 2026-10-26, FairStock's P/E is 20.06 and P/B is 27.65. FairStock's PEG of 0.37 and EV/EBITDA of 15.89 look reasonable if growth persists, but the Graham Number of $52.52 and margin of safety of -395.53% tell me the price is far above asset-based value. FairStock's Piotroski F-Score is 5/9, not a perfect signal. FairStock labels it a TURNAROUND because its rules see a return to profit after a loss within three years. I see a high-quality growth machine, but one priced for continued execution; the margin of safety is thin on Graham principles.

In plain English: AppLovin sells AI-powered advertising tools that help app developers manage and place ads. The business looks strong: sales and profits have grown quickly, cash flow is large, and recent quarterly filings show big profits. The stock price looks expensive compared with the company's accounting value, though it does not look extreme compared with current earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer