How AppLovin (APP) Makes Money: A Visual Guide
AppLovin (APP) generated $5.81B in revenue (TTM through Q4 2025), earning $3.33B in net profit (57.4% margin). Its largest revenue source is Advertising Segment (78.1% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
AppLovin (APP) Income Statement Flow
Frequently asked questions
How does AppLovin (APP) make money?
- AppLovin (APP) primarily makes money through Advertising Segment, which accounts for 78.1% of total revenue. For TTM through Q4 2025, AppLovin generated $5.81B in total revenue with a net profit margin of 57.4%.
What is AppLovin (APP) gross profit margin?
- AppLovin (APP) reported a gross profit margin of 86.5% for TTM through Q4 2025, equivalent to $5.02B in gross profit. This means AppLovin retains 86.5% of each revenue unit after direct costs of production.
What is AppLovin (APP) operating profit margin?
- AppLovin (APP) reported an operating profit margin of 68.5% for TTM through Q4 2025, equivalent to $3.98B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is AppLovin (APP) net profit margin?
- AppLovin (APP) reported a net profit margin of 57.4% for TTM through Q4 2025, equivalent to $3.33B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does AppLovin (APP) invest in R&D?
- AppLovin (APP) invested $293.02M in research and development in TTM through Q4 2025 (5.0% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does AppLovin (APP) spend on capital expenditures?
- AppLovin (APP) spent $28.32M on capital expenditures in TTM through Q4 2025 (0.5% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is AppLovin (APP) free cash flow?
- AppLovin (APP) generated $3.94B in free cash flow for TTM through Q4 2025 (67.9% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is AppLovin (APP) effective tax rate?
- AppLovin (APP) had an effective tax rate of 13% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q4 2025.