How does AppLovin (APP) make money?

AppLovin (APP) generates revenue primarily from Reportable Segment, which accounted for 100% of total revenue in TTM through Q1 2026. The company reported $6.16B in revenue and converted 64.3% of it into net profit, equivalent to roughly $3.96B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of AppLovin (APP)?

AppLovin (APP) reported a gross profit margin of 88.4% in TTM through Q1 2026, equivalent to $5.45B in gross profit on $6.16B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of AppLovin (APP)?

AppLovin (APP) reported an operating profit margin of 77.1% in TTM through Q1 2026, equivalent to $4.75B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of AppLovin (APP)?

AppLovin (APP) reported a net profit margin of 64.3% in TTM through Q1 2026, equivalent to $3.96B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is AppLovin (APP) profitable?

Yes. AppLovin (APP) reported $3.96B in net income for TTM through Q1 2026, with a net profit margin of 64.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does AppLovin (APP) invest in research and development?

AppLovin (APP) invested $264.21M in research and development during TTM through Q1 2026, roughly 4.3% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does AppLovin (APP) spend on capital expenditures?

AppLovin (APP) spent $28.32M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.5% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does AppLovin (APP) generate?

AppLovin (APP) generated $4.40B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 71.4%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of AppLovin (APP)?

AppLovin (APP) had an effective tax rate of 14.7% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

Where does AppLovin (APP) generate most of its revenue?

UNITED STATES is the largest geographic market for AppLovin (APP), accounting for 56.4% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How AppLovin Makes Money: 2026 Visual Revenue Map

AppLovin (APP) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 6, 2026).

AppLovin (APP) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for AppLovin (APP), TTM through Q1 2026
Region	Revenue (USD)	% of total
UNITED STATES	$2.91B	56.4%
Rest Of The World	$1.32B	25.5%
Non-US	$935.23M	18.1%
Total	$5.17B	100%

UNITED STATES
Rest Of The World
Non-US
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, AppLovin (APP) generated 56.4% of revenue from UNITED STATES, followed by Rest Of The World (25.5%) and Non-US (18.1%).

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