Analysis of Debt
Total Debt (Carrying Amount)
AppLovin Corp., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The carrying amount of total debt and finance lease liabilities exhibited a generally increasing trend over the analyzed period, though with some fluctuations. A significant increase in short-term debt in 2022 and 2023 contributed to this overall pattern. Analysis of the components reveals differing trends within the debt structure.
- Short-Term Debt
- Short-term debt demonstrated a substantial increase from US$25.81 million in 2021 to US$33.31 million in 2022. This was followed by a considerable jump to US$215.00 million in 2023. Values for 2024 and 2025 are not available, but the 2023 figure represents a significant shift in the company’s short-term financing strategy.
- Long-Term Debt
- Long-term debt remained relatively stable between 2021 and 2023, fluctuating around US$3.2 billion. A notable increase occurred in 2024, reaching US$3.509 billion, and remained consistent at US$3.513 billion in 2025. This suggests a potential restructuring or new long-term financing arrangements implemented in 2024.
- Finance Lease Liabilities
- Current finance lease liabilities showed modest fluctuations, decreasing from US$21.999 million in 2021 to US$17.481 million in 2025. Non-current finance lease liabilities, however, experienced a more pronounced increase from US$24.085 million in 2021 to US$144.174 million in 2023, before decreasing to US$105.172 million in 2025. This indicates a shift in the timing of lease obligation recognition.
- Total Debt Trend
- Total debt and finance lease liabilities increased from US$3.2737 billion in 2021 to US$3.2788 billion in 2022 and US$3.2848 billion in 2023. A more substantial increase was observed in 2024, reaching US$3.6652 billion, followed by a slight decrease to US$3.6356 billion in 2025. The increase in 2024 appears largely driven by the rise in long-term debt, while the short-term debt spike in 2023 also contributed to the overall increase.
The composition of the debt structure has shifted, with a notable increase in short-term debt in 2023 and a subsequent increase in long-term debt in 2024. Continued monitoring of these trends is warranted to assess the company’s debt management strategy and potential financial risk.
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Total Debt (Fair Value)
| Dec 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Senior Notes | 3,600,000) |
| Term loans under the Credit Agreement | —) |
| Revolving Credit Facility | —) |
| Finance lease liabilities | 122,653) |
| Total debt and finance lease liabilities (fair value) | 3,722,653) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.02 |
Based on: 10-K (reporting date: 2025-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance lease liabilities: 5.56%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.34% | 1,000,000) | 53,400) | |
| 5.56% | 1,000,000) | 55,600) | |
| 5.66% | 1,000,000) | 56,600) | |
| 6.07% | 550,000) | 33,385) | |
| 4.40% | 122,653) | 5,397) | |
| Total | 3,672,653) | 204,382) | |
| 5.56% | |||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 204,382 ÷ 3,672,653 = 5.56%