Stock Analysis on Net
Stock Analysis on Net

AppLovin Corp. (NASDAQ:APP)

$24.99

Common-Size Income Statement
Quarterly Data

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AppLovin Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Revenue
Cost of revenue
Gross profit
Sales and marketing
Research and development
General and administrative
Income (loss) from operations
Interest expense
Other income (expense), net
Other expense, net
Income (loss) before income taxes
(Provision for) benefit from income taxes
Net income (loss) from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net income (loss)
Net loss attributable to noncontrolling interest
Net income (loss) attributable to AppLovin

Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The financial trajectory over the analyzed period reflects a transition from volatility and moderate margins to a state of high operational efficiency and significant profitability. A profound shift in the cost structure is evident, characterized by a drastic reduction in both the cost of revenue and operating expenses as a percentage of total revenue.

Gross Margin Expansion
Gross profit margins exhibited significant volatility between 2021 and 2022, reaching a period low of 47.41% in December 2022 due to a peak in the cost of revenue at 52.59%. Subsequent quarters show a consistent and aggressive improvement in efficiency, with the cost of revenue falling to 11.05% by December 2025. This resulted in gross profit margins expanding to 88.95% by the end of 2025 and maintaining that level into early 2026.
Operational Expenditure Optimization
A substantial contraction in operating expenses relative to revenue is observed. Sales and marketing costs, which peaked at 46.39% in March 2022, declined sharply to 3.30% by March 2026. Research and development expenses followed a similar pattern, decreasing from a peak of 20.25% in March 2023 to 5.11% by March 2026. General and administrative expenses also trended downward, ending at 2.39% of revenue, indicating high operating leverage.
Operating and Net Profitability
Operating income margins transitioned from near-breakeven or negative territory in early 2022—reaching a low of -20.46% in March 2022—to a consistent upward trajectory. By March 2026, income from operations reached 78.15% of revenue. This operational strength translated to net income attributable to the company, which climbed from -1.74% in March 2021 to 65.44% by March 2026.
Non-Operating Items and Tax Impact
Interest expenses as a percentage of revenue showed a general downward trend, moving from 5.80% in early 2021 to 2.78% by March 2026. While discontinued operations introduced volatility into the net income figures during 2024 and 2025, these impacts were secondary to the overarching growth in margins from continuing operations.