Common-Size Income Statement
Quarterly Data
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2021
- Price to Book Value (P/BV) since 2021
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AppLovin Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 reflects a profound transition from a high-expenditure growth phase to a high-margin, operationally lean model. This shift is characterized by aggressive gross margin expansion and a significant reduction in operating expenses relative to total revenue, resulting in a substantial increase in overall profitability.
- Gross Margin Performance
- A significant upward trend in gross profit is observed, particularly following a trough in late 2022. While gross margins fluctuated between 47% and 66% from 2021 through 2022, a sustained acceleration began in 2023. By 2025 and 2026, gross profit margins stabilized at a high plateau, peaking at 88.95%, indicating a substantial reduction in the cost of revenue as a percentage of total sales.
- Operating Expense Optimization
- Operational expenditures show a dramatic decline relative to revenue. Sales and marketing expenses, which initially represented as much as 43.97% of revenue, declined steadily to approximately 3.30% by mid-2026. Similarly, research and development spending decreased from peaks near 20% to a consistent range of 4% to 5%. General and administrative expenses also trended downward, moving from 7.11% to approximately 2.10%, demonstrating strong operating leverage.
- Operating Income and Profitability
- Operating income transitioned from volatility and intermittent losses in 2021 and 2022 to rapid growth. From an operating loss of 20.46% in March 2022, the margin improved to 78.15% by March 2026. This expansion in operating margin is directly correlated with the combined impact of higher gross profits and lower relative spending on sales, marketing, and development.
- Net Income and Tax Impact
- Net income attributable to the company mirrored the operational recovery, moving from negative percentages in early 2021 and 2022 to stable margins between 65% and 66% in the later periods. While interest expenses as a percentage of revenue decreased from a peak of 10.42% to 2.66%, the impact of income tax provisions became more pronounced in later periods, offsetting some of the gains in pre-tax income.
- Financial Cost Trends
- Interest expenses showed a general downward trend as a percentage of revenue over the analyzed period. This reduction suggests either a decrease in relative debt levels or a significant increase in the revenue base, which effectively diluted the impact of financing costs on the total income statement.