Common-Size Income Statement
Quarterly Data
Paying user area
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AppLovin Corp., common-size consolidated income statement (quarterly data)
Based on: 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 common-size income statement reveals significant fluctuations in profitability and cost structure over the observed period. Revenue is consistently represented as 100% by definition. A notable trend is the increasing gross profit margin from 63.06% in March 2021 to 88.93% in September 2025, indicating improved efficiency in managing the cost of revenue.
- Cost of Revenue
- Cost of revenue as a percentage of revenue decreased substantially over the period, moving from -36.94% in March 2021 to -11.07% in September 2025. This decline suggests improved cost management or a shift in revenue mix towards higher-margin products or services. The most dramatic decrease occurred between December 2021 (-52.59%) and March 2024 (-27.80%).
- Sales and Marketing
- Sales and marketing expenses initially represented a large portion of revenue, peaking at -43.97% in March 2021. These expenses decreased consistently to -2.94% in September 2025, suggesting increased marketing efficiency or a reduction in marketing spend relative to revenue growth. The decline was particularly pronounced between March 2021 and June 2024.
- Research and Development
- Research and development expenses were relatively stable in the earlier periods, around -10% to -15% of revenue. They increased to a peak of -20.25% in March 2023 before declining to -4.96% in September 2025. This suggests a period of increased investment in innovation followed by a potential scaling back or more efficient allocation of R&D resources.
- Operating Income
- Income from operations exhibited considerable volatility. It started at 1.90% in March 2021, rose to a peak of 28.27% in September 2023, and then settled at 76.92% in September 2025. The significant improvement in operating income is a key indicator of improved overall financial performance. The negative value in December 2022 (-3.19%) represents a period of operating loss.
- Interest Expense
- Interest expense remained a consistent, though decreasing, percentage of revenue, starting at -5.80% in March 2021 and declining to -3.09% in September 2025. This suggests a reduction in debt or more favorable borrowing terms.
- Net Income
- Net income followed a similar pattern to operating income, with significant fluctuations. It began at -1.75% in March 2021, reached a high of 66.48% in September 2025, and experienced a loss in several periods, most notably December 2022 (-11.32%). The inclusion of income from discontinued operations in June 2025 (3.79%) positively impacted net income for that period. The overall trend indicates a substantial improvement in net profitability over the analyzed timeframe.
The company experienced a period of significant improvement in profitability, particularly in the later quarters. The reduction in cost of revenue and sales and marketing expenses, coupled with increased gross profit margins, contributed to this positive trend. While research and development expenses fluctuated, the overall financial performance demonstrates a strengthening position.