AppLovin Corp. (NASDAQ:APP)

Total assets exhibited a fluctuating pattern over the five-year period. Initially decreasing from 2021 to 2023, they showed subsequent increases in 2024 and 2025. Adjusted total assets mirrored this trend, though the magnitude of change differed in certain periods.

Overall Trend

From December 31, 2021, to December 31, 2023, both total assets and adjusted total assets experienced a decline. Total assets decreased from US$6,163,579 thousand to US$5,359,187 thousand, representing a reduction of approximately 13.1%. Adjusted total assets fell from US$6,125,140 thousand to US$5,132,214 thousand, a decrease of roughly 15.8% over the same timeframe.

Recovery and Growth (2024-2025)

A reversal in the downward trend was observed between 2023 and 2025. Total assets increased to US$5,869,259 thousand in 2024 and further to US$7,259,610 thousand in 2025. Adjusted total assets followed suit, rising to US$5,432,946 thousand in 2024 and US$7,007,263 thousand in 2025. The growth from 2023 to 2025 represents an increase of approximately 35.3% for total assets and 36.5% for adjusted total assets.

Difference Between Total and Adjusted Assets

The difference between total assets and adjusted total assets remained relatively consistent throughout the period, generally ranging between US$38,439 thousand and US$252,347 thousand. The largest difference occurred in 2021, while the smallest was in 2025. This suggests that the adjustments made to total assets do not represent a substantial portion of the overall asset base.

The period between 2024 and 2025 demonstrates a significant recovery and expansion in the asset base, both in reported and adjusted figures. The consistent, though relatively small, difference between total and adjusted assets indicates that the nature of the adjustments remains stable over time.

Current liabilities exhibited volatility over the five-year period. Initially decreasing from 2021 to 2022, they subsequently increased each year through 2025. Adjusted current liabilities mirrored this pattern, though the magnitude of change differed. A notable divergence exists between the reported and adjusted values, suggesting the presence of items requiring reclassification or further scrutiny.

Overall Trend

Both current liabilities and adjusted current liabilities demonstrate an overall upward trend from 2022 to 2025. The increase is more pronounced in the later years of the period. Current liabilities grew from US$578,958 thousand in 2022 to US$1,333,788 thousand in 2025, representing a 130.4% increase. Adjusted current liabilities increased from US$514,940 thousand in 2022 to US$1,286,106 thousand in 2025, a 149.8% increase.

Year-over-Year Changes

From 2021 to 2022, current liabilities decreased by 10.2%, while adjusted current liabilities decreased by 10.8%. This suggests a consistent adjustment methodology. However, from 2022 to 2023, current liabilities increased by 63.3%, and adjusted current liabilities increased by 67.8%. The growth rate accelerated from 2023 to 2024, with current liabilities increasing by 11.9% and adjusted current liabilities increasing by 14.2%. The rate of increase continued from 2024 to 2025, with current liabilities increasing by 26.1% and adjusted current liabilities increasing by 30.3%.

Difference Between Reported and Adjusted Values

The difference between current liabilities and adjusted current liabilities varied over the period. In 2021, the difference was US$78,930 thousand. This difference decreased to US$64,018 thousand in 2022, then increased to US$78,559 thousand in 2023, US$69,839 thousand in 2024, and US$47,682 thousand in 2025. The narrowing gap in the most recent year suggests a potential change in the nature or amount of adjustments being made.

The consistent adjustments to current liabilities warrant further investigation to understand the underlying components and their impact on the company’s short-term financial position. The accelerating growth in both reported and adjusted current liabilities in the later years of the period should be monitored closely.

Total liabilities exhibited fluctuations over the five-year period. Initially, a slight decrease is noted from 2021 to 2022, followed by increases in subsequent years. Adjusted total liabilities mirrored this pattern, though the magnitudes of change differed.

Overall Trend

Both total liabilities and adjusted total liabilities generally increased from 2022 through 2025. The rate of increase accelerated in 2024 and 2025 for both metrics. From 2021 to 2025, total liabilities increased by approximately 27.1%, while adjusted total liabilities increased by approximately 28.7%.

Year-over-Year Changes

A decrease in total liabilities of approximately 2.0% was observed between 2021 and 2022. This was matched by a similar decrease of approximately 1.8% in adjusted total liabilities. Between 2022 and 2023, total liabilities increased by approximately 3.9%, while adjusted total liabilities increased by approximately 3.6%. The largest year-over-year increase in total liabilities occurred between 2023 and 2024, at approximately 16.3%, compared to an increase of approximately 17.8% in adjusted total liabilities. The rate of increase slowed slightly between 2024 and 2025, with total liabilities increasing by approximately 7.3% and adjusted total liabilities increasing by approximately 6.7%.

Difference Between Metrics

The difference between total liabilities and adjusted total liabilities remained relatively consistent throughout the period, ranging from approximately US$78,930 in 2021 to approximately US$47,682 in 2025. This suggests that the adjustments made to total liabilities are systematic and do not represent a significant shift in the overall liability structure. The adjustments consistently resulted in a lower reported liability figure.

The consistent pattern of adjustments indicates a recurring need to refine the initially reported total liabilities. The increasing trend in both reported and adjusted liabilities warrants further investigation to understand the underlying drivers of this growth.

Stockholders’ equity exhibited volatility over the five-year period. Initially decreasing from 2021 to 2023, it experienced a substantial increase in 2025. Adjusted stockholders’ equity mirrored this trend, though with differing magnitudes of change.

Overall Trend

Both stockholders’ equity and adjusted stockholders’ equity demonstrate a general decline from 2021 through 2024, followed by a significant recovery in 2025. The decline from 2021 to 2024 is more pronounced for adjusted stockholders’ equity.

Magnitude of Change - Stockholders’ Equity

Stockholders’ equity decreased from US$2,138,090 thousand in 2021 to US$1,256,329 thousand in 2023, representing a reduction of approximately 41.2%. A further decrease to US$1,089,818 thousand was observed in 2024. However, a substantial increase to US$2,134,671 thousand occurred in 2025, nearly recovering to the 2021 level.

Magnitude of Change - Adjusted Stockholders’ Equity

Adjusted stockholders’ equity decreased from US$2,178,782 thousand in 2021 to US$1,107,915 thousand in 2023, a decrease of approximately 49.2%. The decline continued in 2024, reaching US$723,344 thousand. A significant recovery was then noted in 2025, with adjusted stockholders’ equity rising to US$1,930,006 thousand.

Difference Between Equity Measures

The difference between stockholders’ equity and adjusted stockholders’ equity varied throughout the period. In 2021, adjusted stockholders’ equity exceeded reported stockholders’ equity by US$40,692 thousand. This difference widened in subsequent years, reaching a maximum of US$383,314 thousand in 2024, before narrowing in 2025 to US$4,665 thousand. This suggests increasing adjustments were made to stockholders’ equity from 2021 to 2024, and then decreased in 2025.

The substantial recovery in both equity measures in 2025 warrants further investigation to understand the underlying drivers of this change. The consistent difference between the two equity figures indicates the presence of ongoing adjustments impacting the reported value of stockholders’ equity.

The financial information reveals trends in reported and adjusted capital structures over a five-year period. Total reported debt exhibited a modest increase from 2021 to 2024, peaking at US$3,665,212 thousand, before decreasing slightly in 2025. Stockholders’ equity demonstrated a consistent decline from 2021 through 2024, reaching a low of US$1,089,818 thousand, followed by a substantial recovery in 2025. Consequently, total reported capital decreased from 2021 to 2023, then increased in 2024 before rising significantly in 2025.

Debt Trends

Adjusted total debt mirrored the trend of reported debt, increasing from 2021 to 2024 and decreasing slightly in 2025. The difference between reported and adjusted debt remained relatively stable throughout the period, suggesting consistent application of adjustments. The magnitude of the adjustments to debt was approximately US$80-90 thousand across the period.

Equity Trends

Adjusted stockholders’ equity followed a similar pattern to reported equity, with a decline from 2021 to 2024 and a significant increase in 2025. However, the magnitude of the decline was more pronounced in the adjusted figures. The adjustments to stockholders’ equity were more substantial than those to debt, varying from approximately US$40 thousand to over US$300 thousand annually. This suggests that the adjustments significantly impact the reported equity position.

Capital Structure Changes

Adjusted total capital exhibited a similar trajectory to total reported capital, decreasing from 2021 to 2023, increasing in 2024, and then experiencing a substantial rise in 2025. The adjusted total capital consistently exceeded the reported total capital throughout the period, indicating that the adjustments generally increased the overall capital figure. The difference between adjusted and reported total capital widened from approximately US$80 thousand in 2021 to over US$20 thousand in 2025.

The substantial recovery in both reported and adjusted stockholders’ equity in 2025 is a notable observation, potentially indicating a significant positive event or restructuring. The consistent adjustments to both debt and equity suggest a recurring accounting treatment or valuation methodology impacting the reported figures. Further investigation into the nature of these adjustments would be necessary to fully understand their implications.

Revenue and adjusted revenue both demonstrate a consistent upward trend over the five-year period. While both metrics move in the same direction, a slight divergence exists between them, indicating adjustments are consistently made to reported revenue figures.

Overall Trend

Both revenue and adjusted revenue increased year-over-year from 2021 to 2025. Revenue grew from US$2,793,104 thousand in 2021 to US$5,480,717 thousand in 2025, representing a substantial overall increase. Adjusted revenue followed a similar pattern, rising from US$2,785,148 thousand to US$5,491,346 thousand over the same period.

Year-over-Year Growth

The growth rate appears to accelerate over time. The increase from 2021 to 2022 was relatively modest for both metrics. However, the growth from 2022 to 2023, and particularly from 2023 to 2024, was more pronounced. The growth rate from 2024 to 2025 appears to moderate slightly, but remains positive.

Revenue Adjustments

Adjustments to revenue are consistently present in each year. The difference between reported revenue and adjusted revenue is relatively small in absolute terms, but consistently reduces the reported figure. In 2021, the adjustment was US$7,956 thousand. This difference increased to US$8,720 thousand in 2022, US$14,459 thousand in 2023, US$8,720 thousand in 2024, and US$9,371 thousand in 2025. The magnitude of the adjustment does not appear to have a consistent relationship to the overall revenue amount.

The consistent application of revenue adjustments suggests a systematic process for refining the initial revenue recognition. Further investigation into the nature of these adjustments would be necessary to understand their impact on the company’s financial performance and the underlying reasons for the adjustments.

The reported net income attributable to AppLovin demonstrates significant volatility over the five-year period. Initially positive in 2021, it transitioned to a substantial loss in 2022 before recovering and exhibiting strong growth in subsequent years. A contrasting pattern is observed in adjusted net income, which begins with a loss and follows a similar trajectory of recovery and growth, though generally remaining below the reported net income figures.

Net Income Trend

Net income attributable to AppLovin was US$35.446 million in 2021. This decreased dramatically to a loss of US$-192.746 million in 2022. A substantial recovery occurred in 2023, with net income reaching US$356.711 million, followed by further increases to US$1,579.776 million in 2024 and US$3,333.751 million in 2025. This represents a considerable upward trend following the 2022 downturn.

Adjusted Net Income Trend

Adjusted net income began at a loss of US$-84.436 million in 2021. The loss widened considerably in 2022 to US$-347.956 million. Similar to reported net income, 2023 saw a recovery, with adjusted net income reaching US$306.988 million. Growth continued in 2024 to US$1,337.159 million and further to US$3,493.617 million in 2025. While mirroring the overall trend of reported net income, the adjusted figures are consistently lower than the reported net income.

Relationship Between Reported and Adjusted Net Income

In 2021, reported net income significantly exceeded adjusted net income. This difference widened in 2022, with reported net income showing a large loss while adjusted net income showed an even larger loss. From 2023 onwards, both metrics show positive values, but the gap between reported and adjusted net income persists, with reported net income consistently higher. This suggests the presence of items impacting reported net income that are being excluded in the adjusted calculation.

The substantial fluctuations in both reported and adjusted net income suggest the company’s profitability is sensitive to underlying factors. The consistent difference between the two metrics warrants further investigation into the nature of the adjustments being made to reported income.