Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

AppLovin Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income (loss)	3,333,751)	1,579,776)	356,711)	(192,947)	35,338)
Amortization, depreciation and write-offs	194,778)	448,680)	489,008)	547,084)	431,063)
Goodwill impairment	188,943)	—)	—)	—)	—)
Stock-based compensation, excluding cash-settled awards	210,421)	369,367)	363,107)	191,612)	133,177)
Gain on divestiture, net of transaction costs	(106,229)	—)	—)	—)	—)
Impairment of investments	50,000)	—)	27,953)	—)	—)
Loss on settlement of debt	—)	28,375)	4,337)	—)	18,236)
Change in operating right-of-use assets	12,295)	12,689)	17,842)	17,107)	26,313)
Other	9,213)	9,663)	11,226)	142,356)	2,020)
Accounts receivable	(542,219)	(467,028)	(261,279)	(174,829)	(201,948)
Prepaid expenses and other assets	134,658)	(185,331)	(133,968)	(81,068)	(143,262)
Accounts payable	232,486)	189,585)	98,574)	3,479)	98,612)
Operating lease liabilities	(15,229)	(14,106)	(18,612)	(18,898)	(26,854)
Accrued and other liabilities	268,226)	127,341)	106,611)	(21,123)	(10,844)
Changes in operating assets and liabilities	77,922)	(349,539)	(208,674)	(292,439)	(284,296)
Adjustments to reconcile net income (koss) to net cash provided by operating activities	637,343)	519,235)	704,799)	605,720)	326,513)
Net cash provided by operating activities	3,971,094)	2,099,011)	1,061,510)	412,773)	361,851)
Purchase of intangible assets	(28,318)	(25,553)	(63,899)	(1,345,776)	(1,210,549)
Purchase of non-marketable equity securities	(20,178)	(76,983)	(17,934)	(66,342)	(15,000)
Proceeds from divestiture, net of cash divested	407,297)	—)	—)	—)	—)
Purchase of property and equipment	(473)	(4,776)	(4,246)	(662)	(1,390)
Other investing activities	100)	558)	8,250)	41,312)	12,009)
Net cash (used in) provided by investing activities	358,428)	(106,754)	(77,829)	(1,371,468)	(1,214,930)
Repurchases of common stock	(2,191,944)	(981,297)	(1,153,593)	(338,880)	—)
Payments of withholding taxes related to net share settlement	(392,410)	(1,143,525)	(246,435)	(27,535)	—)
Principal repayments of debt	(200,000)	(4,225,223)	(497,994)	(25,810)	(719,810)
Payments of deferred acquisition costs	—)	—)	(33,903)	(124,184)	(234,068)
Principal payments of finance leases	(18,669)	(20,875)	(20,170)	(24,083)	(15,271)
Payments of licensed asset obligation	(13,532)	—)	(27,110)	(17,374)	(17,970)
Payments of debt issuance cost	(1,843)	(35,563)	(4,655)	—)	(14,941)
Proceeds from issuance of debt	200,000)	4,614,841)	395,281)	—)	2,344,000)
Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares	25,329)	41,798)	25,788)	31,018)	34,033)
Proceeds from issuance of common stock in initial public offering, net of issuance costs as adjusted for cost reimbursement	—)	—)	—)	—)	1,745,228)
Payments of related party notes	—)	—)	—)	—)	(11,655)
Net cash provided by (used in) financing activities	(2,593,069)	(1,749,844)	(1,562,791)	(526,848)	3,109,546)
Effect of foreign exchange rate on cash and cash equivalents	9,232)	(3,154)	778)	(4,477)	(3,198)
Net increase (decrease) in cash and cash equivalents, including cash classified within current assets of discontinued operations	1,745,685)	239,259)	(578,332)	(1,490,020)	2,253,269)
Net decrease in cash classified within current assets of discontinued operations	44,381)	—)	—)	—)	—)
Net increase (decrease) in cash and cash equivalents	1,790,066)	239,259)	(578,332)	(1,490,020)	2,253,269)
Cash and cash equivalents at beginning of the period	697,030)	502,152)	1,080,484)	2,570,504)	317,235)
Cash and cash equivalents at end of the period	2,487,096)	741,411)	502,152)	1,080,484)	2,570,504)

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 company demonstrates a volatile financial performance over the observed period. Net income exhibits significant fluctuations, transitioning from positive values in 2021 and 2023 to a substantial loss in 2022, followed by considerable gains in 2023, 2024, and 2025. Operating cash flow generally follows an upward trend, although it is influenced by the net income volatility. Investing and financing activities show considerable shifts, impacting overall cash position.

Operating Activities: Net cash provided by operating activities increased substantially from US$361.851 thousand in 2021 to US$3,971.094 thousand in 2025. This growth is correlated with the improvement in net income, particularly from 2022 onwards. Adjustments to reconcile net income to net cash provided by operating activities remained relatively stable, fluctuating between US$519.235 thousand and US$704.799 thousand. Changes in operating assets and liabilities were initially negative, becoming positive in 2025, indicating improved working capital management in the latter year.
Investing Activities: Investing activities consistently represent a net cash outflow, although the magnitude varies. The largest outflow occurred in 2021 and 2022, primarily driven by the purchase of intangible assets. While the purchase of intangible assets decreased significantly in subsequent years, it remained a substantial cash drain. Proceeds from divestiture contributed positively to cash flow in 2025. Overall, net cash used in investing activities decreased from US$1,214.930 thousand in 2021 to US$358.428 thousand in 2025.
Financing Activities: Financing activities demonstrate significant volatility. 2021 saw a substantial net cash inflow, largely due to proceeds from the issuance of debt and an initial public offering. Subsequent years experienced net cash outflows, driven by common stock repurchases, payments of withholding taxes related to net share settlement, and principal repayments of debt. The outflow from financing activities peaked in 2025 at US$2,593.069 thousand. Proceeds from debt issuance were a key source of cash inflow in 2021 and 2024.
Cash Position: The company’s cash and cash equivalents increased significantly in 2021, decreased in 2022 and 2023, and then increased substantially in 2024 and 2025, reaching US$2,487.096 thousand. This pattern reflects the combined impact of operating, investing, and financing activities. The effect of foreign exchange rate on cash and cash equivalents is relatively small, with a positive impact in 2025.
Non-Recurring Items: Several non-recurring items significantly impacted the financial statements. Goodwill impairment was not present in 2021 or 2022 but appeared in 2025. A gain on divestiture was recorded in 2025, while impairment of investments occurred in 2023 and 2025. These items contribute to the volatility observed in net income and cash flow.

In summary, the company experienced a period of fluctuating financial performance. While operating cash flow improved over time, significant cash outflows from investing and financing activities, coupled with non-recurring items, created a dynamic cash flow profile. The substantial increase in net income and operating cash flow in the later years suggests a potential stabilization and growth phase, but continued monitoring of financing and investment strategies is warranted.

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AppLovin Corp. (NASDAQ:APP)

Cash Flow Statement