AppLovin Corp., net profit margin, long-term trends, calculation

	Net profit margin	=	100	×	Net income (loss) attributable to AppLovin¹	÷	Revenue¹
Dec 31, 2025	60.83%	=	100	×	3,333,751)	÷	5,480,717)
Dec 31, 2024	33.55%	=	100	×	1,579,776)	÷	4,709,248)
Dec 31, 2023	10.87%	=	100	×	356,711)	÷	3,283,087)
Dec 31, 2022	-6.84%	=	100	×	(192,746)	÷	2,817,058)
Dec 31, 2021	1.27%	=	100	×	35,446)	÷	2,793,104)

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).

¹ US$ in thousands

The net profit margin exhibited significant fluctuations between 2021 and 2025. Initial profitability gave way to a substantial loss before a marked recovery and subsequent expansion. This analysis details the observed trends and potential implications.

Net Profit Margin Trend: In 2021, the net profit margin stood at 1.27%. This indicates a modest level of profitability, generating $1.27 in profit for every $100 of revenue. A substantial decline occurred in 2022, with the net profit margin falling to -6.84%, representing a net loss. The year 2023 saw a considerable improvement, with the net profit margin rising to 10.87%, signaling a return to profitability. This positive trend continued through 2024, with the net profit margin increasing significantly to 33.55%. The most recent year, 2025, demonstrated further expansion, reaching 60.83%, indicating a substantial increase in profitability.

The movement from a positive, albeit small, margin in 2021 to a loss in 2022 suggests a potential increase in costs or a decrease in revenue, or a combination of both. The subsequent recovery and strong growth in net profit margin from 2023 onwards indicate successful cost management, revenue growth, or a shift in business strategy that positively impacted profitability. The accelerating margin expansion in 2024 and 2025 suggests increasing operational efficiency and/or pricing power.

Relationship to Revenue: While the net profit margin fluctuated, revenue generally increased over the period. Revenue grew from US$2,793,104 thousand in 2021 to US$5,480,717 thousand in 2025. The substantial increase in net income attributable to AppLovin, coupled with the rising net profit margin, suggests that revenue growth was accompanied by effective cost control, leading to significantly improved profitability. The largest revenue increase occurred between 2023 and 2024, and this was also the period with the largest net profit margin increase.

The dramatic improvement in the net profit margin from 2022 to 2025 warrants further investigation to understand the underlying drivers. Factors such as economies of scale, changes in product mix, or successful implementation of cost-reduction initiatives could be contributing to this positive trend.

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AppLovin Corp., net profit margin, long-term trends, comparison to competitors

	AppLovin Corp.	Accenture PLC	Adobe Inc.	Cadence Design Systems Inc.	CrowdStrike Holdings Inc.	Datadog Inc.	International Business Machines Corp.	Intuit Inc.	Microsoft Corp.	Oracle Corp.	Palantir Technologies Inc.	Palo Alto Networks Inc.	Salesforce Inc.	ServiceNow Inc.	Synopsys Inc.	Workday Inc.
Dec 31, 2025	60.83%	11.02%	30.00%	20.94%	-0.49%	3.14%	15.69%	20.55%	36.15%	21.68%	36.31%	12.30%	16.35%	13.16%	18.89%	6.23%
Dec 31, 2024	33.55%	11.19%	25.85%	22.74%	2.92%	6.85%	9.60%	18.19%	35.96%	19.76%	16.13%	32.11%	11.87%	12.97%	36.94%	19.02%
Dec 31, 2023	10.87%	10.72%	27.97%	25.46%	-8.18%	2.28%	12.13%	16.59%	34.15%	17.02%	9.43%	6.38%	0.66%	19.30%	21.05%	-5.90%
Dec 31, 2022	-6.84%	11.17%	27.01%	23.84%	-16.18%	-2.99%	2.71%	16.23%	36.69%	15.83%	-19.61%	-4.85%	5.45%	4.49%	19.38%	0.57%
Dec 31, 2021	1.27%	11.69%	30.55%	23.29%	-10.59%	-2.02%	10.01%	21.41%	36.45%	33.96%	-33.75%	-11.72%	19.16%	3.90%	18.02%	-6.54%