Operating Profit Margin
since 2021
Calculation
AppLovin Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 75.75% | = | 100 | × | 4,151,914) | ÷ | 5,480,717) |
| Dec 31, 2024 | 39.78% | = | 100 | × | 1,873,459) | ÷ | 4,709,248) |
| Dec 31, 2023 | 19.74% | = | 100 | × | 648,207) | ÷ | 3,283,087) |
| Dec 31, 2022 | -1.70% | = | 100 | × | (47,791) | ÷ | 2,817,058) |
| Dec 31, 2021 | 5.37% | = | 100 | × | 150,016) | ÷ | 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 operating profit margin exhibited a significant and positive trend between 2021 and 2025. Initially, the company experienced a substantial decline in operating income, followed by a period of rapid improvement and expansion of profitability.
- Operating Profit Margin Trend
- In 2021, the operating profit margin stood at 5.37%. This decreased considerably in 2022, resulting in a negative margin of -1.70%. A dramatic turnaround occurred in 2023, with the margin increasing to 19.74%. This positive momentum continued through 2024, reaching 39.78%, and culminated in a substantial margin of 75.75% in 2025.
The increase in operating profit margin is directly correlated with the growth in income from operations. While revenue also increased over the period, the rate of growth in operating income significantly outpaced revenue growth, particularly in the later years. This suggests improvements in operational efficiency and cost management.
- Revenue and Operating Income Relationship
- Revenue increased from US$2,793,104 thousand in 2021 to US$5,480,717 thousand in 2025, representing a growth of approximately 96.6%. However, income from operations experienced a more substantial increase, moving from US$150,016 thousand in 2021 to US$4,151,914 thousand in 2025, a growth of approximately 2,667.9%. This disparity indicates a substantial improvement in the company’s ability to convert revenue into operating profit.
The negative operating profit margin in 2022 represents a period of operational challenges. However, the subsequent and sustained improvement in the operating profit margin demonstrates a successful recovery and a strengthening of the company’s financial performance.
- Key Observations
- The company demonstrated a remarkable ability to improve profitability. The operating profit margin’s trajectory suggests effective strategic adjustments and/or favorable market conditions that enabled a significant increase in operational efficiency. The substantial margin achieved in 2025 indicates a potentially strong competitive position and robust financial health.
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Comparison to Competitors
AppLovin Corp., operating profit margin, long-term trends, comparison to competitors
| AppLovin Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 75.75% | 14.68% | 36.63% | 28.17% | -3.05% | -1.29% | 26.14% | 45.62% | 30.80% | 31.59% | 13.48% | 19.01% | 13.74% | 12.97% | 4.91% |
| Dec 31, 2024 | 39.78% | 14.79% | 31.35% | 29.10% | -0.07% | 2.02% | 22.29% | 44.64% | 28.99% | 10.83% | 8.52% | 14.38% | 12.42% | 22.13% | 2.52% |
| Dec 31, 2023 | 19.74% | 13.74% | 34.26% | 30.59% | -8.48% | -1.57% | 21.86% | 41.77% | 26.21% | 5.39% | 5.62% | 3.29% | 8.49% | 21.72% | -3.57% |
| Dec 31, 2022 | -1.70% | 15.21% | 34.64% | 30.15% | -9.82% | -3.50% | 20.20% | 42.06% | 25.74% | -8.46% | -3.43% | 2.07% | 4.90% | 22.87% | -2.27% |
| Dec 31, 2021 | 5.37% | 15.08% | 36.76% | 26.07% | -10.58% | -1.86% | 25.95% | 41.59% | 37.58% | -26.66% | -7.15% | 2.14% | 4.36% | 17.48% | -5.76% |
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).