Operational efficiency remains high, with free cash flow margins reaching 70.1% in 2026Q1 and operating cash flow consistently exceeding net income, as evidenced by an OCF/NI ratio of 2.00 in 2023Q4.
| Cash from Operations | 4.43B | 3.97B | 2.1B | 1.06B | 412.77M | 361.85M | 222.88M | 198.46M | 139.03M |
| Operating CF Margin % | - | 72.46% | 44.57% | 32.33% | 14.65% | 12.96% | 15.36% | 19.96% | 28.76% |
| Operating CF Growth % | 303.86% | 89.19% | 97.74% | 157.17% | 14.07% | 62.35% | 12.31% | 42.75% | - |
| Net Income | 3.96B | 3.43B | 1.58B | 356.71M | -192.95M | 35.34M | -125.93M | 119.04M | -260M |
| Depreciation & Amortization | 148.56M | 194.78M | 448.68M | 489.01M | 547.08M | 431.06M | 254.95M | 92.81M | 16.06M |
| Stock-Based Compensation | 232.51M | 210.42M | 369.37M | 363.11M | 191.61M | 133.18M | 62.39M | 10.22M | 5.46M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -59.28M | 54.78M | 50.73M | 61.36M | 159.46M | 46.57M | 98.52M | 7.59M | 396.38M |
| Working Capital Changes | 146.05M | 77.92M | -349.54M | -208.67M | -292.44M | -284.3M | -67.04M | -31.2M | -18.88M |
| Change in Receivables | -512.93M | -542.22M | -467.03M | -261.28M | -174.83M | -201.95M | -113.23M | -33.52M | -30.19M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 150.38M | 232.49M | 189.59M | 98.57M | 3.48M | 98.61M | 49.12M | 13.53M | 0 |
| Cash from Investing | 375.85M | 402.81M | -106.75M | -77.83M | -1.37B | -1.21B | -679.89M | -411.55M | -67.17M |
| Capital Expenditures | -28.32M | -28.32M | -4.78M | -4.25M | -662K | -1.39M | -3.24M | -3.36M | -1.4M |
| CapEx % of Revenue | 0.46% | 0.52% | 0.1% | 0.13% | 0.02% | 0.05% | 0.22% | 0.34% | 0.29% |
| Acquisitions | 0 | 407.3M | -25.55M | -63.9M | -1.35B | -1.21B | -674.65M | -404.2M | -65.94M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 405.66M | 44.01M | 558K | 8.25M | 41.31M | 12.01M | 0 | 0 | 173K |
| Cash from Financing | -2.6B | -2.59B | -1.75B | -1.56B | -526.85M | 3.11B | 377.86M | 333.16M | 1.64M |
| Debt Issued (Net) | -420.51M | -20.51M | 368.74M | -122.88M | -49.89M | 1.6B | 407.27M | 371.99M | -397.87M |
| Equity Issued (Net) | -2.15B | -2.17B | -981.3M | -1.15B | -338.88M | 1.75B | 7.55M | -11K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.17B | -2.19B | -981.3M | -1.15B | -338.88M | 0 | -1.77M | -11K | 0 |
| Other Financing | -29.82M | -405.94M | -1.14B | -286.31M | -138.07M | -232.95M | -36.97M | -38.82M | 399.51M |
| Net Change in Cash | 2.21B | 1.75B | 239.26M | -578.33M | -1.49B | 2.25B | -79.01M | 120.13M | 73.54M |
| Free Cash Flow | 4.4B | 3.94B | 2.09B | 1.06B | 412.11M | 360.46M | 219.64M | 195.1M | 137.63M |
| FCF Margin % | 71.42% | 71.94% | 44.47% | 32.2% | 14.63% | 12.91% | 15.14% | 19.63% | 28.47% |
| FCF Growth % | 74.01% | 88.27% | 98.08% | 156.55% | 14.33% | 64.11% | 12.58% | 41.76% | - |
| FCF per Share | 13.00 | 11.53 | 6.02 | 2.92 | 1.11 | 1.05 | 1.02 | 0.92 | 0.73 |
| FCF Conversion (FCF/Net Income) | 1.11x | 1.19x | 1.33x | 2.98x | -2.14x | 10.21x | -1.78x | 1.67x | -0.53x |
| Interest Paid | 196.4M | 198.79M | 270.62M | 248.83M | 165.96M | 76.69M | 59.36M | 62.28M | 0 |
| Taxes Paid | 189.25M | 194.84M | 67.33M | 75.43M | 86.26M | 90.62M | 12.67M | 30.47M | 0 |
Privacy Policy Data Sensitivity
Based on reported financial statements, AppLovin consistently demonstrates high-quality earnings, with operating cash flow exceeding net income in every quarter since 2023Q4, peaking at an OCF/NI ratio of 2.00 in the final quarter of 2023, which underscores the cash-generative nature of its software-centric business model.
The consistent premium of operating cash flow over net income suggests that the company's reported profitability is not reliant on aggressive accrual accounting. This trend indicates that the software platform's revenue recognition aligns closely with actual cash receipts, providing a high degree of confidence in the underlying earnings quality.
As reported in recent quarterly filings, AppLovin's free cash flow margins have expanded significantly from 36.7% in 2023Q4 to 70.1% in 2026Q1, a trajectory that appears to be driven by the high-margin software platform segment's ability to scale without proportional increases in capital expenditure requirements.
The rapid ascent in FCF margins suggests that the company has successfully transitioned into a capital-light phase where incremental revenue flows directly to the bottom line. Investors should monitor whether this margin expansion persists as the company continues to invest in AI infrastructure to maintain its competitive data advantage.
According to recent SEC filings, AppLovin has utilized its robust cash generation to fund significant share repurchases, including a $1.0B buyback in 2025Q1, signaling management's confidence in the company's intrinsic value and its ability to generate excess liquidity beyond what is required for operational reinvestment.
The heavy reliance on share repurchases as a primary capital allocation tool suggests that management may currently view internal organic growth and existing AI capabilities as the most efficient use of capital. While this provides immediate support to EPS, it warrants investigation into whether the company is potentially overlooking strategic M&A opportunities that could further solidify its market position.
Based on the provided cash flow data, working capital changes have fluctuated significantly, ranging from a $153.4M outflow in 2024Q4 to a $110.4M inflow in 2025Q3, which suggests that the timing of collections and payments remains sensitive to the underlying shifts in the mobile advertising ecosystem.
The volatility in working capital appears to be a byproduct of the company's dual-segment structure, where the timing of ad-tech settlements may not perfectly align with the legacy gaming segment's cash cycles. Analysts should interpret these swings as operational noise rather than a fundamental deterioration in the company's ability to manage its short-term liquidity.
Quick answers to the most common questions about buying APP stock.
AppLovin Corporation (APP) generated $3.97B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AppLovin Corporation (APP) generated $3.94B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
AppLovin Corporation (APP) spent $28.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, AppLovin Corporation (APP) spent $2.19B on share repurchases. This shows the company's commitment to returning capital to its equity investors.