AppLovin Corporation (APP) Stock Analysis & Winston Score

AppLovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; Adjust, an analytics platform that helps marketers grow their mobile apps with solutions for measuring, optimizing campaigns, and protecting user data;

Winston Score History

Politician Trades

39 trades / 12mo

22 Congressional buys and 17 sells on APP in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+20.8% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+84.2% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$227M/ year

↓ Declining (-40% vs prior year)

4.1% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

27.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$2.5B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

AppLovin Corporation is a rare growth stock that's already generating positive cash flow while growing at 21%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 342.8M (2021) → 342.0M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

88.9%

Premium pricing power — 88.9% gross margin

Operating Margin

76.9%

Excellent — 76.9% operating margin

ROCE

22.5%

Exceptional — 22.5% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales YoY

+46.0%

Fast-growing sales (46.0% YoY)

EPS YoY

+110.5%

Earnings growing fast (110.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

119%

Turns 119% of profit into real cash

FCF Margin

67.9%

Converts sales into free cash efficiently (67.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

1.66

Elevated debt (1.66)

Interest Cover

19.20x

Comfortably covers interest (19.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

43.1x

Pricey — P/E 43.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+26.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (43.1 → 16.8)

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Dividends

Not applicable for this business.

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