AppLovin Corporation

The four forensic readings point in a broadly consistent direction, though each measures something different. The Beneish M-Score is -2.821, which is below the -1.78 threshold and therefore not in the elevated manipulation-risk zone. That is a screening result, not proof that the reported figures are accurate. The Altman Z″-Score is 7.86, which falls in the safe zone, meaning the model does not flag the balance sheet as distressed. The Piotroski F-Score is 8 of 8 computable signals, meaning all eight applicable checks on profitability, leverage, and operating efficiency were passed. Operating cash flow divided by net income is 1.19, meaning 2025 operating cash flow exceeded reported net income, which is a point in the company's favor. The Fog Index of 26.33 is above 18, the very hard to read band, so the MD&A demands considerable effort from a reader. Equity was negative in each year from 2018 through 2020, reached $2.13 billion at the 2025 year end, but fell from $1.26 billion in 2023 to $1.09 billion in 2024 before recovering. Readers may want to look at the risk factors on goodwill impairment, the multi-class structure governed by the Voting Agreement, and the company's status as a controlled company under Nasdaq rules. Readers may also want to examine the share repurchase risk factor, since the filings state that the anticipated long-term stockholder value of those programs may not be realized. Taken together, the numbers show strong reported growth and cash generation, while the filings themselves emphasize debt service, platform dependence, and governance concentration as the areas where a careful reader should slow down.

Catalyst.Revenue rose to $5.48 billion in 2025 from $4.71 billion in 2024, a 16.4% increase. Operating income climbed to $4.15 billion from $1.87 billion, net income reached $3.33 billion versus $1.58 billion, and operating cash flow was $3.97 billion versus $2.1 billion. The 10-Q MD&A ties the business forward to Axon AI, its advertising recommendation system, and to new advertising solutions and expansion into new markets. The excerpt provided does not include quarterly figures, so this summary relies on the annual results and the narrative in the filings.

Hidden risk.Long-term debt was $3.51 billion at both the 2024 and 2025 year ends, against $5.12 billion of total liabilities and $2.13 billion of equity. The 10-K risk factors list indebtedness and the ability to generate enough cash flow to meet significant debt service obligations. The filings also flag reliance on the Apple App Store and Google Play Store, changes to Apple's IDFA policy, concentration of revenue sources, and the absence of long-term client agreements. Readers may want to look at how these dependencies interact with the debt load.