Applovin Corporation — Earnings Quality Grade C
APP · Communication Services
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 121 days, change -24 days YoY
AR growth 41.8% vs revenue growth 70.0%
Revenue 70.0%, CFFO 89.2%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 10.8% vs revenue 70.0%. Normal
SG&A/Gross Profit = 9.1%, excellent (<30%)
Gross margin 87.9%, change +4.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.19. Profits backed by cash
FCF $3.9B, FCF/NI = 1.18
Accruals ratio = -8.8%. Low accruals
Cash $2.5B covers 70% of debt $3.5B
Balance Sheet Health
Goodwill+Intangibles $1.9B = 91% of equity. Over 50%
Debt/EBITDA = 0.8x. Healthy
Other assets -68.1% vs revenue 70.0%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.45 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08