AppLovin Corporation stock research
FY2026 Q1
AppLovin (APP) Gross Margin & Quarterly History
Explore AppLovin Corporation (APP) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin remained stable relative to the preceding quarter and improved from the year-ago period, reflecting a higher proportion of revenue converted into gross profit.
- The strongest observable driver is the sustained gross margin at the prior quarter's level, which remains above the year-ago figure, indicating consistent conversion efficiency from revenue to gross profit despite higher cost of revenue in absolute terms.
- Compared to the immediately preceding quarter, gross margin was stable, while revenue and gross profit were both higher. Versus the same quarter one year earlier, gross margin improved, supported by higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.9%
Gross profit
$1.6B
Revenue
$1.8B
Cost of revenue
$203.6M
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+2.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $1.3B | $1.1B | $155.1M | 87.7% |
| Sep 30, 2025 | $1.4B | $1.2B | $174.9M | 87.6% |
| Dec 31, 2025 | $1.7B | $1.5B | $183.5M | 88.9% |
| Mar 31, 2026 | $1.8B | $1.6B | $203.6M | 88.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.0 pts
Year-over-year change
Mar 31, 2025
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the sustained gross margin at the prior quarter's level, which remains above the year-ago figure, indicating consistent conversion efficiency from revenue to gross profit despite higher cost of revenue in absolute terms.
Compared to the immediately preceding quarter, gross margin was stable, while revenue and gross profit were both higher. Versus the same quarter one year earlier, gross margin improved, supported by higher revenue and gross profit.
Monitor the trend in cost of revenue relative to revenue, as its growth could influence gross margin stability going forward.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| AppLovin Corporation (APP) | 88.9% |