10-K 0001751008-26-000010 (2026-02-19) vs 10-K 0001751008-25-000018 (2025-02-27)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 23,051 |
25.6% |
| MD&A | Item 7 | 5,453 |
47.9% |
| Legal Proceedings | Item 3, via Note 6 – Commitments and Contingencies | 558 |
31.2% |
| Accounting Policies | Item 8, Note 2 – Summary of Significant Accounting Policies | 4,154 |
35.7% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 443 words changed in this paragraph; it is 39% similar to last year's version.
Our business and results of operations are and will continue to be impacted by industry factors that drive the overall performance and growth of the mobile app and advertising ecosystems. Mobile app developers, including AppLovin, developers rely on third-party platforms, such as the Apple App Store and Google Play Store, among others, to distribute games, apps, collect payments made for IAPs, in-app purchases, and target users with relevant advertising. We expect this to continue for the foreseeable future. These third-party platforms have significant market power and discretion to set platform fees, select which apps to promote, and decide how much consumer information to provide to advertising networks that enable our Advertising advertising solutions to target users with personalized and relevant advertising and allocate marketing campaigns in an efficient and cost-effective manner. Any changes made in to the policies of third-party these third party platforms could can drive rapid change across the mobile app and advertising ecosystems. For example, Both the Apple App Store and Google Play Store have made various changes to their policies in April 2021, Apple started implementing its application tracking transparency framework that, among other things, requires users' opt-in consent for certain types of tracking. While this transparency framework has not had a significant impact on our overall business, it may do so recent years, as further discussed in the future, section titled “Risk Factors–Risks Related to Our Business, Operations and Industry–-If third-party platforms change their policies in a way that harms our business, including the design and effectiveness of our advertising solutions, our business, financial condition, and results of operations could be adversely affected.” The mobile app and advertising ecosystems also continue to be subject to an evolving legal and regulatory landscape, including with respect to data protection, privacy, and AI. We must continue to innovate and stay ahead of developments in the effectiveness of our advertising practices and/or our ability to efficiently generate revenue and mobile app ecosystems in order for our Apps. We rely in part on Identifier for Advertisers ("IDFA") business to provide us with data that helps succeed and our Advertising solutions better market and monetize Apps. In light results of the IDFA and transparency changes, we made changes to our data collection practices. To the extent we are unable to utilize IDFA or a similar offering, or if the transparency changes and any related opt-in or other requirements result in decreases in the availability or utility of data relating to Apps, our Advertising solutions may not be as effective, we may not be able operations to continue to efficiently generate revenue for our Apps, and our revenue and results of operations may be harmed. Additionally, Apple implemented new requirements for consumer disclosures regarding privacy and data processing practices in December 2020, which has resulted in increased compliance requirements and could result in decreased usage of our Apps. Apple incorporated new SDK privacy controls into iOS 17, which was released in September 2023, including privacy manifests and signatures designed to allow app developers to outline the data practices for SDKs embedded in their apps, manage tracking domains within SDKs, and curb device fingerprinting by requiring app developers to select allowed reasons for using data received through certain APIs. In February 2022, Google announced its Privacy Sandbox initiative for Android, a multi-year effort expected to restrict tracking activity and limit advertisers' ability to collect app and user data across Android devices. In January 2024, Google commenced rolling out a Chrome feature, called Tracking Protection, which limits improve.
Source: Item 7, 10-K 0001751008-26-000010 vs Item 7, 10-K 0001751008-25-000018
Risk Factors 404 words changed in this paragraph; it is 49% similar to last year's version.
Further, children’s privacy continues to be a focus of enforcement activities and subjects our business to potential liability that could adversely affect our business, financial condition, or operating results. For example, enforcement of COPPA, which requires companies to obtain parental consent before collecting personal information from children known to be under the age of thirteen or from child-directed websites or online services, has increased in recent years. In addition, the GDPR, the CCPA, as modified by the CPRA, and other laws contain their own prohibitions and requirements relating to processing the personal information of children. There also may be various laws, regulations, industry standards, codes of conduct, or other actual or asserted obligations relating to children’s privacy to which we may be, or be asserted to be, subject, or that may otherwise impact our business and operations. For example, the United Kingdom’s Age Appropriate Design Code (“AADC”) is one such regulatory framework that has been adopted in the United Kingdom that focuses on online safety and protection of children’s privacy online, and similar frameworks are being considered in other jurisdictions. While our terms of use prohibit publishers and advertisers from using our services in connection with end users who qualify as a “child” under applicable laws or content exclusively designed for or exclusively directed to children under applicable laws and app store policies, and we take reasonable efforts to comply with applicable laws and regulations and certain other standards, we may in the future face claims under COPPA, the GDPR, the CCPA, the CPRA, or other laws, regulations, or other actual or asserted obligations relating to children’s privacy. Additionally, several jurisdictions have enacted or proposed laws imposing new privacy obligations related to health-related personal information beyond traditional medical privacy laws like the Health Insurance Portability and Accountability Act, which laws can broadly define consumer health data and in certain cases include private rights of action. Ongoing developments regarding laws and regulations concerning privacy, information security, data protection, consumer protection, advertising, and other factors that may be relevant to our business may increase compliance burdens, legal risks, and operational costs for us, our clients, and others in the advertising technology ecosystem. We endeavor to comply with applicable industry standards and are subject to the terms of our privacy-related obligations and commitments to users clients, end users, and third parties. We strive to comply with all applicable laws, policies, legal obligations, and certain industry codes of conduct relating to privacy and data protection, to the extent reasonably attainable. However, it is possible that these or other actual or asserted obligations relating to privacy, data protection, or information security may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules or our practices. It is also possible that laws, policies, legal obligations, or industry codes of conduct may be implemented, modified, or interpreted, interpreted in manners that could prevent us from offering services to categories of users, persons, such as residents of a certain jurisdiction, or may make it costlier or more difficult for us to do so. Any failure or perceived failure by us to comply with our terms of service use or privacy policy, or policy; with applicable laws, regulations, or legal, contractual, or other actual or asserted obligations to users clients or third parties, parties concerning privacy, information security, data protection, consumer protection, or protection of minors; or our privacy-related legal obligations, the matters discussed in this risk factor; or any compromise of security that results, or is perceived to result, in the unauthorized release or transfer of personal
Source: Item 1A, 10-K 0001751008-26-000010 vs Item 1A, 10-K 0001751008-25-000018
Accounting Policies 147 words changed in this paragraph; it is 41% similar to last year's version.
The Company’s performance obligation is to provide customers with access to the Advertising solutions, which facilitates the advertiser’s purchase of ad inventory from Publishers. The Company does not control the ad advertising inventory prior to its transfer to the advertiser, advertiser because the Company it does not have the substantive ability to direct the use of nor of, or obtain substantially all of the remaining benefits from from, the ad advertising inventory. The In addition, the Company is not primarily responsible for fulfillment. The Therefore, the Company is an agent as it relates to the sale of third-party advertising inventory in these arrangements and presents revenue on a net basis. The transaction price is the product of either the number of completions of agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit with the advertiser less consideration paid or payable to Publishers. The Company recognizes Advertising Revenue when the agreed upon action is completed or when the ad is displayed to users. The number of advertisements delivered and completions of agreed upon actions is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. inventory costs.
Source: Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001751008-26-000010 vs Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001751008-25-000018
Legal Proceedings 98 words changed in this paragraph; it is 55% similar to last year's version.
The Company records a liability for loss contingencies when it is probable that a loss has been incurred and the amount can be reasonably estimated. If it is determined that a loss is reasonably possible and the loss amount or range of loss can be reasonably estimated, the reasonably possible Company discloses the estimated loss is disclosed. or range of loss. The Company monitors legal matters and evaluates developments in legal matters that could affect the amount of liability that has been previously accrued, accrued amounts or related disclosures, or whether a previously unaccrued or undisclosed matter requires accrual or disclosure, and related reasonably possible losses disclosed, adjusts accruals and makes adjustments disclosures as appropriate. Significant judgment is required to determine Determining the likelihood of matters loss and the estimated amount or range of a loss related to such matters. Losses in connection with legal proceedings have not been material for any period presented. involves significant judgment.
Source: Item 3, via Note 6 – Commitments and Contingencies, 10-K 0001751008-26-000010 vs Item 3, via Note 5 – Commitments and Contingencies, 10-K 0001751008-25-000018
Every change, by type
Sentences and paragraphs of APP's Risk Factors and MD&A, 10-K 2026-02-19 against 10-K 2025-02-27.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
•the impact of tariffs recently imposed by the U.S. government and its trading partners in response, other possible tariffs or trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers;
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
A deterioration in macroeconomic conditions, whether in the United States, internationally, or globally, could create uncertainty and adversely affect advertising spending or costs related to our operations. Historically, consumer purchasing and advertising spending have each declined during economic downturns and periods of uncertainty regarding future economic prospects or when disposable income or consumer lending is lower. Uncertain economic conditions may impact advertiser spending in future periods and may also adversely affect our clients, which in turn may harm our business, financial condition, and results of operations. Economic and political relations between the U.S. and other countries continue to evolve rapidly, including with respect to tariff and other policies, and changing policies may adversely affect our business by harming advertising spending or increasing our costs.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
In addition, we have in the past chosen, and may in the future also choose, to divest certain businesses or product lines. For example, in June 2025, we sold our Apps business. As a result of this divestiture, we no longer generate Apps revenue and we may not achieve the desired strategic and financial benefits. Any future divestitures or similar transactions may, among other risks, result in reduced revenue, cause us to incur additional expenses, disrupt third party or employee relationships, and expose us to unanticipated or ongoing obligations and liabilities, including as a result of our indemnification obligations or any agreement to provide transition services.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
Harm to our brands and reputation can arise from many sources, including actions of our business partners, service disruptions or technical issues, or legal or regulatory scrutiny. Even allegations may harm our reputation and brands and cause the market price of our Class A common stock to decline. We have, from time to time in the past, and may in the future be, the target of incomplete, inaccurate, and misleading or false statements about our company and our business that could damage our reputation and brands, divert management attention and resources, and deter clients or potential clients from using our solutions. If we do not successfully maintain, protect or enhance our brand and reputation, our business could be materially and adversely affected.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
We transfer personal data relating to our employees, clients and their users from the European Economic Area (“EEA”), the United Kingdom, Switzerland, and other jurisdictions to the United States and other countries. Following the invalidation of the EU-U.S. and Swiss-U.S. Privacy Shield frameworks by the Court of Justice of the European Union in 2020 and the imposition of additional requirements regarding the use of standard contractual clauses (“SCCs”), cross-border data transfer mechanisms
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
have been subject to heightened regulatory scrutiny, evolving guidance, and legal challenge. The European Commission adopted updated SCCs in 2021, and the United Kingdom has implemented its own contractual transfer mechanisms, which have increased compliance complexity and costs. In July 2023, the European Commission adopted an adequacy decision for the EU-U.S. Data Privacy Framework (“EU-U.S. DPF”), and related frameworks for the United Kingdom and Switzerland subsequently became effective. We are certified under these frameworks, where applicable; however, they are subject to ongoing review and potential legal challenge and may be modified, suspended, or invalidated in the future. Regulators in certain European jurisdictions have also taken the position that specific data transfer practices, including the use of certain analytics tools, may result in unlawful transfers of personal data to the United States. If existing data transfer mechanisms are restricted or invalidated, or if additional measures are required, we and our business partners and service providers may need to implement alternative or supplemental safeguards, renegotiate contracts, or modify our operations, which could increase costs, limit our ability to process personal data, disrupt our advertising solutions or other offerings, and expose us and our customers to regulatory investigations or enforcement actions. Similar cross-border data transfer restrictions under other current or future laws such as Brazil’s General Data Protection Law and China’s Personal Information Protection Law may further increase compliance burdens and adversely affect our business, financial condition, and results of operations.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
Moreover, there are increasing restrictions in the United States on certain personal sensitive data transfers to certain foreign countries. The Department of Justice finalized a final rule implementing Executive Order 14117, effective April 8, 2025, which prohibits data transfer of personal identifiers, precise geolocation data, biometric identifiers, health data, and financial data over a certain bulk threshold to identified countries of concern (i.e., China, Hong Kong, Macau, Cuba, Iran, North Korea, Russia, and Venezuela). The rule also restricts data brokerage agreements, investment agreements, employment agreements, and vendor agreements involving such data and countries of concern. Violations of the rule may be punishable by criminal and/or civil sanctions and may result in exclusion from participation in federal and state programs. These data transfer restrictions may create operational challenges and legal risks for our business, particularly with regard to China, where we have operations.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedRisk Factors
Further, the enforceability of similar exclusive forum provisions in other companies’ organizational documents has been challenged in legal proceedings, and it is possible that a court of law may rule that these types of provisions are inapplicable or unenforceable if they are challenged in a proceeding or otherwise. In the event a court finds either exclusive forum provision
Read it in 10-K 2026-02-19 at sec.gov ↗
RemovedRisk Factors
•our reliance on third-party platforms to distribute our AppLovin Apps and collect revenue;
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
•our ability to launch or acquire new AppLovin Apps and successfully monetize or improve them and existing Apps;
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
•our ability to retain existing users or add new users cost-effectively, or if users decrease their level of engagement;
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
•our ability to increase in-app purchases ("IAPs"), respond to changes with respect to IAPs, and manage the economies in our AppLovin Apps;
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
•our ability to achieve or maintain profitability with increasing operating expenses;
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
Similarly, in February 2022, Google announced its Privacy Sandbox initiative for Android, a multi-year effort expected to restrict tracking activity and limit advertisers' ability to collect app and user data across Android devices. In January 2024, Google
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
•our ability to continue to increase user access to and engagement with our Apps;
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
•mobile app changes or inventory management decisions we may make that change the size, format, frequency, or relative prominence of advertisements displayed on our Apps;
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
Additionally, we also compete with businesses that develop online and mobile games and other mobile apps, which vary in size and include companies such as Activision Blizzard (Microsoft), Tencent, and Zynga (Take-Two Interactive), as well as other public and private companies, many of which are also our partners and clients. As we expand our global operations and mobile app offerings, we increasingly face competition from high-profile companies with significant online presences that may introduce new or expanded offerings, such as Apple, Facebook, Google, Microsoft, and Snap. In addition, other large companies that to date have not actively focused on mobile apps or gaming may decide to develop mobile apps or gaming offerings, such as Amazon’s games platform, or partner with other developers. Some of these current and potential competitors have significantly greater resources that can be used to develop, acquire, or brand additional mobile apps or gaming alternatives, and may have more diversified revenue sources than we do and therefore may be less severely affected by changes in consumer preferences, regulations, or other developments that may impact our business or industry.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
Further, as there are relatively low barriers to entry to develop and publish a mobile app, we expect new competitors to enter the market and existing competitors to allocate more resources towards developing and marketing competing games and apps. Because our mobile games are free-to-play, our Apps compete primarily on the basis of user experience rather than price. The proliferation of apps makes it difficult for us to differentiate ourselves from our competitors and compete for users and the success of our Apps will depend in part on our Advertising solutions continuing to provide effective marketing and monetization tools.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
General macroeconomic conditions, such as inflation, high interest rates, or a recession or economic slowdown in the United States or internationally, including those resulting from uncertainty in the global banking and financial services markets, political uncertainty and international conflicts around the world, such as between Russia and Ukraine and in the Middle East, as well as, friction between the United States and China, could create uncertainty and adversely affect discretionary consumer spending habits and preferences as well as advertising spending. Our revenue is driven in part by discretionary consumer spending habits and preferences, and by advertising spending patterns. Historically, consumer purchasing and advertising spending have each declined during economic downturns and periods of uncertainty regarding future economic prospects or when disposable income or consumer lending is lower. In certain periods in 2022, we experienced the impacts of the macroeconomic deterioration as advertisers more closely managed budgets and reduced overall spend, which resulted in slowed growth for our Advertising solutions. Uncertain economic conditions may impact advertiser spending in future periods and may also adversely affect our clients, which in turn may harm our business, financial condition, and results of operations. In addition, the economic conditions affecting the financial markets, and uncertainty in global economic conditions may result in a number of adverse effects including a low level of liquidity in domestic and global markets, volatility in credit, equity, and currencies and instability in the stock market. There could be a number of other follow-on effects from these economic developments on our business, including customer insolvencies, decreased demand for our marketing solutions; decreased customer ability to pay their accounts, and increased collections risk and defaults. We are particularly susceptible to market conditions and risks associated with the advertising ecosystem, including changes in user demographics, the availability and popularity of other forms
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
of entertainment, and critical reviews and public tastes and preferences, which may change rapidly and cannot necessarily be predicted.
Read it in 10-K 2025-02-27 at sec.gov ↗
RewordedRisk Factors
While our hedging strategy is designed to minimize the impact of increases in interest rates applicable to our variable rate debt, including our credit facility, there can be no guarantee that our hedging strategy will be effective, and we may experience credit-related losses in some circumstances.Upon Upon the occurrence of a change of control repurchase event (as defined in the indenture governing the Senior Notes), we will be required to repurchase the Senior Notes at the option of each holder.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Although While our terms of use prohibit publishers and advertisers from using our services in connection with end users who qualify as a “child” under applicable laws or content exclusively designed for or exclusively directed to children under applicable laws and app store policies, and we take reasonable efforts to comply with applicable laws and regulations and certain other standards, we may in the future face claims under COPPA, the GDPR, the CCPA, the CPRA, or other laws, regulations, or other actual or asserted obligations relating to children’s privacy.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Anti-corruption and anti-bribery laws have been enforced aggressively in recent years, are interpreted broadly and prohibit companies, their employees, and third party business partners, representatives, and agents from promising, authorizing, making or offering improper payments or other benefits, directly or indirectly, to government officials and others in the private sector in order to influence official action, direct business to any person, gain any improper advantage, or obtain or retain business.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
If issues arise with third-party platforms change their policies in a way that impact the visibility or availability of harms our Apps, our users’ ability to access our Apps or our ability to monetize our Apps, or otherwise impact business, including the design or and effectiveness of our Advertising advertising solutions, our business, financial condition, and results of operations could be adversely affected.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Enforcement For example, enforcement of COPPA, which requires companies to obtain parental consent before collecting personal information from children known to be under the age of thirteen or from child-directed websites or online services, has increased in recent years, and the FTC has proposed modifications to its rules implementing COPPA that, if implemented, may subject us to additional liability and require us to dedicate additional compliance resources and modify certain policies and practices. years.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
If such a disagreement were to occur, and our position were not sustained, we could be required to pay additional taxes, interest, and penalties, which could result in one-time tax charges, higher effective tax rates, reduced cash flows and lower overall profitability of our business, with some changes possibly affecting our tax obligations in future or past years.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
While our hedging strategy is designed to minimize the impact of increases in interest rates applicable to our variable rate debt, including our credit facility, there can be no guarantee that our hedging strategy will be effective, and we may experience credit-related losses in some circumstances.Upon the occurrence of a change of control repurchase event (as defined in the indenture governing the Senior Notes), we will be required to repurchase the Senior Notes at the option of each holder. circumstances.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
While we believe our lean culture allows this approach enhances efficiency and cost control, it may also expose us to move faster than other companies our size, a lean workforce could limit certain risks, such as limiting our ability to scale operations quickly in response to increased demand, develop new products or services in a timely manner, or effectively manage multiple initiatives simultaneously.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
Finally, In addition, a number of other countries and organizations organizations, such as the Organisation for Economic Cooperation and Development, Development ("the OECD"), have enacted changes to existing tax laws or new laws that could impact our tax obligations, including a framework that imposes a 15% global minimum tax, which has been implemented into the domestic laws of some jurisdictions in the European Union, effective non-U.S. jurisdictions, and is being considered for fiscal years beginning on or after December 31, 2023. implementation by other countries.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
We are involved in or may become involved in claims, suits, government investigations, including formal and informal inquiries or requests for information or audits from government authorities and regulators, and proceedings arising in the ordinary course of our business, including actions with respect to intellectual property claims, securities claims, privacy, data protection, consumer protection, competition or law enforcement matters, tax matters, labor and employment claims, commercial and acquisition-related claims, and other matters. matters in the United States, Europe, and around the world, especially as we continue to grow and expand our operations.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
If additional substantial modifications to our international structure or the way we operate our business are made, such as if future acquisitions or divestitures occur, if changes in domestic and international tax laws negatively impact the structure (such as the 15% global minimum tax, which has been implemented into the domestic laws of some jurisdictions), structure, if we do not operate our business consistent with the structure and applicable tax provisions, if we fail to achieve our revenue and profit goals, or if the international structure or our application of arm's-length principles to intercompany arrangements is successfully challenged by the U.S. or foreign tax authorities, our effective tax rate may increase, which could materially and adversely affect our financial condition and results of operations.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedRisk Factors
We receive, store, and process personal information and other data, including data relating to individuals and households, and we enable certain aspects of our users to share their personal information services involve sharing data with each other demand partners and with third parties, including within our Apps. service providers.
Read it in 10-K 2026-02-19 at sec.gov ↗
Quiet changesRisk Factors
In addition, we may need to issue significant amounts of equity or equity-linked consideration, which may would dilute our current stockholders’ ownership and could adversely affect the price of our Class A common stock.
Read it in 10-K 2026-02-19 at sec.gov ↗
Quiet changesRisk Factors
Our compliance and oversight efforts regarding privacy, data protection, and security will require significant time and attention from our management and board of directors.
Read it in 10-K 2026-02-19 at sec.gov ↗
Quiet changesRisk Factors
Factors that may be considered a change in circumstances, indicating a requirement to reevaluate whether our goodwill continues to be recoverable, include a significant decline in the market price of our Class A common stock and our market capitalization, slower growth rates in our industry, underperformance of certain assets, or other materially material and adverse events.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
On May 7, 2025, we, along with our subsidiaries Morocco, Inc. and AppLovin GmbH (collectively, the “Sellers”) entered into a Purchase Agreement (the “Agreement”) with Tripledot and its subsidiaries Eton Games Inc. ("Eton") and Tripledot Group Holdings Limited (collectively, with Tripledot, the “Purchasers”) relating to the sale of our Apps business. On June 30, 2025, we and Tripledot entered into an amendment to the Agreement to provide, among other things, that in lieu of the issuance of a secured promissory note by Eton to us or our designated affiliate to fund a portion of the full Cash Consideration (as defined in the Agreement), Tripledot may elect to pay such amount in cash.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
On June 30, 2025, we consummated the sale of the Apps business to the Purchasers for $400 million in cash, subject to closing adjustments, and equity consideration representing approximately 20% of Tripledot’s fully-diluted equity at the time of closing. No promissory note was issued as part of the transaction. Following the sale of the Apps business, we operate as a single operating and reportable segment. Results related to our Apps business are presented as discontinued operations in our consolidated financial statements. See Note 2—Summary of Significant Accounting Policies and Note 3 – Discontinued Operations of the Notes to consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
Net cash provided by (used in) investing activities $ 358,428 $ (106,754) $ (77,829)
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
We generate substantially all of our revenue from fees collected from advertisers spending on Axon Ads Manager, which are determined dynamically based on advertisers’ campaign goals. Revenue from other services was not material. Revenue does not include the results of our former Apps business, which is classified as discontinued operations.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
The following tables summarize our historical consolidated statement of operations:
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. We evaluated the provisions of OBBBA effective in 2025 and its impact on the consolidated financial statements was immaterial.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
The following table summarizes our cash flows for the periods indicated (all periods include cash flows from continuing and discontinued operations):
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
We account for investments under the equity method when we have the ability to exercise significant influence, but not control, over the financial and operating policies of an investee, unless the fair value option is elected. Equity method investments are initially recorded at cost and subsequently adjusted for our proportionate share of the investee’s net income or loss and the amortization of basis differences arising from the excess of investment cost over our share of the investee’s
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
underlying net assets. We record our share of the investee’s results and related basis difference amortization one quarter in arrears in other income (expense), net in our consolidated statements of operations.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
We evaluate equity method investments for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable and record an impairment loss when a decline in fair value below carrying value is determined to be other than temporary. Indicators of potential impairment include, among other factors, the investee’s financial results and operating trends, implied values from transactions involving the investee’s securities, the severity and duration of any decline in value, and our intent and ability to hold the investment. If an impairment is determined to be other than temporary, we determine the investment’s fair value and record an impairment charge for the difference between fair value and carrying value. Determining fair value, particularly for investments in privately held companies, requires significant judgment and the use of estimates and assumptions. Changes in these estimates and assumptions could affect the fair value determination and the amount of any impairment charges.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
In evaluating the exposure associated with various tax filing positions, we accrue an income tax liability when such positions do not meet the more-likely-than-not threshold for recognition. We consider changes in facts and circumstances, such as new regulations or recent judicial opinions, as well as the status of audit activities by taxing authorities.
Read it in 10-K 2026-02-19 at sec.gov ↗
AddedMD&A
While we believe we have adequately reserved for our uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes and the effective tax rate in the period in which such determination is made.
Read it in 10-K 2026-02-19 at sec.gov ↗
RemovedMD&A
For 2024, our revenue grew 43% year-over-year from 2023, from $3.3 billion in 2023 to $4.7 billion in 2024. For 2023, our revenue grew 17% year-over-year from 2022, from $2.8 billion in 2022 to $3.3 billion in 2023. We generated net income of $1.6 billion in 2024, net income of $356.7 million in 2023, and net loss of $192.9 million in 2022. We generated Adjusted EBITDA of $2.7 billion, $1.5 billion, and $1.1 billion in 2024, 2023, and 2022, respectively. Additionally, we have generated strong cash flows, with net cash provided by operating activities of $2.1 billion, $1.1 billion, and $412.8 million in 2024, 2023, and 2022, respectively. Given our strong financial position, we have been able to reinvest in our expansion and growth, and repurchase and withhold shares of our Class A common stock. See the section titled “Non-GAAP Financial Measures” for a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated in accordance with GAAP.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
On February 12, 2025, we announced that we entered into a term sheet for the sale of our mobile gaming business to a privately held company (the “Acquirer”) for total consideration of $900.0 million (the “Term Sheet”). The Term Sheet provides for the total consideration to consist of $400.0 million in shares of the Acquirer’s common equity and $500.0 million in cash, subject to customary purchase price adjustments. The Term Sheet also provides that the Acquirer will borrow up to $250.0 million of the cash portion of the total consideration and that, if the Acquirer is unable to obtain such financing, we agree to provide financing in such amount to the Acquirer through the issuance of a promissory note. The Term Sheet is non-binding, except with respect to an agreement by the parties to use commercially reasonable best efforts in good faith to negotiate and finalize definitive agreements for the proposed transaction, a prohibition on us from engaging in discussions or negotiations with any third party other than the Acquirer regarding the sale of our mobile gaming business for a specified period, and customary terms such as fees and expenses, governing law, and termination.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
We report our operating results through two reportable segments: Advertising and Apps.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Our CODM, the Chief Executive Officer, evaluates performance of each segment based on several factors, of which the financial measures are segment revenue and segment adjusted EBITDA, as defined in Note 14 to our consolidated financial statements.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
The Advertising and Apps segments provide a view into the organization of our business and generate revenue as follows:
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Apps Revenue is generated when a user of one of our Apps makes an in-app purchase (“IAP") and when clients purchase the digital advertising inventory of our portfolio of Apps ("IAA"). We are able to grow our Apps Revenue by adding more apps to our Apps portfolio and increasing engagement on our existing Apps.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Our Apps are generally free-to-play mobile games and generate IAP Revenue through IAPs. IAPs consist of virtual goods used to enhance gameplay, accelerate access to certain features or levels, and augment other mobile game progression opportunities for the user. IAPs drive more engagement and better economics from our Apps. The vast majority of our IAP Revenue flows through two app stores, Apple App Store and Google Play, which charge us a standard commission on IAPs. IAP Revenue represented 68% of total Apps Revenue for the twelve months ended December 31, 2024.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
During the twelve months ended December 31, 2024, we had an average of 1.6 million Monthly Active Payers ("MAPs") across our portfolio of Apps. Over that period, we had an Average Revenue Per Monthly Active Payer ("ARPMAP") of $51. See “Key Metrics” below for additional information on how we calculate MAPs and ARPMAP.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
IAA clients that purchase advertising inventory from our Apps are able to target highly relevant users from our diverse and global portfolio of over 200 mobile games. Our clients leverage a broad set of high-performing mobile ad formats, including playable and rewarded video, and are able to match these ads with relevant users resulting in a better return on their advertising
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
spend. By increasing the number of users and their engagement, as well as better matching ads with the appropriate target audience, we are able to increase our revenue from IAA clients that purchase advertising inventory from our Apps. IAA Revenue represented 32% of total Apps Revenue for the twelve months ended December 31, 2024.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
We review the following key metrics on a regular basis in order to evaluate the health of our business, identify trends affecting our performance, prepare financial projections, and make strategic decisions.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Monthly Active Payers ("MAPs"). We define a MAP as a unique mobile device active on one of our Apps in a month that completed at least one IAP during that time period. A consumer who makes IAPs within two separate Apps on the same mobile device in a monthly period will be counted as two MAPs. MAPs for a particular time period longer than one month are the average MAPs for each month during that period. We estimate the number of MAPs by aggregating certain data from third-party attribution partners.
Read it in 10-K 2025-02-27 at sec.gov ↗
RewordedMD&A
Net cash provided by operating activities was $2.1 $4.0 billion for 2024, 2025, primarily consisting of $1.6 $3.3 billion of net income, adjusted for certain non-cash items, such as $448.7 $210.4 million of stock-based compensation, $194.8 million of amortization, depreciation and write-offs, $369.4 $188.9 million of stock-based compensation expense, $28.4 goodwill impairment, $50.0 million of loss on settlement impairment of debt, $12.7 million of change in operating right of use asset, partially offset by non-marketable equity securities, and a net decrease increase in the operating assets and liabilities of $349.5 $77.9 million, partially offset by a gain from the divestiture of our Apps business, net of transaction costs, of $106.2 million.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Interest expense and loss on settlement of debt (7)% (8)% (6)% (4)% (10)% (15)% Other income, net —% 1% —% 1% Total other expense (6)% (8)% (6)% expense, net (4)% (9)% (15)% Income (loss) before income taxes 33% 12% (7)% 72% 50% 27% Provision for (benefit from) income taxes —% 9% 1% —% 2% Net income (loss) 34% 11% (7)% from continuing operations 63% 49% 25% Loss from discontinued operations, net of income taxes (2)% —% (5)% Net income 61% 49% 19%
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
We define Adjusted EBITDA for a particular period as net income (loss) before adjusted for loss from discontinued operations, net of income taxes, interest expense and loss on settlement of debt, other income, net (excluding certain recurring items), provision for (benefit from) income taxes, amortization, depreciation and write-offs and as further adjusted for stock-based compensation compensation, transaction-related expense, acquisition-related expense and transaction bonus, publisher bonuses, MoPub acquisition transition services, restructuring costs, loss on disposal of long-lived assets, and non-operating foreign exchange (gain) losses. loss, as well as certain other items that we believe are not reflective of our core operating performance.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The improvement in cash flows from operating activities during 2024 2025 compared to 2023 2024 was primarily due to an increase in cash collection from our customers driven by the increase in revenue, revenue growth and a decrease of interest payments on debt as a result of lower interest rates, partially offset by higher cash operating expenses, expenses primarily related to data center and payroll related costs, associated with operating our network infrastructure, as well as higher interest income tax payments due to an increase of debt. revenue growth.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
In December 2024, we entered into an unsecured credit agreement (the "2024 Credit Agreement"), which provided for a $1.0 billion Our unsecured revolving credit facility maturing under the 2024 Credit Agreement provides for up to $1.0 billion of borrowing capacity and matures on December 5, 2029, with the option for two one-year extensions as permitted under extensions, subject to the terms of the agreement.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Year Ended December 31, 2025 2024 2023 Revenue 100% 100% 100% Costs and expenses Cost of revenue 25% 32% 45% 12% 16% 19% Sales and marketing 18% 25% 33% 4% 8% 12% Research and development 14% 18% 4% 12% 18% General and administrative 4% 5% 6% 8% Total costs and expenses 60% 80% 102% 24% 41% 58% Income (loss) from operations 40% 20% (2)% 76% 59% 42% Other income (expense):
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
These notes were issued in multiple series, which mature from 2029 to 2035 and bear fixed annual interest rates ranging from 5.125% to 5.950%, with interest payments due Interest is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The increase was Sales and marketing expenses in 2024 increased by $24.8 million, or 11%, compared to 2023 due primarily due to an increase of $44.9 $12.8 million in personnel-related expenses related to an increase in stock-based compensation related payroll costs and an increase of $4.8 million in marketing costs.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The increase was Research and development expenses in 2025 decreased by $148.2 million, or 40%, compared to 2024, due primarily due to an increase a decrease of $44.9 $151.1 million in personnel-related expenses related to an increase a decrease in stock-based compensation related payroll costs.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
As of December 31, 2024, 2025, we had cash and cash equivalents of $741.4 million, $2.5 billion, consisting primarily of cash on held in checking and interest-bearing deposit with banks and short-term liquid accounts, as well as investments in money market deposit accounts. funds.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
The increase was Research and development expenses in 2024 increased by $40.9 million, or 12%, compared to 2023, due primarily due to an increase of $44.9 $39.8 million in personnel-related expenses related to an increase in stock-based compensation related payroll costs.
Read it in 10-K 2026-02-19 at sec.gov ↗
RewordedMD&A
Net cash provided by operating activities was $2.1 billion for 2024, primarily consisting of $1.6 billion of net income, adjusted for certain non-cash items, such as $448.7 million of amortization, depreciation and write-offs, and $369.4 million of stock-based compensation expense, $28.4 million of loss on settlement of debt, $12.7 million of change in operating right of use asset, compensation, partially offset by a net decrease in the operating assets and liabilities of $349.5 million.
Read it in 10-K 2026-02-19 at sec.gov ↗
