AppLovin Corp Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Basic EPS: | |||||||||||||||||
Numerator: | |||||||||||||||||
| Net income from continuing operations | $ | 3,433,195 | $ | 1,589,524 | $ | 457,826 | |||||||||||
| Less: income attributable to participating securities | (478) | (2,731) | (2,270) | ||||||||||||||
| Net income from continuing operations attributable to common stockholders - Basic | 3,432,717 | 1,586,793 | 455,556 | ||||||||||||||
| Loss from discontinued operations, net of income taxes, attributable to common stockholders - Basic | (99,431) | (9,734) | (100,615) | ||||||||||||||
| Net income attributable to common shareholders - Basic | 3,333,286 | 1,577,059 | 354,941 | ||||||||||||||
Denominator: | |||||||||||||||||
| Weighted-average shares used in computing net income (loss) per share - Basic | 338,781 | 336,922 | 351,952 | ||||||||||||||
| Net income (loss) per share attributed to Class A and Class B common stockholders - Basic: | |||||||||||||||||
| Continuing operations | $ | 10.13 | $ | 4.71 | $ | 1.29 | |||||||||||
| Discontinued operations | (0.29) | (0.03) | (0.28) | ||||||||||||||
| Basic net income per share | $ | 9.84 | $ | 4.68 | $ | 1.01 | |||||||||||
Diluted EPS: | |||||||||||||||||
Numerator: | |||||||||||||||||
| Net income from continuing operations attributable to common stockholders - Basic | $ | 3,432,717 | $ | 1,586,793 | $ | 455,556 | |||||||||||
| Re-allocation of participating securities considered potentially dilutive securities | 4 | 85 | 66 | ||||||||||||||
| Net income from continuing operations attributable to common stockholders - Diluted | 3,432,721 | 1,586,878 | 455,622 | ||||||||||||||
| Loss from discontinued operations, net of income taxes, attributable to common stockholders - Diluted | (99,431) | (9,734) | (100,629) | ||||||||||||||
| Net income attributable to common stockholders - Diluted | $ | 3,333,290 | $ | 1,577,144 | $ | 354,993 | |||||||||||
Denominator: | |||||||||||||||||
Weighted-average shares used in computing net income (loss) per share - Basic | 338,781 | 336,922 | 351,952 | ||||||||||||||
Weighted-average dilutive stock awards | 3,189 | 10,886 | 10,637 | ||||||||||||||
Weighted-average shares used in computing net income (loss) per share - Diluted | 341,970 | 347,808 | 362,589 | ||||||||||||||
| Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted: | |||||||||||||||||
| Continuing operations | $ | 10.04 | $ | 4.56 | $ | 1.26 | |||||||||||
| Discontinued operations | (0.29) | (0.03) | (0.28) | ||||||||||||||
| Diluted net income per share | $ | 9.75 | $ | 4.53 | $ | 0.98 | |||||||||||
Anti-dilutive potential common stock excluded | 11 | 137 | 4,861 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.