AppLovinAPP -0.40%93 Gross Margin % is 88.95% as of Mar. 2026, which is 17% above its 10-year median of 75.73. GuruFocus rates APP with a GF Score™ of 93/100 and a GF Value™ of $489.12 (Fairly Valued). The stock has 1 warning sign investors should review. Among 953 Media - Diversified companies, AppLovin ranks better than 91.71% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. AppLovin's Gross Profit for the
three
months ended in Mar. 2026 was $1,639 Mil. AppLovin's Revenue for the
three
months ended in Mar. 2026 was $1,842 Mil. Therefore, AppLovin's Gross Margin % for the quarter that ended in Mar. 2026 was 88.95%.
The historical rank and industry rank for AppLovin's Gross Margin % or its related term are showing as below:
APP'
s Gross Margin % Range Over the Past 10 Years
Min: 55.41 Med: 75.73 Max: 88.37
Current: 88.37
During the past 7 years, the highestGross Margin % of AppLovin was 88.37%. The lowest was 55.41%. And the median was 75.73%.
APP's Gross Margin % is ranked better than 91.71% of 953
companies
in the Media - Diversified industry
Industry Median: 38.9
vs APP: 88.37
AppLovin had a gross margin of 88.95% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AppLovin was 8.70% per year.
AppLovin (NAS:APP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
AppLovin had a gross margin of 88.95% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
AppLovin Gross Margin % Related Terms
AppLovin Gross Margin % Historical Data
* Premium members only.
The historical data trend for AppLovin's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Advertising Agencies subindustry, AppLovin's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AppLovin Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, AppLovin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AppLovin's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
AppLovin (APP) has a Gross Margin % of 88.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AppLovin and its competitors. This is 17% above median its historical median of 75.73. Over the past decade, AppLovin's Gross Margin % has ranged from 55.41 to 88.37. According to the industry distribution chart, AppLovin ranks #79 out of 953 companies in the Media - Diversified industry, placing it in the top 8.3%.
Is AppLovin's Gross Margin % too high?
AppLovin's current Gross Margin % of 88.95% is 17% above median its 10-year median of 75.73. Over the past 10 years, this metric has ranged from a low of 55.41 to a high of 88.37. The Media - Diversified industry median Gross Margin % is 38.90. AppLovin's value of 88.95% is 128.7% above this industry median. Based on the distribution chart, AppLovin ranks #79 out of 953 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, AppLovin has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AppLovin's Gross Margin % compare to OMC and TTD?
According to the Media - Diversified industry distribution chart, AppLovin ranks #79 out of 953 companies for Gross Margin %. This places AppLovin in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.90. AppLovin's value of 88.95% is 128.7% above this benchmark. Historically, AppLovin's own Gross Margin % has ranged from 55.41 to 88.37 over the past decade. While the company's 10-year median is 75.73 vs. the industry median of 38.90, AppLovin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AppLovin's current Gross Margin % of 88.95% is 128.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on AppLovin and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AppLovin's current Gross Margin % is 88.95%, which is 17% above median its own 10-year median of 75.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AppLovin stock overvalued right now?
Based on GuruFocus' analysis, AppLovin (APP) is currently considered Fairly Valued. The stock's GF Value™ is $489.12, compared to a current price of $464.96 — trading 4.9% below its estimated fair value. The current Gross Margin % is 88.95%, which is 17% above median its 10-year median of 75.73 and 128.7% above the Media - Diversified industry median of 38.90. AppLovin's overall GF Score™ is 93/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For AppLovin (APP), the current Gross Margin % is 88.95% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AppLovin (APP) Overvalued in 2026?
Based on GuruFocus' analysis, AppLovin stock appears to be undervalued.
The current stock price of $464.96 is trading 4.9% below its estimated GF Value™ of $489.12.
GuruFocus considers AppLovin to be Fairly Valued.
Key valuation signals for APP:
Gross Margin %: 88.95% (17% above median its 10-year median of 75.73)
GF Value™: $489.12 vs. price of $464.96 (4.9% below fair value)
Industry Position: 128.7% above the Media - Diversified median (#79 of 953)
No single metric tells the full story. See the APP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max. AppLovin's primary tool for future growth is AXON 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.
93GF Score
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