AppLovinAPP -0.40%93 Pretax Margin % is 77.69% as of Mar. 2026, which is 512% above its 10-year median of 12.70. 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 1,023 Media - Diversified companies, AppLovin ranks better than 98.63% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. AppLovin's Pre-Tax Income for the
three
months ended in Mar. 2026 was $1,431 Mil. AppLovin's Revenue for the
three
months ended in Mar. 2026 was $1,842 Mil. Therefore, AppLovin's pretax margin for the quarter that ended in Mar. 2026 was 77.69%.
The historical rank and industry rank for AppLovin's Pretax Margin % or its related term are showing as below:
APP'
s Pretax Margin % Range Over the Past 10 Years
Min: -9.35 Med: 12.7 Max: 74.46
Current: 74.46
APP's Pretax Margin % is ranked better than 98.63% of 1023
companies
in the Media - Diversified industry
Industry Median: 2.01
vs APP: 74.46
AppLovin (NAS:APP) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
AppLovin Pretax Margin % Related Terms
AppLovin Pretax Margin % Historical Data
* Premium members only.
The historical data trend for AppLovin's Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, AppLovin's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where AppLovin's Pretax 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.
AppLovin (APP) has a Pretax Margin % of 77.69% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AppLovin and its competitors. This is 512% above median its historical median of 12.70. According to the industry distribution chart, AppLovin ranks #14 out of 1023 companies in the Media - Diversified industry, placing it in the top 1.4%.
Is AppLovin's Pretax Margin % too high?
AppLovin's current Pretax Margin % of 77.69% is 512% above median its 10-year median of 12.70. The Media - Diversified industry median Pretax Margin % is 2.01. AppLovin's value of 77.69% is 3765.2% above this industry median. Based on the distribution chart, AppLovin ranks #14 out of 1023 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 Pretax Margin % compare to OMC and TTD?
According to the Media - Diversified industry distribution chart, AppLovin ranks #14 out of 1023 companies for Pretax Margin %. This places AppLovin in the top 1% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.01. AppLovin's value of 77.69% is 3765.2% above this benchmark. While the company's 10-year median is 12.70 vs. the industry median of 2.01, 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 Pretax Margin % for a Media - Diversified company?
The median Pretax Margin % among Media - Diversified companies is 2.01, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AppLovin's current Pretax Margin % of 77.69% is 3765.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on AppLovin and its competitors. For the Media - Diversified industry, the median Pretax Margin % is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AppLovin's current Pretax Margin % is 77.69%, which is 512% above median its own 10-year median of 12.70. 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 Pretax Margin % is 77.69%, which is 512% above median its 10-year median of 12.70 and 3765.2% above the Media - Diversified industry median of 2.01. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For AppLovin (APP), the current Pretax Margin % is 77.69% 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:
Pretax Margin %: 77.69% (512% above median its 10-year median of 12.70)
GF Value™: $489.12 vs. price of $464.96 (4.9% below fair value)
Industry Position: 3765.2% above the Media - Diversified median (#14 of 1023)
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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