AppLovin (APP) FY2025 10-K Risk Factors: 5 New, 13 Dropped

What the changes say

The June 2025 Apps sale shifts disclosed risk toward advertising, including Axon Ads Manager, third-party platforms, and brand building.
Platform policy changes, macroeconomic uncertainty, tariffs, and geopolitics remain material threats to advertising spending and operating costs.
Larger acquisitions require more complex integration, while divestitures may leave AppLovin with liabilities and transition obligations.
The filing no longer emphasizes Apps operating risks such as user engagement, in-app purchases, content, studios, and game launches.

What changed since the prior 10-K

New

NewRisks 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
Apple, Google, Meta, and other platforms could change fees, advertising access, data use, information sharing, or compliance requirements against AppLovin.
NewRisks Related to Our Business, Operations and Industry
Our business is subject to general macroeconomic conditions and a variety of other factors beyond our control that could adversely affect our revenue and results of operations
Recession, weaker consumer spending, tariffs, political relations, and geopolitical conditions could reduce advertising demand or increase operating costs.
NewRisks Related to Our Business, Operations and Industry
We face risks related to our strategic transactions, which may not achieve our strategic objectives, may disrupt our operations or result in unexpected liabilities or expenses
Larger acquisitions, including Adjust, MoPub, and Wurl, may require substantial management resources and fail to integrate effectively.
NewRisks Related to Our Business, Operations and Industry
If we are unable to successfully integrate and manage our strategic transactions, we may not realize the expected benefits of such transactions or become exposed to additional liabilities, and our business, financial condition, and results of operations could be adversely affected
The Apps sale and future divestitures could reduce revenue, disrupt relationships, and leave AppLovin with indemnification or transition-service obligations.
NewRisks Related to Our Business, Operations and Industry
If we do not successfully or cost-effectively invest in, protect and enhance our brands and reputation, our business, financial condition, and results of operations could be adversely affected
AppLovin must build the corporate and Axon brands while managing reputational damage from partners, outages, technical issues, or regulatory scrutiny.

Dropped

DroppedRisks Related to Our Business, Operations and Industry
Our business is subject to global economic, market, public health, and geopolitical conditions as well as to natural disasters beyond our control and could adversely affect our revenue and results of operations
DroppedRisks Related to Our Business, Operations and Industry
We have experienced significant growth through strategic acquisitions and partnerships, and we face risks related to the integration of such acquisitions and the management of such growth
DroppedRisks Related to Our Business, Operations and Industry
Our strategic review of our Apps portfolio may not result in sustained improvements to our financial performance, strategy, or operations, and we face a number of risks related to such review
DroppedRisks Related to Our Business, Operations and Industry
Our strategic acquisitions and partnerships may expose us to tax risks
DroppedRisks Related to Our Business, Operations and Industry
We have entered into strategic partnerships with mobile gaming studios, and a failure to maintain such relationships may harm our ability to launch new Apps as well as our brand and reputation
DroppedRisks Related to Our Business, Operations and Industry
If we are unable to launch or acquire new Apps and successfully monetize them, or continue to improve the experience and monetization of our existing Apps, our business, financial condition, and results of operations could be adversely affected
DroppedRisks Related to Our Business, Operations and Industry
If we fail to retain existing users or add new users cost-effectively, or if our users decrease their level of engagement with Apps, our business, financial condition, and results of operations could be adversely affected
DroppedRisks Related to Our Business, Operations and Industry
Our business depends in part on our ability to increase IAPs, manage the economies in our Apps and respond to changes with respect to IAPs, and any failure to do so could adversely affect our business, financial condition, and results of operations
DroppedRisks Related to Our Business, Operations and Industry
We anticipate increasing our operating expenses in the future, and we may not be able to achieve or maintain our profitability in any given period. If we cannot achieve or maintain our profitability, our business could be adversely affected
DroppedRisks Related to Our Business, Operations and Industry
If our Apps do not meet user expectations, or contain objectionable content, our reputation, business, financial condition, and results of operations could be adversely affected
DroppedRisks Related to Our Business, Operations and Industry
If we do not successfully or cost-effectively invest in and maintain awareness of the AppLovin brand, our business, financial condition, and results of operations could be adversely affected
Global economic, market, public-health, geopolitical, and natural-disaster conditions could reduce revenue.
DroppedRisks Related to Our Intellectual Property
Our ability to acquire and maintain licenses to intellectual property may affect our business, financial condition, and results of operations
DroppedRisks Related to Financial and Accounting Matters
We rely on assumptions and estimates to calculate certain of our key metrics and real or perceived inaccuracies in such metrics could adversely affect our reputation and our business

Reworded

68% rewrittenRisks Related to Our Business, Operations and Industry
The advertising ecosystem is intensely competitive. If clients prefer our competitors’ products or services over our own, our business, financial condition, and results of operations could be adversely affected
The risk now focuses on advertising competition, adds Meta, Google, Amazon, Unity Software, and developer-tool providers, and removes mobile gaming competition.
Was: The advertising ecosystem and mobile gaming are intensely competitive. If clients or users prefer our competitors’ products or services over our own, our business, financial condition, and results of operations could be adversely affected
61% rewrittenRisks Related to Legal and Regulatory Matters
Changes in tax laws or tax rulings could adversely affect our effective tax rates, business, financial condition, and results of operations
The tax example changed from U.S. research-cost amortization under the Tax Cuts and Jobs Act to the Inflation Reduction Act’s 15% minimum tax.
59% rewrittenRisks Related to Legal and Regulatory Matters
Our business is subject to a variety of U.S. and foreign laws, many of which are unsettled and still developing, which could subject us to claims or otherwise adversely affect our business, financial condition, and results of operations
The legal-risk description now expressly includes sanctions and separates privacy from data protection among evolving regulatory areas.
52% rewrittenRisks Related to Legal and Regulatory Matters
Legal or regulatory proceedings and settlements could cause us to incur additional expenses or otherwise adversely affect our business, financial condition, and results of operations
The risk now says AppLovin retained responsibility for certain proceedings involving former studios after selling its Apps business.
51% rewrittenRisks Related to Our Business, Operations and Industry
Our international operations are subject to increased challenges and risks
The discussion adds detailed foreign-operation risks, including recruitment, cultural differences, data breaches, localization, and market-specific advertising limitations, while removing named countries.
50% rewrittenRisks Related to Our Business, Operations and Industry
Security breaches, improper access to or disclosure of our data or client data, other hacking and phishing attacks on our systems, or other cyber incidents could harm our reputation and adversely affect our business
The scope now refers to clients’ end users, excludes Apps from the data-processing description, and limits source-code protection language to advertising solutions.
Was: Security breaches, improper access to or disclosure of our data or user data, other hacking and phishing attacks on our systems, or other cyber incidents could harm our reputation and adversely affect our business
46% rewrittenRisks Related to Legal and Regulatory Matters
We may not be able to realize tax savings from our international structure, which could materially and adversely affect our results of operations
The risk removes the 2023 restructuring and Singapore intellectual-property licensing details, while adding challenges to arm’s-length intercompany arrangements.
44% rewrittenRisks Related to Our Business, Operations and Industry
Our future growth may involve expansion into new business opportunities, and any efforts to do so that are unsuccessful or are not cost-effective could adversely affect our business, financial condition, and results of operations
The risk adds web-based e-commerce advertisers since 2024, while removing OEM/carrier Array expansion and future e-commerce from the listed opportunities.
44% rewrittenRisks Related to Our Business, Operations and Industry
Third parties with whom we do business may be unable to honor their obligations to us or their actions may put us at risk
39% rewrittenRisks Related to Our Business, Operations and Industry
We have experienced recent rapid growth, which may not be indicative of our future growth. We may be unable to effectively manage the growth of our business, which could adversely affect our business, financial condition, and results of operations
37% rewrittenRisks Related to Ownership of Our Class A Common Stock and Governance
The issuance of additional stock in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute all other stockholders
35% rewrittenRisks Related to Our Business, Operations and Industry
Our results of operations are likely to fluctuate from period-to-period, which could cause the market price of our Class A common stock to decline
32% rewrittenRisks Related to Our Business, Operations and Industry
Our revenue has been concentrated in the mobile app ecosystem and any failure to successfully expand and diversify our revenue sources beyond the mobile ecosystem could adversely affect our business, financial condition, and results of operations
31% rewrittenRisks Related to Ownership of Our Class A Common Stock and Governance
We may not realize the anticipated long-term stockholder value of our share repurchase programs and any failure to repurchase our Class A common stock after we have announced our intention to do so may negatively impact our stock price
31% rewrittenRisks Related to Our Business, Operations and Industry
The failure to attract new clients, the loss of clients, or a reduction in spending by these clients could adversely affect our business, financial condition, and results of operations
29% rewrittenRisks Related to Our Business, Operations and Industry
Our business depends in part on our ability to maintain and scale our technical infrastructure, and any significant disruption to our advertising solutions could damage our reputation, result in a potential loss of engagement, and adversely affect our business, financial condition, and results of operations
Was: Our business depends in part on our ability to maintain and scale our technical infrastructure, and any significant disruption to our Advertising solutions or Apps could damage our reputation, result in a potential loss of engagement, and adversely affect our business, financial condition, and results of operations
28% rewrittenRisks Related to Our Business, Operations and Industry
We plan to continue to consider opportunities to expand and diversify our operations through strategic acquisitions and partnerships. We face a number of risks related to strategic transactions we may pursue
25% rewrittenRisks Related to Legal and Regulatory Matters
We are subject to governmental export controls and economic sanctions laws that could impair our ability to compete in global markets or subject us to liability if we violate the controls
24% rewrittenRisks Related to Our Business, Operations and Industry
The advertising ecosystem is subject to rapid technological change, and if we do not adapt to, and appropriately allocate our resources among, emerging technologies and business models, our business, financial condition, and results of operations could be adversely affected
Was: The advertising ecosystem and mobile gaming are subject to rapid technological change, and if we do not adapt to, and appropriately allocate our resources among, emerging technologies and business models, our business, financial condition, and results of operations could be adversely affected
23% rewrittenRisks Related to Legal and Regulatory Matters
If we are found liable for content or advertising that is served through our advertising solutions, our business could be adversely affected
Was: If we are found liable for content that is distributed through or advertising that is served through our Advertising solutions or Apps, our business could be adversely affected
23% rewrittenRisks Related to Legal and Regulatory Matters
We have incurred and will continue to incur increased costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could adversely affect our business, financial condition, and results of operations
22% rewrittenRisks Related to Our Business, Operations and Industry
We generally do not have long-term agreements with our clients

All 44 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business, Operations and Industry

01Our results of operations are likely to fluctuate from period-to-period, which could cause the market price of our Class A common stock to decline35% rewritten
02Security breaches, improper access to or disclosure of our data or client data, other hacking and phishing attacks on our systems, or other cyber incidents could harm our reputation and adversely affect our business50% rewritten
03If 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 affectedNew
04We are highly dependent on our co-founder and chief executive officer, as well as our senior management team. We operate a lean organizational structure and our business and growth may be adversely affected if we fail to attract, retain, and motivate key personnel
05Our company culture has contributed to our success and if we cannot maintain this culture as we grow, our business could be harmed
06The failure to attract new clients, the loss of clients, or a reduction in spending by these clients could adversely affect our business, financial condition, and results of operations31% rewritten
07The advertising ecosystem is intensely competitive. If clients prefer our competitors’ products or services over our own, our business, financial condition, and results of operations could be adversely affected68% rewritten
08The advertising ecosystem is subject to rapid technological change, and if we do not adapt to, and appropriately allocate our resources among, emerging technologies and business models, our business, financial condition, and results of operations could be adversely affected24% rewritten
09Our business depends in part on our ability to maintain and scale our technical infrastructure, and any significant disruption to our advertising solutions could damage our reputation, result in a potential loss of engagement, and adversely affect our business, financial condition, and results of operations29% rewritten
10Our revenue has been concentrated in the mobile app ecosystem and any failure to successfully expand and diversify our revenue sources beyond the mobile ecosystem could adversely affect our business, financial condition, and results of operations32% rewritten
11Our future growth may involve expansion into new business opportunities, and any efforts to do so that are unsuccessful or are not cost-effective could adversely affect our business, financial condition, and results of operations44% rewritten
12Our business is subject to general macroeconomic conditions and a variety of other factors beyond our control that could adversely affect our revenue and results of operationsNew
13Our international operations are subject to increased challenges and risks51% rewritten
14We plan to continue to consider opportunities to expand and diversify our operations through strategic acquisitions and partnerships. We face a number of risks related to strategic transactions we may pursue28% rewritten
15We face risks related to our strategic transactions, which may not achieve our strategic objectives, may disrupt our operations or result in unexpected liabilities or expensesNew
16If we are unable to successfully integrate and manage our strategic transactions, we may not realize the expected benefits of such transactions or become exposed to additional liabilities, and our business, financial condition, and results of operations could be adversely affectedNew
17We have experienced recent rapid growth, which may not be indicative of our future growth. We may be unable to effectively manage the growth of our business, which could adversely affect our business, financial condition, and results of operations39% rewritten
18We generally do not have long-term agreements with our clients22% rewritten
19If we do not successfully or cost-effectively invest in, protect and enhance our brands and reputation, our business, financial condition, and results of operations could be adversely affectedNew
20Third parties with whom we do business may be unable to honor their obligations to us or their actions may put us at risk44% rewritten

Risks Related to Legal and Regulatory Matters

21Our business is subject to a variety of U.S. and foreign laws, many of which are unsettled and still developing, which could subject us to claims or otherwise adversely affect our business, financial condition, and results of operations59% rewritten
22The development and use of AI in our business, combined with an uncertain regulatory environment, may adversely affect our business, reputation, financial condition or results of operations
23We are subject to the Foreign Corrupt Practices Act, and similar anti-corruption and anti-bribery laws, and non-compliance with such laws could subject us to criminal penalties or significant fines and adversely affect our business and reputation
24We are subject to governmental export controls and economic sanctions laws that could impair our ability to compete in global markets or subject us to liability if we violate the controls25% rewritten
25Changes in tax laws or tax rulings could adversely affect our effective tax rates, business, financial condition, and results of operations61% rewritten
26We may have exposure to greater than anticipated tax liabilities
27Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added or similar taxes, and any such assessments could adversely affect our business, financial condition, and results of operations
28We may not be able to realize tax savings from our international structure, which could materially and adversely affect our results of operations46% rewritten
29If we are found liable for content or advertising that is served through our advertising solutions, our business could be adversely affected23% rewritten
30We have incurred and will continue to incur increased costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could adversely affect our business, financial condition, and results of operations23% rewritten
31Legal or regulatory proceedings and settlements could cause us to incur additional expenses or otherwise adversely affect our business, financial condition, and results of operations52% rewritten

Risks Related to Our Intellectual Property

32Failure to protect or enforce our proprietary and intellectual property rights or the costs involved in such enforcement could adversely affect our business, financial condition, and results of operations
33We are, and may in the future be, subject to intellectual property disputes, which are costly to defend and could require us to pay significant damages and could limit our ability to use certain technologies in the future
34Many of our products and services contain open source software, and we license some of our software through open source projects, which may pose particular risks to our proprietary software, products, and services in a manner that could adversely affect our business, financial condition, and results of operations

Risks Related to Financial and Accounting Matters

35If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired
36We may be required to record a significant charge to earnings if our goodwill becomes impaired
37We have indebtedness, and our obligations thereunder may limit our operational flexibility or otherwise adversely affect our business, financial condition, and results of operations
38We may be unable to generate sufficient cash flow to satisfy our significant debt service obligations, which could have a material and adverse effect on our business, financial condition, results of operations, and cash flows
39We may require additional capital to meet our financial obligations and support business growth, and this capital may not be available on acceptable terms or at all

Risks Related to Ownership of Our Class A Common Stock and Governance

40We are considered a “controlled company” within the meaning of the Nasdaq corporate governance requirements, and, as a result, we qualify for exemptions from certain corporate governance requirements
41The market price of our Class A common stock has been, and could continue to be, volatile, and you could lose all or part of your investment
42We may not realize the anticipated long-term stockholder value of our share repurchase programs and any failure to repurchase our Class A common stock after we have announced our intention to do so may negatively impact our stock price31% rewritten
43The issuance of additional stock in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute all other stockholders37% rewritten
44Our multi-class stock structure, the Voting Agreement, and other provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer, or proxy contest difficult, thereby depressing the market price of our Class A common stock

Other AppLovin 10-Ks

FY2024 10-K risk factors
55 risks
Mobile advertising and gaming concentration makes advertiser demand, user engagement, app monetization, and ecosystem changes central risks.
Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.