Markets· August 17, 2026 at 03:38 p.m.
Greenhaven Road Capital Highlights AppLovin Corporation's Attractive Cash Flow Multiple
Key takeaways
- AppLovin Corporation (NASDAQ:APP) generated more than $6 million of EBITDA per employee in 2025
- The company's revenue grew ~70% year-over-year to $5.48B
- AppLovin Corporation (NASDAQ:APP) is not on Greenhaven Road Capital's list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026
In its Q2 2026 investor letter, Greenhaven Road Capital highlighted AppLovin Corporation (NASDAQ:APP) as a potential investment with an attractive cash flow multiple. The mobile technology company posted a one-month return of -25.71% and closed at $315.44 per share on August 14, reflecting a market capitalization of $105.97 billion. Despite the declines in market multiples, Greenhaven Road Capital believes that underlying businesses continue to grow, suggesting a favorable positioning for returns.
Greenhaven Road Capital stated that AppLovin Corporation (NASDAQ:APP) generated more than $6 million of EBITDA per employee in 2025, with an 88% conversion of EBITDA to free cash flow. The company's revenue grew ~70% year-over-year to $5.48B, and it had an ~82% adjusted EBITDA margin.
However, AppLovin Corporation (NASDAQ:APP) is not on Greenhaven Road Capital's list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. Despite the potential of AppLovin Corporation (NASDAQ:APP) as an investment, the fund believes certain AI stocks offer greater upside potential and carry less downside risk.
Greenhaven Road Capital's full investor letter can be downloaded here.
