Form 4: AppLovin CEO Arash Foroughi Granted 20,236 RSUs

AppLovin CEO and Chairperson Arash Foroughi was granted 20,236 restricted stock units, vesting over approximately one year starting February 2026.

Summary

• Arash Adam Foroughi, CEO, Chairperson, Director, and 10% Owner of AppLovin Corp (APP), was granted 20,236 Class A Common Stock restricted stock units (RSUs).
• The transaction date for this acquisition was October 30, 2025, with a reported price of $0.00 per RSU.
• Each RSU represents a contingent right to receive one share of Class A common stock.
• The RSUs will vest in four equal installments: 1/4th on February 20, 2026, and 1/4th on each three-month anniversary thereafter, contingent on continued service.
• Following this transaction, Mr. Foroughi directly beneficially owns 2,610,290 shares of Class A Common Stock (including certain RSUs).
• Additionally, Mr. Foroughi indirectly beneficially owns 3,030,517 shares through The JAF Children's Trust, 1,530,519 shares through The WHK Trust, and 780,519 shares through The OD Trust, for which he disclaims beneficial ownership for Section 16 purposes.

Sentiment

Score: 7

Explanation: The RSU grant is a positive event for the executive, representing a standard form of compensation and incentive alignment. It is a routine disclosure and not indicative of significant operational or financial changes for the company.

Positives

• The grant of restricted stock units aligns the CEO's long-term interests with those of shareholders, incentivizing sustained performance.
• The RSU grant is a form of equity compensation, which is a common and effective way to retain key executives.

Future Outlook

The granted restricted stock units are scheduled to vest in quarterly installments beginning February 20, 2026, and continuing for approximately one year, subject to the reporting person's continued service.

Industry Context

The grant of restricted stock units to a CEO is a standard practice in the technology and mobile advertising industry, used to attract, retain, and incentivize top executive talent by aligning their compensation with company performance and shareholder value creation.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) as a component of executive compensation is a widely adopted practice across the technology sector, including companies like Meta Platforms, Alphabet, and Microsoft, which frequently use similar equity-based incentives to retain key leadership.
• The vesting schedule, typically over several years and contingent on continued service, is consistent with industry benchmarks designed to promote long-term commitment and performance.

Related Party Transactions

• Arash Foroughi indirectly beneficially owns shares held by The JAF Children's Trust, The WHK Trust, and The OD Trust, for which his children are beneficiaries. He disclaims beneficial ownership of these shares for Section 16 purposes.

Stakeholder Impact

• Shareholders: Potential for future dilution as RSUs vest and convert to common stock, but also benefit from increased alignment of executive incentives with long-term company performance.
• Employees: The RSU grant to the CEO reinforces a compensation structure that often includes equity, potentially signaling stability in executive compensation practices.

Next Steps

• The RSUs will begin vesting on February 20, 2026, with subsequent vesting occurring every three months thereafter.

Key Dates

Recommendation

This Form 4 filing reports a routine grant of restricted stock units to the CEO as part of their compensation package. Such a transaction is a standard corporate event and does not typically provide new information that would warrant a change in investment recommendation. It primarily serves to align executive incentives with long-term shareholder value.

Keywords

AppLovin, APP, Arash Foroughi, Restricted Stock Units, RSU, Insider Transaction, Executive Compensation, Equity Grant, Beneficial Ownership