Form 4: AppLovin CEO Foroughi Sells Shares, Tax Withholding

AppLovin CEO Arash Adam Foroughi reported sales of Class A Common Stock and shares withheld for tax obligations, primarily from a trust for his children, under a 10b5-1 plan.

Summary

• Arash Adam Foroughi, CEO, Chairperson, Director, and 10% Owner of AppLovin Corp (APP), reported multiple transactions on November 20, 2025.
• 9,129 shares of Class A Common Stock were withheld by the Issuer at $520.82 to satisfy income tax and withholding obligations in connection with the vesting and net settlement of previously reported Restricted Stock Units (RSUs). This transaction was not a sale by the Reporting Person.
• A total of 19,004 shares of Class A Common Stock were sold indirectly through The JAF Children's Trust for the benefit of the Reporting Person's children.
• These sales occurred at weighted average prices ranging from $520.43 to $551.73 per share.
• Following these transactions, Foroughi directly beneficially owns 2,601,161 shares (certain of which are represented by RSUs) and indirectly owns 3,011,599 shares through The JAF Children's Trust.
• The transactions were made pursuant to a Rule 10b5-1(c) contract, instruction, or written plan.

Sentiment

Score: 5

Explanation: Neutral. While insider selling can sometimes be viewed negatively, these transactions appear to be routine, pre-planned sales (10b5-1 plan) and tax-related withholdings, which are common for executives managing their compensation and portfolio. The sales are also from a trust for children, and the reporting person disclaims beneficial ownership, further reducing direct negative sentiment.

Positives

• The sales were executed at relatively high prices, ranging from $520.43 to $551.73 per share.
• The transactions were conducted under a Rule 10b5-1 plan, indicating pre-scheduled sales rather than reactive selling.

Negatives

• Insider selling, even if pre-planned, can sometimes be perceived negatively by the market as it reduces the insider's direct or indirect stake.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• Sales of Class A Common Stock were made indirectly through The JAF Children's Trust for the benefit of the Reporting Person's children. The Reporting Person disclaims beneficial ownership of these shares.

Stakeholder Impact

• Shareholders: The sale of shares by a key executive, even if pre-planned, could be interpreted in various ways, but the 10b5-1 plan mitigates concerns about reactive selling. The overall impact on the company's operations or strategy is minimal as it's a personal financial transaction.

Key Dates

Recommendation

The filing details routine insider transactions, including tax-related share withholding and pre-planned sales from a trust. These are common events for executives managing their equity compensation and personal finances and do not typically signal a change in the company's fundamental outlook or performance. Therefore, the filing itself does not provide new information that would warrant a change from a 'hold' recommendation, assuming the investor's existing thesis on AppLovin remains intact.

Keywords

AppLovin, APP, Insider Trading, Form 4, Arash Adam Foroughi, Stock Sale, Tax Withholding, Restricted Stock Units, 10b5-1 Plan, CEO, Director, 10% Owner