Form 4: AppLovin CEO Reports RSU Tax Withholding Transaction
Insider Transaction Report
AppLovin CEO Arash Adam Foroughi reported a disposition of 2,747 Class A Common Stock shares for tax withholding related to RSU vesting.
Summary
- Arash Adam Foroughi, CEO, Chairperson, Director, and 10% Owner of AppLovin Corp (APP), reported a transaction on February 20, 2026.
- The transaction involved the disposition of 2,747 shares of Class A Common Stock at a price of $418.68 per share.
- This disposition was not a sale by the Reporting Person but represents shares withheld by AppLovin Corp to satisfy income tax and withholding obligations upon the vesting and net settlement of previously reported Restricted Stock Units (RSUs).
- Following this transaction, Mr. Foroughi directly beneficially owns 2,550,414 shares of Class A Common Stock, some of which are represented by RSUs.
- Additionally, Mr. Foroughi indirectly beneficially owns 2,983,017 shares through The JAF Children's Trust, 1,530,519 shares through The WHK Trust, and 780,519 shares through The OD Trust, all for the benefit of his children, for which he disclaims beneficial ownership for Section 16 purposes.
Sentiment
Score: 5
Explanation: StockSavvy.ai views this filing as neutral. It reports a routine administrative transaction related to executive compensation (tax withholding on RSU vesting) and does not indicate any material operational or financial changes for the company.
Positives
- The underlying event of the transaction is the vesting of Restricted Stock Units (RSUs), which represents a form of compensation for the CEO and indicates continued employment or achievement of performance milestones.
Negatives
- The transaction resulted in a disposition of 2,747 shares of Class A Common Stock, reducing the CEO's direct beneficial ownership, although this was for mandatory tax withholding rather than a voluntary sale.
Future Outlook
This filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.
Industry Context
StockSavvy.ai notes that the vesting of Restricted Stock Units (RSUs) and subsequent share withholding for tax obligations are standard practices in executive compensation across the technology and broader public company sectors. This type of Form 4 filing is routine and administrative.
Comparison to Industry Standards
- The practice of withholding shares to cover tax obligations upon RSU vesting is a common and standard procedure for executive compensation in publicly traded companies, aligning with typical industry practices for managing equity awards.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Administrative Authorization | CEO Arash Adam Foroughi granted a Power of Attorney to Victoria Valenzuela, Gordon Grafft, Han Ly, Dia Walsh, and Tiffany Camp to prepare and submit SEC Forms 3, 4, and 5 on his behalf. | 02/05/2026 | This streamlines SEC filing compliance for the reporting person, ensuring timely and accurate submission of required insider transaction reports. |
Stakeholder Impact
- Shareholders: Minimal direct impact, as this is a routine administrative transaction for tax purposes related to executive compensation, not a voluntary sale or a new equity issuance.
- Employees: No direct impact mentioned.
Key Dates
| Date | Description |
|---|---|
| 02/05/2026 | Date Arash Adam Foroughi signed the Power of Attorney authorizing individuals to handle his SEC filings. |
| 02/20/2026 | Date of the reported transaction (disposition of shares for tax withholding). |
| 02/24/2026 | Date the Form 4 was signed by the attorney-in-fact. |
Keywords
AppLovin, APP, Insider Transaction, Form 4, RSU Vesting, Tax Withholding, Beneficial Ownership, CEO, Executive Compensation
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