Applovin Corp - Class A

AppLovin posted a mixed but strategically pivotal first quarter for 2025, delivering a top-line beat while falling short on the bottom line as a $188.94 million goodwill impairment charge clouded otherwise exceptional operating momentum. Revenue climbed 40.3% year-over-year to $1.48 billion, topping the $1.38 billion consensus by 7.65%, yet earnings per diluted share of $1.67 missed the $1.96 estimate by 14.58%, largely due to that impairment tied to the company's pending divestiture of its mobile gaming business to Tripledot Studios for $400 million. The real story, however, was the advertising engine underneath: the Advertising segment surged 71% to $1.16 billion with an 81% Adjusted EBITDA margin, helping lift total Adjusted EBITDA to $1.01 billion, up 83% year-over-year. With the Apps segment sale expected to close this quarter, AppLovin guided Q2 advertising revenue of $1.20 billion to $1.22 billion at that same 81% margin, signaling confidence in its sharpened focus on high-margin ad technology, a pivot that has renewed bullish sentiment among investors watching the stock's recent recovery.