Companies /Communication Services

Applovin Corp - Class A

NASDAQ: APP Advertising Agencies
$312.63
â–² $4.52 (+1.47%) today
Markets closed · 6:21pm ET

Q2 2025 Earnings

Reported Aug 6, 2025, 4:08pm ET · SEC source
$2.39
Beat +3.24%
EPS · est. $2.32
$1.3B
Beat +3.15%
Revenue · est. $1.2B
+24.8%
Beating market
APP vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+8%+16%+24%Aug 6Aug 7report 4:08pm ETearnings+0.1%+21.8%
0+8%+16%+24%Aug 6Aug 7earnings+0.1%+21.8%
APP +21.8%S&P 500 +0.1%
0+8%+16%+24%Aug 6Aug 7report 4:08pm ETearnings+0.6%+21.8%
0+8%+16%+24%Aug 6Aug 7earnings+0.6%+21.8%
APP +21.8%NASDAQ +0.6%
0+9%+18%+27%Aug 5Aug 14report 4:08pm ETearnings+2.0%+18.1%
0+9%+18%+27%Aug 5Aug 14earnings+2.0%+18.1%
APP +18.1%S&P 500 +2.0%
0+9%+18%+27%Aug 5Aug 14report 4:08pm ETearnings+2.1%+18.1%
0+9%+18%+27%Aug 5Aug 14earnings+2.1%+18.1%
APP +18.1%NASDAQ +2.1%
+11.97%
Day of report
+4.26%
Next session
−0.91%
One week
+27.63%
30 days

S&P 500 over the same 30 days: +2.86%.

Did APP Beat Earnings? Q2 2025 Results

AppLovin capped a transformative second quarter with beats on both the top and bottom lines, reporting revenue of $1.26 billion, up 77% year over year and ahead of the $1.22 billion consensus by 3.15%, while diluted EPS of $2.39 cleared the $2.31 estimate by 3.24%. The standout driver was the company's advertising technology platform, which powered net income to $820 million and lifted the net margin to 65% from 44% a year ago, with adjusted EBITDA reaching $1.02 billion at an 81% margin. Equally significant was the June 30 completion of the Apps business divestiture to Tripledot Studios for $400 million in cash plus roughly 20% equity, a move that leaves AppLovin as a pure-play ad tech company, a strategic pivot analysts have highlighted as central to its long-term valuation thesis. Free cash flow of $768 million underscored the capital-light model, and management guided Q3 revenue of $1.32 billion to $1.34 billion with the same 81% adjusted EBITDA margin, signaling confidence in sustained momentum heading into the back half of 2025.

Key Takeaways
  • 77% year-over-year revenue growth driven by advertising platform
  • Adjusted EBITDA margin expansion to 81% from 72% year over year
  • Net income margin expanded to 65% from 44% in Q2 2024
  • Significant reduction in operating expenses including R&D down 56% and sales & marketing down 30% year over year
  • Stock-based compensation reduced to $34.6 million from $93.6 million year over year

Forward Guidance & Outlook

For Q3 2025, AppLovin guided revenue of $1,320 million to $1,340 million, Adjusted EBITDA of $1,070 million to $1,090 million, and Adjusted EBITDA margin of 81%. This guidance reflects the company's pure-play advertising platform following the completion of the Apps business divestiture.

APP YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$400.0M$800.0M$1.2B$711.0M$1.3BRevenue$589.3M$1.1BGross Profit$384.4M$957.7MOperating Income$310.0M$819.5MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

APP Revenue by Segment

Advertising
Apps

Figures from SEC filings and company reports. Not investment advice.