Applovin Corp - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did APP Beat Earnings? Q3 2025 Results
AppLovin delivered a standout third quarter for fiscal 2025, posting earnings per share of $2.45 against a consensus estimate of $2.39, a beat of 2.57%, while revenue climbed 68.2% year-over-year to $1.41 billion, ahead of the $1.34 billion Wall Street had expected. The single most compelling driver behind those numbers was the extraordinary operating leverage embedded in AppLovin's AI-powered advertising platform, with adjusted EBITDA surging 79% to $1.16 billion and margins expanding to 82%, even as sales and marketing and R&D costs each declined year-over-year in absolute dollar terms. Free cash flow nearly doubled to $1.05 billion for the quarter, and the company backed its confidence with a $3.20 billion increase to its share repurchase authorization. <a href="https://247wallst.com/investing/2025/11/05/live-complete-applovin-app-q3-earnings-coverage/">Looking ahead</a>, management guided Q4 revenue to a range of $1.57 billion to $1.60 billion, with adjusted EBITDA margins of 82% to 83%, signaling that the platform's efficiency gains show no signs of slowing.
- 68% year-over-year revenue growth driven by AI-powered advertising platform
- Adjusted EBITDA margin expansion to 82% from 77% year-over-year
- Net income margin improved to 59% from 52% year-over-year
- Significant operating leverage with declining sales & marketing and R&D expenses despite revenue growth
- Free cash flow nearly doubled year-over-year to $1.05 billion
Forward Guidance & Outlook
AppLovin provided Q4 2025 guidance projecting revenue of $1,570 million to $1,600 million, Adjusted EBITDA of $1,290 million to $1,320 million, and Adjusted EBITDA margin of 82% to 83%. The board's decision to increase share repurchase authorization by an incremental $3.2 billion to a total remaining authorization of $3.3 billion reflects continued confidence in the company's future performance.
APP YoY Financials
APP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.