Summary
AppLovin Corporation reported robust financial performance for the fiscal year ended December 31, 2025, with significant revenue growth driven primarily by its core Axon Ads Manager product. The company demonstrated strong operational efficiency, leading to substantial increases in Adjusted EBITDA and net income. A key strategic move during the year was the divestiture of its Apps business, streamlining operations and allowing for a greater focus on its advertising solutions. AppLovin continues to leverage its AI-powered technology, particularly the Axon AI recommendation engine, to enhance its advertising solutions like Axon Ads Manager and MAX. The company also shows a commitment to returning capital to shareholders through its active share repurchase program. Despite a competitive and evolving advertising landscape, AppLovin's strategic investments in technology and market expansion, including into Connected TV (CTV), position it for continued growth.
Financial Highlights
50 data points| Revenue | $5.48B |
| Cost of Revenue | $665.14M |
| Gross Profit | $4.82B |
| R&D Expenses | $226.51M |
| Operating Expenses | $1.33B |
| Operating Income | $4.15B |
| Interest Expense | $200.62M |
| Net Income | $3.33B |
| EPS (Basic) | $9.84 |
| EPS (Diluted) | $9.75 |
| Shares Outstanding (Basic) | 338.78M |
| Shares Outstanding (Diluted) | 341.97M |
Key Highlights
- 1Revenue surged by 70% year-over-year to $5.48 billion, primarily driven by strong performance in the Axon Ads Manager.
- 2Net income grew significantly to $3.33 billion, up from $1.58 billion in the prior year.
- 3Adjusted EBITDA also saw substantial growth, reaching $4.51 billion with an impressive Adjusted EBITDA margin of 82.3%.
- 4The company completed the sale of its Apps business on June 30, 2025, reclassifying it as discontinued operations.
- 5AppLovin repurchased $2.2 billion of its Class A common stock during the year, demonstrating a commitment to shareholder returns.
- 6Research and development expenses decreased by 40% year-over-year, while sales and marketing expenses decreased by 19%, indicating improved operational efficiency.