01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Revenue surged by 70% year-over-year to $5.48 billion, primarily driven by strong performance in the Axon Ads Manager.
- Net income grew significantly to $3.33 billion, up from $1.58 billion in the prior year.
- Adjusted EBITDA also saw substantial growth, reaching $4.51 billion with an impressive Adjusted EBITDA margin of 82.3%.
- The company completed the sale of its Apps business on June 30, 2025, reclassifying it as discontinued operations.
- AppLovin repurchased $2.2 billion of its Class A common stock during the year, demonstrating a commitment to shareholder returns.
- Research and development expenses decreased by 40% year-over-year, while sales and marketing expenses decreased by 19%, indicating improved operational efficiency.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, AppLovin Corp kept $0.61.
- Revenue$5.48B100.0%
- Cost of revenue−$665.1M12.1%
- Gross profit$4.82B87.9%
- Operating costs−$663.7M12.1%
- Operating income$4.15B75.8%
- Interest, other & tax−$817.9M14.9%
- Net income$3.33B60.8%
Where FY2025 revenue went
$5.48B- Net income: $3.33B, 61% of revenue
- Interest, other & tax: $817.9M, 15% of revenue
- Cost of revenue: $665.1M, 12% of revenue
- R&D: $226.5M, 4.1% of revenue
- Other operating costs: $437.2M, 8.0% of revenue
Kept 61% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $5.48B$3.22B | +70.0% |
| Cost of Revenue | $665.14M$520.61M | +27.8% |
| Gross Profit | $4.82B$2.70B | +78.1% |
| R&D Expenses | $226.51M$374.71M | −39.6% |
| Operating Expenses | $1.33B$1.31B | +1.2% |
| Operating Income | $4.15B$1.91B | +117.3% |
| Interest Expense | $200.62M$307.98M | −34.9% |
| Net Income | $3.33B$1.58B | +111.0% |
| EPS (Basic) | $9.84$4.68 | +110.3% |
| EPS (Diluted) | $9.75$4.53 | +115.2% |
| Shares Outstanding (Basic) | 338.78M336.92M | +0.6% |
| Shares Outstanding (Diluted) | 341.97M347.81M | −1.7% |
05—Questions
Frequently Asked Questions
What was AppLovin's primary growth driver in 2025?
AppLovin's primary growth driver in 2025 was the strong performance of its Axon Ads Manager, which saw a 70% increase in revenue due to improvements in both the volume of installations and net revenue per installation.
What was the strategic significance of selling the Apps business?
The divestiture of the Apps business on June 30, 2025, was a strategic move to streamline operations and focus resources on its core advertising solutions. This allows the company to concentrate on advancing its AI-powered advertising technology and market expansion.
How is AppLovin managing its debt and returning capital to shareholders?
AppLovin has a substantial debt load, primarily senior unsecured notes totaling $3.6 billion. The company generated significant free cash flow, allowing it to repurchase $2.2 billion of its Class A common stock during 2025, indicating a commitment to enhancing shareholder value.
What are the main risks facing AppLovin according to the filing?
Key risks identified include fluctuations in operating results, reliance on third-party platforms (like Apple and Google), cybersecurity threats, changes in privacy laws, intense competition, and the potential impact of macroeconomic conditions and geopolitical events on advertising spending.
06—Continue