10-QPeriod: Q2 FY2025

AppLovin Corp Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 6, 2025For Securities:APP

Summary

AppLovin Corporation (APP) reported a significant increase in revenue for the quarter ending June 30, 2025, with revenue jumping 77% year-over-year to $1.26 billion. This strong top-line growth was driven primarily by improved AppDiscovery performance, evidenced by a 70% increase in net revenue per installation and an 8% rise in installation volume. The company also demonstrated robust profitability, with net income from continuing operations soaring to $771.9 million, a substantial increase from $301.0 million in the prior year period. This performance highlights the effectiveness of AppLovin's advertising solutions and its strategic focus on core business areas following the divestiture of its Apps Business. The divestiture of the Apps Business was completed on June 30, 2025, for total consideration of $715.6 million (including cash and Tripledot shares). This strategic move is expected to allow AppLovin to dedicate more resources to advancing its advertising business. The company also reported strong cash flow generation, with net cash provided by operating activities at $1.6 billion for the first six months of the year, underscoring its financial strength and ability to reinvest in growth and shareholder returns, including significant share repurchases.

Financial Highlights

48 data points
Beta

Revenue

$1.26B

87.7% Gross Margin

Net Income

$819.53M

65.1% Net Margin

EPS (Diluted)

$2.39

Total Assets

$5.96B

Cash & Equivalents

$1.19B

Free Cash Flow

$772.23M

Financial Statements
Beta
Revenue$1.26B
Cost of Revenue$155.08M
Gross Profit$1.10B
R&D Expenses$44.03M
Operating Expenses$301.07M
Operating Income$957.68M
Net Income$819.53M
EPS (Basic)$2.42
EPS (Diluted)$2.39
Shares Outstanding (Basic)338.62M
Shares Outstanding (Diluted)342.19M

Key Highlights

  • 1Revenue surged 77% year-over-year to $1.26 billion for the three months ended June 30, 2025, driven by strong AppDiscovery performance.
  • 2Net income from continuing operations reached $771.9 million, a significant increase from $301.0 million in the prior year quarter.
  • 3The divestiture of the Apps Business was completed on June 30, 2025, generating $715.6 million in consideration.
  • 4AppLovin now operates as a single reportable segment focused on its advertising solutions.
  • 5Net cash provided by operating activities was $1.6 billion for the six months ended June 30, 2025, demonstrating strong cash flow generation.
  • 6The company repurchased $1.3 billion of Class A common stock during the six months ended June 30, 2025.
  • 7Adjusted EBITDA increased to $1.02 billion for the three months ended June 30, 2025, with an Adjusted EBITDA margin of 80.9%.

Frequently Asked Questions

The primary driver of AppLovin's revenue growth was improved performance in its AppDiscovery solution, which saw a 70% increase in net revenue per installation and an 8% increase in installation volume for the three months ended June 30, 2025.

The divestiture of the Apps Business, completed on June 30, 2025, for $715.6 million, is a strategic move to streamline operations and allow AppLovin to focus its resources on its core advertising solutions. Following the divestiture, the company now operates as a single reportable segment.

AppLovin is generating substantial operating cash flow, with $1.6 billion for the six months ended June 30, 2025. The company has also actively engaged in share repurchases, repurchasing $1.3 billion of Class A common stock during the same period, demonstrating a commitment to returning capital to shareholders.

Profitability has significantly improved. Net income from continuing operations for the three months ended June 30, 2025, was $771.9 million, up from $301.0 million in the prior year. Adjusted EBITDA also saw substantial growth, reaching $1.02 billion with a strong margin of 80.9%.