Summary
AppLovin Corporation (APP) reported a strong performance for the nine months ended September 30, 2025, with significant revenue growth driven by improved performance in its Axon Advertising segment. The company successfully divested its Apps Business on June 30, 2025, classifying it as discontinued operations, which streamlined its business model into a single reportable segment focused on advertising solutions. Financially, AppLovin demonstrated robust profitability and strong cash flow generation. Net income from continuing operations for the nine months was $2.33 billion, a substantial increase from $993.4 million in the prior year period. The company also reported substantial net cash provided by operating activities of $2.7 billion for the same period, alongside significant share repurchases. The balance sheet remains solid with $1.67 billion in cash and cash equivalents as of September 30, 2025.
Financial Highlights
48 data points| Revenue | $1.41B |
| Cost of Revenue | $174.85M |
| Gross Profit | $1.23B |
| R&D Expenses | $43.85M |
| Operating Expenses | $326.04M |
| Operating Income | $1.08B |
| Net Income | $835.54M |
| EPS (Basic) | $2.47 |
| EPS (Diluted) | $2.45 |
| Shares Outstanding (Basic) | 338.53M |
| Shares Outstanding (Diluted) | 340.97M |
Key Highlights
- 1Revenue surged by 68% year-over-year to $1.4 billion for the third quarter of 2025, and by 72% to $3.8 billion for the first nine months of 2025, primarily driven by improved Axon Advertising performance.
- 2Net income from continuing operations more than doubled year-over-year, reaching $835.5 million for Q3 2025 and $2.33 billion for the nine-month period.
- 3Completed the divestiture of the Apps Business on June 30, 2025, resulting in a gain of $106.2 million and simplifying the company's operational structure to a single reportable segment.
- 4Significant increase in cash and cash equivalents to $1.67 billion as of September 30, 2025, from $697.0 million as of December 31, 2024.
- 5Strong operational cash flow generation, with $2.7 billion provided by operating activities for the nine months ended September 30, 2025.
- 6Aggressive share repurchase program, with $1.8 billion spent on repurchasing Class A common stock during the first nine months of 2025.
- 7Adjusted EBITDA increased significantly to $1.16 billion for Q3 2025 and $3.11 billion for the nine-month period, reflecting strong operational profitability.