01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb 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.
02—Key points
Key Highlights
- Revenue 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.
- Net 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.
- Completed 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.
- Significant increase in cash and cash equivalents to $1.67 billion as of September 30, 2025, from $697.0 million as of December 31, 2024.
- Strong operational cash flow generation, with $2.7 billion provided by operating activities for the nine months ended September 30, 2025.
- Aggressive share repurchase program, with $1.8 billion spent on repurchasing Class A common stock during the first nine months of 2025.
- Adjusted EBITDA increased significantly to $1.16 billion for Q3 2025 and $3.11 billion for the nine-month period, reflecting strong operational profitability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, AppLovin Corp kept $0.59.
- Revenue$1.41B100.0%
- Cost of revenue−$174.9M12.4%
- Gross profit$1.23B87.6%
- Operating costs−$151.2M10.8%
- Operating income$1.08B76.8%
- Interest, other & tax−$243.5M17.3%
- Net income$835.5M59.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.41B$835.19M | +68.2% |
| Cost of Revenue | $174.85M$120.92M | +44.6% |
| Gross Profit | $1.23B$714.27M | +72.2% |
| R&D Expenses | $43.85M$80.78M | −45.7% |
| Operating Expenses | $326.04M$300.89M | +8.4% |
| Operating Income | $1.08B$534.30M | +101.9% |
| Net Income | $835.54M$434.42M | +92.3% |
| EPS (Basic) | $2.47$1.29 | +91.5% |
| EPS (Diluted) | $2.45$1.25 | +96.0% |
| Shares Outstanding (Basic) | 338.53M336.93M | +0.5% |
| Shares Outstanding (Diluted) | 340.97M348.23M | −2.1% |
05—Questions
Frequently Asked Questions
What was the impact of the Apps Business divestiture on AppLovin's financial results?
The divestiture of the Apps Business, completed on June 30, 2025, resulted in the business being classified as discontinued operations. This strategic move streamlined AppLovin into a single reportable segment focused on advertising solutions. The divestiture generated a pre-tax gain of $106.2 million for the nine months ended September 30, 2025, and simplified the company's financial reporting.
How did AppLovin's revenue performance trend during the reporting period?
AppLovin demonstrated substantial revenue growth. For the three months ended September 30, 2025, revenue increased by 68% year-over-year to $1.4 billion. For the nine months ended September 30, 2025, revenue grew by 72% year-over-year to $3.8 billion. This growth was primarily driven by improved performance in the Axon Advertising segment, where net revenue per installation increased significantly.
What is the company's current liquidity position and cash flow generation capability?
AppLovin's liquidity position is strong, with cash and cash equivalents totaling $1.67 billion as of September 30, 2025, a significant increase from $697.0 million at the end of 2024. The company generated $2.7 billion in net cash from operating activities for the nine months ended September 30, 2025, indicating robust cash flow generation. This strong financial footing supports ongoing operations, reinvestment, and capital allocation strategies like share repurchases.
What significant capital allocation activities did AppLovin undertake?
During the nine months ended September 30, 2025, AppLovin actively engaged in share repurchases, spending $1.8 billion to repurchase Class A common stock. The company also has substantial availability under its revolving credit facility ($1.0 billion as of September 30, 2025), providing further financial flexibility.
06—Continue