01—Abstract
Summary
Summary of the 8-K filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
AppLovin reported strong third quarter 2025 results, with revenue of $1.405 billiona, up 68% year over year from $835 million, and net income of $836 million, up 92% from $434 million.
Adjusted EBITDA rose 79% to $1.158 billionb, implying an Adjusted EBITDA margin of roughly 82%, up from 77% a year earlier. Nine-month revenue reached $3.823 billion (up 72%) and nine-month net income reached $2.231 billion (up 128%). Growth was broad-based across the top and bottom line, and the company's operating leverage is evident, with operating income of $1.079 billion versus $534 million in the prior-year quarter.
Cash generation was robust. Operating cash flow and Free Cash Flow were both about $1.05 billionc in the quarter. Management returned significant capital, repurchasing and withholding 1.3 million Class A shares for $571 million during the quarter.
The board also added $3.2 billiond to the share repurchase authorization, bringing the remaining authorization to $3.3 billion as of end-October. Shares outstanding fell to 338.5 million at September 30, 2025, from 340.0 million at year-end 2024. Cash and equivalents rose to $1.67 billion, and long-term debt was roughly $3.5 billion.
Fourth quarter 2025 guidance calls for revenue of $1.570 to $1.600 billion and Adjusted EBITDA of $1.290 to $1.320 billion, implying an 82% to 83% margin. Investors should note that net income in the nine months was inflated by a $106 million gain on divestiture, while a $189 million goodwill impairment and a $99 million loss from discontinued operations weighed on results. Adjusted EBITDA is a non-GAAP measure, and management did not provide GAAP guidance equivalents.
02—Key points
Key Highlights
- Q3 2025 revenue of $1.405 billion, up 68% YoY; nine-month revenue of $3.823 billion, up 72%
- Q3 2025 net income of $836 million, up 92% YoY; Adjusted EBITDA of $1.158 billion, up 79% with an 82% margin (vs. 77% a year ago)
- Operating income more than doubled to $1.079 billion from $534 million, indicating strong operating leverage
- Free Cash Flow of $1.049 billion in Q3 2025, nearly double the $545 million in Q3 2024
- Share repurchase authorization increased by $3.2 billion to $3.3 billion remaining as of end-October 2025; $571 million repurchased and withheld in Q3
- Q4 2025 guidance: revenue of $1.570 to $1.600 billion and Adjusted EBITDA of $1.290 to $1.320 billion
- Nine-month results include a $106 million divestiture gain offset by a $189 million goodwill impairment and a $99 million loss from discontinued operations
03—Questions
Frequently Asked Questions
How strong was AppLovin's growth in Q3 2025?
Revenue grew 68% year over year to $1.405 billion, net income rose 92% to $836 million, and Adjusted EBITDA grew 79% to $1.158 billion. Growth in profits outpaced revenue growth, reflecting higher margins.
What does the Q4 2025 guidance imply for the business?
Guidance of $1.570 to $1.600 billion in revenue and $1.290 to $1.320 billion in Adjusted EBITDA implies continued sequential growth and an Adjusted EBITDA margin of 82% to 83%, consistent with the third quarter's level. Management did not provide GAAP equivalents for these non-GAAP metrics.
How is AppLovin returning capital to shareholders?
The company repurchased and withheld 1.3 million Class A shares for $571 million in Q3 2025 and increased its repurchase authorization by $3.2 billion, bringing remaining capacity to $3.3 billion. Share count declined modestly to 338.5 million at September 30, 2025. Management notes that repurchases depend on legal requirements, market conditions, and other factors.
Are there any one-time items affecting the nine-month results?
Yes. Nine-month net income of $2.231 billion includes a $106 million gain on divestiture and is offset by a $189 million goodwill impairment and a $99 million loss from discontinued operations. Net income from continuing operations was $2.331 billion, so investors should focus on continuing operations for underlying trends.
How strong is AppLovin's balance sheet and cash position?
Cash and equivalents rose to $1.67 billion from $697 million at year-end 2024, and total stockholders' equity increased to $1.47 billion. Long-term debt was about $3.51 billion, so leverage remains significant even as cash generation strengthens.
04—Continue