AppLovin Reports Q3 2025 Revenue Beat and Strong Profit Growth

AppLovin (APP.US) announced its financial results for the third quarter of 2025, reporting revenue of $1.405 billion, significantly surpassing analyst estimates of $1.342 billion. The company also reported a net income of $835.5 million, marking a substantial 92% year-over-year increase from the $434.4 million reported in Q3 2024. Diluted EPS for the quarter was $2.45, exceeding analyst estimates of $2.37.

Strong Adjusted EBITDA Growth

AppLovin demonstrated robust profitability, with Adjusted EBITDA reaching $1.158 billion in Q3 2025, a 79% increase compared to $647 million in the same period last year. The Adjusted EBITDA margin also expanded to 82%, up from 77% in Q3 2024, highlighting enhanced operational efficiency.

Capital Allocation and Shareholder Returns

The company generated $1.05 billion in net cash from operating activities and free cash flow during Q3 2025. In a move to return value to shareholders, AppLovin repurchased 1.3 million shares of its Class A common stock for a total cost of $571 million. Furthermore, the board of directors increased the share repurchase authorization by an incremental $3.2 billion, bringing the total remaining authorization to $3.3 billion as of the end of October.

Fourth Quarter 2025 Financial Guidance

For the fourth quarter of 2025, AppLovin anticipates continued growth, projecting revenue between $1.570 billion and $1.600 billion. Adjusted EBITDA is expected to range from $1.290 billion to $1.320 billion, with an Adjusted EBITDA margin of 82% to 83%. This guidance reflects management's confidence in sustained performance and profitability.