AppLovin Q3 2025 Earnings: Ad Platform Drives 68% Revenue Growth, Profit Nearly Doubles
AppLovin's ad-platform business posted 68% revenue growth and nearly doubled profit, with strong cash generation and upbeat guidance for the next quarter.
| Q3 2025 | Reported |
|---|---|
| EPS | $2.45 |
| Revenue | $1.41B |
Figures as reported by the company to the SEC for the quarter ended September 30, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue for the quarter came in at $1.4 billion, up 68% from a year earlier. The growth reflects AppLovin’s shift into a focused advertising-technology company after it sold off its mobile apps business earlier in 2025.
- Net income nearly doubled year over year, and profitability metrics point to a highly efficient business: over the trailing year, AppLovin converted about 88 cents of every revenue dollar into gross profit and kept roughly 64 cents as net profit, margins that are unusually high for an advertising company.
- Free cash flow — the cash left over after running the business — rose 92% to roughly $1.05 billion for the quarter, matching net income almost dollar for dollar, a sign the reported profits are backed by real cash rather than accounting adjustments.
- Management highlighted the rollout of AXON Ads Manager, a new self-service tool that lets advertisers set up and run ad campaigns directly on AppLovin’s platform without a dedicated sales contact; CEO Adam Foroughi called it “the foundation for our next decade of growth.”
- For the current quarter, the company guided to revenue of $1.57 billion to $1.6 billion and adjusted operating margins of roughly 82% to 83%, implying continued double-digit growth from the September quarter.
- Return on equity over the trailing year topped 220%, an unusually high figure that reflects both strong profitability and a relatively small equity base after years of share buybacks, rather than a typical capital-heavy business.
Q3 2025 in context
| Metric | Sep 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $1.4B | $835M | +68.2% |
| Net income | $836M | $434M | +92.3% |
| Diluted EPS | $2.45 | $1.25 | +96.0% |
| Gross margin | 87.6% | 85.5% | +2.0 pts |
| Operating margin | 76.8% | 64.0% | +12.8 pts |
| Net margin | 59.5% | 52.0% | +7.5 pts |
Figures for the quarter ended Sep 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
Applovin Corp closed at $608.68 on Nov 4, 2025, the last session before the report, and at $621.36 on Nov 6, 2025, the first session after it — +2.1% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call · fundamentals table