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Jun 30
AppLovin Q2 2025 Earnings Report
AppLovin reported strong Q2 2025 results with significant year-over-year growth in revenue and profitability.
Key Takeaways
AppLovin delivered an exceptional quarter, achieving record revenue and net income, supported by the successful divestiture of its Apps business and strong operational performance.
Revenue reached $1.26 billion, up from $711 million a year earlier.
Net income more than doubled to $820 million in the quarter.
Adjusted EBITDA surpassed $1 billion, with an 81% margin.
Sale of Apps business to Tripledot Studios closed for $400 million.
AppLovin
AppLovin
Forward Guidance
AppLovin expects continued strong performance in Q3 2025, with revenue between $1.32B and $1.34B and adjusted EBITDA between $1.07B and $1.09B.
Positive Outlook
- Q3 revenue guidance projects sequential growth.
- High adjusted EBITDA margin of 81% expected to continue.
- Strong cash flow supports operational flexibility.
- Momentum following the Apps business divestiture.
- Share repurchases continue, reflecting confidence in business.
Challenges Ahead
- Uncertainty remains due to variability in reconciling items.
- No GAAP guidance provided for EPS or net income.
- Competitive advertising ecosystem could affect growth.
- Reduced R&D spend may raise concerns on long-term innovation.
- Stock-based compensation continues to be a significant expense.