AppLovin (APP) Q3 2025 Financial Results Summary
On November 5, 2025, AppLovin Corporation (NASDAQ: APP) announced its financial results for the quarter ended September 30, 2025. Below is a summary of the key financial metrics and highlights from the report.
Third Quarter 2025 Financial Highlights:
- Revenue:
- Q3 2025: $1,405 million
- Q3 2024: $835 million
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Growth: 68% increase compared to Q3 2024.
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Net Income:
- Q3 2025: $836 million
- Q3 2024: $434 million
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Growth: 92% increase compared to Q3 2024.
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Net Income from Continuing Operations:
- Q3 2025: $836 million
- Q3 2024: $433 million
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Growth: 93% increase compared to Q3 2024.
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Adjusted EBITDA:
- Q3 2025: $1,158 million
- Q3 2024: $647 million
- Growth: 79% increase compared to Q3 2024.
Additional Financial Highlights:
- Free Cash Flow:
- Q3 2025: $1.05 billion.
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Q3 2024: $545 million (noted growth).
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Repurchase of Shares:
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AppLovin repurchased and withheld 1.3 million shares of its Class A common stock at a cost of $571 million during Q3 2025.
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Share Repurchase Authorization:
- The board of directors increased the share repurchase authorization by $3.2 billion, bringing the total remaining authorization to $3.3 billion as of the end of October 2025.
Balance Sheet Highlights (as of September 30, 2025):
- Total Assets: $6,343 million
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Increase from $5,869 million as of December 31, 2024.
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Total Liabilities: $4,869 million
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Increase from $4,779 million as of December 31, 2024.
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Stockholders’ Equity:
- $1,473 million
- Increase from $1,089 million as of December 31, 2024.
Nine Month Metrics (ended September 30, 2025):
- Revenue:
- Nine Months 2025: $3,823 million
- Nine Months 2024: $2,225 million
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Growth: 72% increase.
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Net Income:
- Nine Months 2025: $2,231 million
- Nine Months 2024: $981 million
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Growth: 128% increase.
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Adjusted EBITDA:
- Nine Months 2025: $3,114 million
- Nine Months 2024: $1,642 million
- Growth: 90% increase.
Guidance for Fourth Quarter 2025:
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Expected Revenue: Between $1,570 million and $1,600 million.
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Expected Adjusted EBITDA: Between $1,290 million and $1,320 million.
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Expected Adjusted EBITDA Margin: Between 82% and 83%.
Summary
Overall, AppLovin demonstrated significant growth in both revenue and net income for Q3 2025 compared to the same period in the previous year, alongside robust performance in free cash flow. The company continues to show confidence in its future, evidenced by the substantial increase in share repurchase authority.
Here are the extracted tables in Markdown format:
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2025 | 2024 | September 30, 2025 | 2024 | |
| Revenue | $1,405,045 | $835,186 | $3,822,773 | $2,224,571 |
| Costs and expenses: | ||||
| Cost of revenue | 174,855 | 120,919 | 481,611 | 367,220 |
| Sales and marketing | 48,575 | 62,984 | 154,875 | 190,859 |
| Research and development | 43,852 | 80,776 | 144,290 | 268,847 |
| General and administrative | 58,756 | 36,208 | 165,326 | 115,023 |
| Total costs and expenses | 326,038 | 300,887 | 946,102 | 941,949 |
| Income from operations | 1,079,007 | 534,299 | 2,876,671 | 1,282,622 |
| Other income (expense): | ||||
| Interest expense | -51,429 | -74,937 | -155,726 | -223,280 |
| Other income (expense), net | -6,632 | 8,367 | -21,389 | 17,873 |
| Total other expense, net | -58,061 | -66,570 | -177,115 | -205,407 |
| Income before income taxes | 1,020,946 | 467,729 | 2,699,556 | 1,077,215 |
| Provision for income taxes | 185,401 | 34,656 | 368,617 | 83,803 |
| Net income from continuing operations | 835,545 | 433,073 | 2,330,939 | 993,412 |
| Income (loss) from discontinued operations, net of income taxes | — | 1,347 | -99,444 | -12,840 |
| Net income | $835,545 | $434,420 | $2,231,495 | $980,572 |
| Net income (loss) per share attributed to Class A and Class B common stockholders – Basic: | ||||
| Continuing operations | $2.47 | $1.29 | $6.87 | $2.95 |
| Discontinued operations | — | — | -0.29 | -0.04 |
| Basic net income per share | $2.47 | $1.29 | $6.58 | $2.91 |
| Net income (loss) per share attributed to Class A and Class B common stockholders – Diluted: | ||||
| Continuing operations | $2.45 | $1.24 | $6.80 | $2.85 |
| Discontinued operations | — | 0.01 | -0.29 | -0.04 |
| Diluted net income per share | $2.45 | $1.25 | $6.51 | $2.81 |
| Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders: | ||||
| Basic | 338,531 | 336,931 | 338,990 | 336,167 |
| Diluted | 340,974 | 348,225 | 342,668 | 348,273 |
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $1,666,899 | $697,030 |
| Accounts receivable, net | 1,603,953 | 1,283,335 |
| Prepaid expenses and other current assets | 216,714 | 140,470 |
| Current assets of discontinued operations | — | 191,355 |
| Total current assets | 3,487,566 | 2,312,190 |
| Property and equipment, net | 130,815 | 159,970 |
| Goodwill | 1,540,889 | 1,457,685 |
| Intangible assets, net | 421,868 | 472,851 |
| Other non-current assets | 761,897 | 529,314 |
| Non-current assets of discontinued operations | — | 937,249 |
| Total assets | $6,343,035 | $5,869,259 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $516,438 | $504,302 |
| Accrued and other current liabilities | 510,947 | 379,004 |
| Deferred revenue | 45,748 | 37,053 |
| Current liabilities of discontinued operations | — | 137,113 |
| Total current liabilities | 1,073,133 | 1,057,472 |
| Long-term debt | 3,511,965 | 3,508,983 |
| Other non-current liabilities | 284,017 | 211,572 |
| Non-current liabilities of discontinued operations | — | 1,414 |
| Total liabilities | 4,869,115 | 4,779,441 |
| Stockholders’ equity: | ||
| Preferred stock, $0.00003 par value—100,000 shares authorized, no shares issued and outstanding as of September 30, 2025 and December 31, 2024 | — | — |
| Class A, Class B, and Class C Common Stock, $0.00003 par value—1,850,000 (Class A 1,500,000, Class B 200,000, Class C 150,000) shares authorized, 338,533 (Class A 308,176, Class B 30,358, Class C nil) and 340,042 (Class A 309,353, Class B 30,689, Class C nil) shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 11 | 11 |
| Additional paid-in capital | 427,998 | 593,699 |
| Accumulated other comprehensive loss | -2,659 | -103,096 |
| Retained earnings | 1,048,570 | 599,204 |
| Total stockholders’ equity | 1,473,920 | 1,089,818 |
| Total liabilities and stockholders’ equity | $6,343,035 | $5,869,259 |
