AppLovin Q2 2025 Earnings: Growth, Strategy, and What Comes Next
AppLovin delivered a strong Q2 2025, showcasing rapid growth and strategic clarity despite a slight revenue miss. Here are the key highlights and insights to guide stakeholders and readers:
Key Financial Highlights – Q2 2025
| Metric | Value |
| Revenue | $1.26 B (↑77% YoY) |
| Net Income | $820 M (↑164% YoY) |
| Adjusted EBITDA | $1.02 B (81% margin) |
| Free Cash Flow | $768 M |
| Share Buyback | $341 M (0.9M shares repurchased) |
| Apps Business Sale | $400 M cash + 20% Tripledot equity |
| Q3 2025 Revenue Guidance | $1.32 B – $1.34 B |
| Ad Platform Outlook | Axon Ads Manager, elevated analyst targets |
Revenue and Profit Soar Despite Slight Miss
AppLovin reported $1.26 billion in Q2 revenue, reflecting a 77% year-over-year increase. This impressive growth, however, narrowly missed Wall Street’s estimate of $1.28 billion.
Meanwhile, the company posted a net income of $820 million, up 164% YoY, while Adjusted EBITDA nearly doubled to $1.02 billion, achieving a stellar 81% margin.
Robust Cash Flow & Strategic Divestment
Operationally, AppLovin generated $772 million in net cash from operations and $768 million in free cash flow in the quarter. The company also repurchased 0.9 million shares for $341 million, signaling investor confidence.
Part of its strategic shift included the sale of its Apps business to Tripledot Studios for $400 million in cash plus 20% equity, streamlining focus on its high-margin adtech platform
Forward Guidance & Strategic Growth
AppLovin issued Q3 2025 revenue guidance between $1.32 billion and $1.34 billion, paired with a consistent Adjusted EBITDA margin of 81%.
The company is doubling down on its ad platform with the launch of Axon Ads Manager, and analysts have responded with bullish expectations. BTIG raised the price target to $547, citing the new ad platform’s strong positioning in the seasonal advertising market.
Market Reaction & Analyst Sentiment
Despite these strong metrics, AppLovin’s stock slipped 2–7% in after-hours trading, as investors digested the revenue miss and modest buybacks. Still, analyst sentiment remains optimistic, with BTIG maintaining a “Top Pick” stance.
