Applovin 2025 Q3 Earnings Surpasses Expectations with 92.3% Net Income Growth

Applovin (APP) reported its fiscal 2025 Q3 earnings on Nov 6, 2025, delivering results that exceeded expectations. The company’s revenue and earnings surged significantly, with net income jumping 92.3% year-over-year. Management raised Q4 revenue guidance, signaling sustained momentum despite regulatory scrutiny and macroeconomic challenges.

Revenue

Applovin’s total revenue rose 68.2% to $1.41 billion in Q3 2025, surpassing the $1.34 billion analyst estimate. The Software Platform segment, driven by AI-powered ad targeting, contributed the lion’s share of growth, while the Apps segment benefited from strong user engagement and monetization. This performance reflects the company’s ability to scale its advertising solutions across mobile developers and e-commerce verticals.

Earnings/Net Income

Earnings per share (EPS) surged 91.5% to $2.47, outpacing the $2.38 consensus. Net income reached $835.54 million, a record high for the quarter and a 92.3% increase from $434.42 million in Q3 2024. This underscores Applovin’s operational efficiency and margin expansion, particularly in its higher-margin Software Platform division.

Price Action

Applovin’s stock edged up 1.16% in the latest trading day but declined 2.24% for the week. Month-to-date, shares climbed 5.12%, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review

The strategy of buying AppLovin shares on earnings raise announcements and holding for 30 days delivered strong returns, though volatility was notable. A backtested analysis revealed an average quarterly return of 25.5%, with cumulative returns growing at a 22.3% CAGR over three years. However, peak drawdowns of 20.1% highlight the need for disciplined risk management. Investors should weigh earnings-driven momentum against market sensitivity to guidance shifts and regulatory risks.

CEO Commentary

CEO Adam Foroughi credited Applovin’s Q3 success to AI-driven ad optimization and expanding monetization efficiency. He emphasized strategic investments in AI targeting and emerging markets while acknowledging macroeconomic and regulatory headwinds. Foroughi reiterated a focus on R&D to solidify leadership in mobile advertising, expressing cautious optimism for 2025.

Guidance

Applovin expects Q4 2025 revenue to grow 12–15% year-over-year, exceeding the $1.55 billion Wall Street forecast. The company also raised its share buyback authorization by $3.2 billion, signaling confidence in its valuation and long-term prospects.

Additional News

Applovin expanded its share repurchase program by $3.2 billion, boosting total authorization to $3.3 billion. This follows $571 million in buybacks during Q3, reflecting management’s bullish stance. Meanwhile, the company faces an SEC investigation into data-collection practices, which may impact investor sentiment. Analysts adjusted price targets upward, with Wedbush raising its target to $800 and J.P. Morgan to $650, citing Applovin’s earnings resilience and strategic initiatives.