Applovin 2025 Q3 Earnings Strong Performance as Net Income Surges 92.3%

Applovin (NASDAQ:APP) reported its fiscal 2025 Q3 earnings on Nov 5, 2025, delivering results that exceeded revenue expectations and raising guidance. The company’s total revenue surged 68.2% to $1.41 billion, while net income more than doubled to $835.54 million. Management highlighted operational leverage and AI-driven platform enhancements as key growth drivers.

Revenue

The total revenue of Applovin increased by 68.2% to $1.41 billion in 2025 Q3, up from $835.19 million in 2024 Q3. This reflects robust demand for the company’s advertising and software solutions, particularly in gaming and e-commerce verticals.

Earnings/Net Income

Applovin’s EPS rose 91.5% to $2.47 in 2025 Q3 from $1.29 in 2024 Q3, marking continued earnings growth. Meanwhile, the company’s profitability strengthened with net income of $835.54 million in 2025 Q3, marking 92.3% growth from $434.42 million in 2024 Q3. This performance underscores the company’s ability to scale efficiently while maintaining high-margin operations.

Post-Earnings Price Action Review

Following the earnings report, Applovin’s stock price edged up 1.16% during the latest trading day but declined 2.24% during the most recent full trading week. Month-to-date, the stock climbed 5.12%, reflecting mixed short-term sentiment. Analysts remain cautiously optimistic, with price targets ranging from $500 to $750 and a consensus “Moderate Buy” rating.

CEO Commentary

Adam Foroughi emphasized Q3’s strong performance, driven by gaming advertising growth and the MAX platform’s expansion. He highlighted a 50% week-over-week spend increase from self-service advertisers, signaling confidence in scaling the platform. Strategic priorities include refining onboarding flows, integrating AI agents for seamless advertiser experiences, and testing generative AI for ad creatives to boost user response rates. Foroughi stressed institutional adoption of the Axon Ads platform through paid marketing, aiming to scale advertisers without relying on a large sales force. Despite heightened scrutiny around data privacy, he expressed optimism about leveraging AI and expanding advertiser diversity to drive long-term growth.

Guidance

Matt Stumpf (CFO) outlined Q4 2025 revenue guidance of $1.570–$1.6 billion (12–14% sequential growth) and adjusted EBITDA of $1.290–$1.320 billion (82–83% margin). Foroughi reiterated confidence in execution, citing operational leverage and model improvements to sustain elevated growth as the self-service platform broadens access in 2026.

Additional News

Applovin expanded its share buyback program by $3.2 billion, bringing total authorization to $3.3 billion as of October 2025. The company repurchased $571 million of its common stock during Q3, reflecting strong liquidity and a commitment to shareholder returns. Meanwhile, CEO Adam Foroughi emphasized strategic investments in AI-driven ad targeting and generative AI for ad creatives to enhance user engagement. Analysts, including those from Morgan Stanley and Wedbush, revised price targets upward, citing the company’s margin expansion and long-term growth potential in e-commerce advertising.