Please wait

AppLovin Announces Second Quarter 2025 Financial Results


PALO ALTO – August 6, 2025 – AppLovin Corporation (NASDAQ: APP) (“AppLovin”), a leading marketing platform, today announced financial results for the quarter ended June 30, 2025 and posted a financial update on its Investor Relations website located at https://investors.applovin.com.

Second Quarter 2025 Financial Highlights:
(In millions, except percentages)
Quarter Ended June 30,Six Months Ended June 30,
20252024% Change20252024% Change
Revenue$1,259$71177 %$2,418$1,38974 %
Net Income
$820$310164 %$1,396$546156 %
Net Income from Continuing Operations$772$301156 %$1,495$560167 %
Adjusted EBITDA
$1,018$51199 %$1,956$99597 %

Additional Financial Highlights:

●Net cash from operating activities was $772 million and Free Cash Flow was $768 million for the second quarter 2025.
●During the second quarter 2025, we repurchased and withheld 0.9 million shares of our Class A common stock, for a total cost of $341 million1. At the end of 2Q 2025, we had 339 million shares of our Class A and Class B common stock outstanding.
●On June 30, 2025 we completed the sale of our Apps business to Tripledot Studios for $400 million in cash, subject to closing adjustments, and equity consideration representing approximately 20% of Tripledot’s fully-diluted equity at the time of closing. No promissory note was issued as part of the transaction. Results related to our Apps business are presented as discontinued operations in our financial statements.


Third Quarter 2025 Financial Guidance Summary:2

(In millions, except percentages)
3Q25
Low
High
Revenue$1,320$1,340
Adjusted EBITDA
$1,070$1,090
Adjusted EBITDA margin
81%81%




1Includes repurchased shares as well as withholdings upon net share settlement of vested equity awards. Total cost includes repurchase costs, including commissions and fees, as well
as cash paid in connection with tax withholding and remittance obligations upon net share settlement
2 We have not provided the forward-looking GAAP equivalents for forward-looking non-GAAP metrics, specifically Adjusted EBITDA and Adjusted EBITDA margin, or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this letter.
     1

Webcast and Conference Call
AppLovin will host a webinar today at 2:00 PM PT / 5:00 PM ET, during which management will discuss the Company’s second quarter 2025 results and provide commentary on its business performance. A question-and-answer session will follow the prepared remarks.

The webinar may be accessed on the Company’s investor relations website or via webinar registration. A replay of the webinar will also be available under the Events & Presentations section of our Investor Relations website.

About AppLovin
AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.

Contacts
Investors
David Hsiao
ir@applovin.com
Press
Emelyne Interior
press@applovin.com

Source: AppLovin Corp.


Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “going to,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include our expected financial results and guidance. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties, including changes in our plans or assumptions, which could cause actual results to differ materially from those projected. These risks include our inability to forecast our business effectively, the macroeconomic environment, fluctuations in our results of operations, our ability to execute on our operational and financial priorities, our ability to scale our business to support new users, the competitive advertising ecosystem, and our inability to adapt to emerging technologies and business models. The forward-looking statements contained in this letter are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2025. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.
     2

Non-GAAP Financial Measures
To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), this shareholder letter includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP measure can be found below.
We define Adjusted EBITDA for a particular period as net income adjusted for loss (income) from discontinued operations, net of income taxes, interest expense, other (income) expense, net (excluding certain recurring items), provision for income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange (gain) loss, stock-based compensation, transaction-related expense, restructuring costs, as well as certain other items that we believe are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.

We define Free Cash Flow as net cash provided by operating activities less purchases of property and equipment and principal payments on finance leases. We subtract both purchases of property and equipment and payment of finance leases in our calculation of Free Cash Flow because we believe these items represent our ongoing requirements for property and equipment to support our business, regardless of whether we utilize a finance lease to obtain such property or equipment.

We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and operating performance, as they are similar to measures reported by our public competitors and are regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects.

Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We use Free Cash Flow in addition to GAAP measures to help manage our business and prepare budgets and annual planning, and we believe Free Cash Flow provides useful supplemental information to help investors understand underlying trends in our business and our liquidity.

These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Free Cash Flow reflects cash flows from both of continuing and discontinued operations. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
     3

AppLovin Corporation
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)

June 30,
2025		December 31,
2024
Assets
Current assets:
Cash and cash equivalents$1,192,608 $697,030 
Accounts receivable, net1,581,679 1,283,335 
Prepaid expenses and other current assets218,402 140,470 
Current assets of discontinued operations— 191,355 
Total current assets2,992,689 2,312,190 
Property and equipment, net129,600 159,970 
Goodwill1,539,301 1,457,685 
Intangible assets, net448,179 472,851 
Other non-current assets849,728 529,314 
Non-current assets of discontinued operations— 937,249 
Total assets$5,959,497 $5,869,259 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$553,692 $504,302 
Accrued and other current liabilities495,218 379,004 
Deferred revenue44,975 37,053 
Current liabilities of discontinued operations— 137,113 
Total current liabilities1,093,885 1,057,472 
Long-term debt3,510,958 3,508,983 
Other non-current liabilities187,527 211,572 
Non-current liabilities of discontinued operations— 1,414 
Total liabilities4,792,370 4,779,441 
Stockholders’ equity:
Preferred stock, $0.00003 par value—100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025 and December 31, 2024— — 
Class A, Class B, and Class C Common Stock, $0.00003 par value—1,850,000,000 (Class A 1,500,000,000, Class B 200,000,000, Class C 150,000,000) shares authorized, 338,782,503 (Class A 308,168,962, Class B 30,613,541, Class C nil) and 340,041,739 (Class A 309,353,198, Class B 30,688,541, Class C nil) shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively
11 11 
Additional paid-in capital448,899 593,699 
Accumulated other comprehensive loss(5,149)(103,096)
Retained earnings723,366 599,204 
Total stockholders’ equity1,167,127 1,089,818 
Total liabilities and stockholders’ equity$5,959,497 $5,869,259 

     4

AppLovin Corporation
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenue$1,258,754 $711,015 $2,417,728 $1,389,385 
Costs and expenses:
Cost of revenue155,076 121,759 306,756 246,301 
Sales and marketing46,917 66,965 106,300 127,875 
Research and development44,032 99,123 100,438 188,071 
General and administrative55,047 38,746 106,570 78,815 
Total costs and expenses301,072 326,593 620,064 641,062 
Income from operations957,682 384,422 1,797,664 748,323 
Other income (expense):
Interest expense(51,409)(74,418)(104,297)(148,343)
Other income (expense), net
(22,269)7,872 (14,757)9,506 
Total other expense, net(73,678)(66,546)(119,054)(138,837)
Income before income taxes884,004 317,876 1,678,610 609,486 
Provision for income taxes
112,148 16,894 183,216 49,147 
Net income from continuing operations
771,856 300,982 1,495,394 560,339 
Income (loss) from discontinued operations, net of income taxes
47,675 8,987 (99,444)(14,187)
Net income
$819,531 $309,969 $1,395,950 $546,152 
Net income (loss) per share attributed to Class A and Class B common stockholders - Basic:
Continuing operations$2.28 $0.90 $4.41 $1.66 
Discontinued operations0.14 0.02 (0.30)(0.04)
Basic net income per share$2.42 $0.92 $4.11 $1.62 
Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted:
Continuing operations$2.26 $0.86 $4.35 $1.60 
Discontinued operations0.13 0.03 (0.29)(0.04)
Diluted net income per share$2.39 $0.89 $4.06 $1.56 
Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders:
Basic338,617,184 335,681,788 339,223,841 335,785,864 
Diluted342,194,433 347,964,201 343,528,576 348,327,848 




     5

AppLovin Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Six Months Ended June 30,
20252024
Operating Activities
Net income$1,395,950 $546,152 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization, depreciation and write-offs126,940 221,208 
Goodwill impairment188,943 — 
Stock-based compensation, excluding cash-settled awards97,026 193,977 
Gain on divestiture, net of transaction costs(106,229)— 
Other41,617 10,300 
Changes in operating assets and liabilities:
Accounts receivable(291,551)(125,185)
Prepaid expenses and other assets20,691 26,161 
Accounts payable39,040 15,453 
Accrued and other liabilities91,511 (40,760)
Net cash provided by operating activities1,603,938 847,306 
Investing Activities
Proceeds from divestiture, net of cash divested
424,702 — 
Purchase of non-marketable equity securities(18,678)(76,333)
Other investing activities(27,140)(23,658)
Net cash provided by (used in) investing activities
378,884 (99,991)
Financing Activities
Repurchases of common stock
(1,272,429)(752,224)
Payment of withholding taxes related to net share settlement
(256,650)(436,480)
Principal repayments of debt(200,000)(677,863)
Payments of licensed asset obligation(13,532)— 
Proceeds from issuance of debt200,000 1,072,330 
Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares
14,824 19,098 
Other financing activities(11,807)(10,473)
Net cash used in financing activities(1,539,594)(785,612)
Effect of foreign exchange rate on cash and cash equivalents7,969 (3,406)
Net increase (decrease) in cash and cash equivalents, including cash classified within current assets of discontinued operations
451,197 (41,703)
Less: net (decrease) in cash classified within current assets of discontinued operations
(44,381)— 
Net increase (decrease) in cash and cash equivalents495,578 (41,703)
Cash and cash equivalents at beginning of the period697,030 502,152 
Cash and cash equivalents at end of the period$1,192,608 $460,449 
     6

AppLovin Corporation
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow
(In thousands)

The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow for the periods presented:

Three Months Ended June 30,
20252024
Net cash provided by operating activities$772,226 $454,527 
Less:
Purchase of property and equipment(42)(3,928)
Principal payments of finance leases
(4,121)(5,089)
Free Cash Flow$768,063 $445,510 
Net cash provided by (used in) investing activities
$401,548 $— $(68,356)
Net cash used in financing activities$(537,377)$(361,000)
     7

AppLovin Corporation
Reconciliation of Net Income to Adjusted EBITDA
(In thousands, except percentages)

The following table provides our Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of Net Income to Adjusted EBITDA for the periods presented:


Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenue$1,258,754 $711,015 $2,417,728 $1,389,385 
Net income
819,531 309,969 1,395,950 546,152 
Net margin
65 %44 %58 %39 %
Loss (income) from discontinued operations, net of income taxes
(47,675)(8,987)99,444 14,187 
Net income from continuing operations
771,856 300,982 1,495,394 560,339 
Net margin from continuing operations
61%42%62%40%
Adjusted as follows:
Interest expense$51,409 $74,418 $104,297 $148,343 
Other (income) expense, net12,798 (8,763)4,154 (11,777)
Provision for income taxes112,148 16,894 183,216 49,147 
Amortization, depreciation and write-offs31,064 31,242 63,010 62,159 
Non-operating foreign exchange (gain) loss(1,210)412 (1,530)1,411 
Stock-based compensation34,552 93,559 93,667 182,503 
Transaction-related expense5,097 485 9,680 854 
Restructuring costs633 1,936 4,231 1,936 
Total adjustments246,491 210,183 460,725 434,576 
Adjusted EBITDA$1,018,347 $511,165 $1,956,119 $994,915 
Adjusted EBITDA margin
81 %72 %81 %72 %

     8