AppLovin Form 10-Q: Q2 2025

Key insights

7 takeaways · ~3 min read

01
AppLovin completed the sale of its Apps Business on June 30, 2025, for $715.6 million, comprising $430.6 million in cash and 596,869,142 ordinary shares of Tripledot (valued at $285.0 million), representing approximately 22% of Tripledot's outstanding shares.
02
Net income attributable to Class A and Class B common stockholders for Q2 2025 was $819.3 million, a significant increase from $309.9 million in Q2 2024.
03
Basic net income per share for Q2 2025 was $2.42, up from $0.92 in Q2 2024.
04
Adjusted EBITDA for Q2 2025 was $1,018.3 million, with an Adjusted EBITDA margin of 80.9%, compared to $511.2 million and 71.9% in Q2 2024.
05
Research and development expenses decreased by $55.1 million (56%) in Q2 2025 compared to Q2 2024, primarily due to a reduction in personnel-related expenses from decreased stock-based compensation.
06
General and administrative expenses increased by $16.3 million (42%) in Q2 2025 compared to Q2 2024, driven by a $10.5 million increase in bad debt expense and a $6.0 million increase in professional services costs.
07
The company faces risks from third-party platform policy changes (e.g., Apple App Store, Google Play Store), particularly concerning advertising solutions, fees, and data usage, which could adversely affect its business.