Key insights
7 takeaways · ~3 min read- 01The company divested its Apps Business, reclassifying its results as discontinued operations and now operates as a single segment. This divestiture impacts historical financial comparisons, with certain costs previously allocated to the Apps Business now reallocated to continuing operations.
- 02Goodwill increased from $1,457,685 thousand as of December 31, 2024, to $1,540,889 thousand as of September 30, 2025, primarily due to foreign currency translation of $83,204 thousand.
- 03Total intangible assets decreased from $472,851 thousand as of December 31, 2024, to $421,868 thousand as of September 30, 2025, driven by amortization despite increases in gross carrying value for customer relationships, developed technology, and other intangibles.
- 04Amortization expenses related to acquired intangible assets for the nine months ended September 30, 2025, were $71,799 thousand, an increase from $69,731 thousand in the same period of 2024. For the three months ended September 30, 2025, these expenses were $25,618 thousand, up from $23,291 thousand in 2024.
- 05Stock-based compensation significantly decreased, totaling $127,434 thousand for the nine months ended September 30, 2025, down from $259,905 thousand in the same period of 2024. For the three months ended September 30, 2025, it was $33,767 thousand, a substantial drop from $77,402 thousand in 2024.
- 06Net income from continuing operations for the nine months ended September 30, 2025, was 61% of revenue, an increase from 45% in the same period of 2024. For the three months ended September 30, 2025, it was 59% of revenue, up from 52% in 2024.
- 07The company is facing a securities class action lawsuit filed in late 2024, alleging materially false and misleading statements regarding its advertising solutions and financial growth, with a putative class period from November 7, 2024, through March 27, 2025.
Summary
SEC 10-Q filing for AppLovin, filed 2025-11-05.
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