FinancialAppLovin

AppLovin Financial Update: 3Q 25

9 pages~11 min full read

Global

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Key insights

6 takeaways · ~2 min read

01
AppLovin reported $1.41 billion in revenue for 3Q 2025, a 68% increase year-over-year.See it on page 5
02
Adjusted EBITDA reached $1.16 billion with an 82% margin, representing a 79% growth compared to 3Q 2024.See it on page 8
03
Net income from continuing operations hit $836 million, resulting in a 59% net margin for the quarter.See it on page 2
04
Net revenue per installation rose by 75%, effectively offsetting a 1% decline in total installations.See it on page 2
05
The company generated $1.05 billion in free cash flow during the quarter and held $1.67 billion in cash and cash equivalents as of September 30, 2025.See it on page 7
06
Year-to-date capital allocation through September 2025 included $1.77 billion for common stock repurchases and $687 million for debt repayment.See it on page 6

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Summary

AppLovin’s financial results for the third quarter of 2025 demonstrate significant year-over-year growth across key performance metrics. The company reported revenue of $1.41 billion, representing a 68% increase compared to the third quarter of 2024. This growth was supported by a 75% rise in net revenue per installation, despite a 1% decline in total installations. The company’s net income from continuing operations reached $836 million, yielding a net margin of 59%.

Profitability and cash generation remained strong throughout the period. Adjusted EBITDA grew by 79% year-over-year to $1.16 billion, achieving an 82% margin. The company also reported robust cash flow, generating $1.05 billion in net cash from operating activities and $1.05 billion in free cash flow. These non-GAAP measures are utilized by management to assess core operating performance, facilitate internal planning, and provide investors with a consistent view of financial trends, though they exclude certain expenses necessary for business operations.

The financial data reflects a period of sustained operational efficiency and capital management. As of September 30, 2025, the company held $1.67 billion in cash and cash equivalents. During the nine-month period ending in September 2025, the company directed significant capital toward financing activities, including $1.77 billion for common stock repurchases and $687 million for debt repayment. These results highlight a focus on scaling revenue while maintaining high margins and returning value to shareholders, consistent with the company's broader financial strategy.