Q1 25 EPS
$1.67
MISS 14.58%
Est. $1.96
Q1 25 Revenue
$1.48B
BEAT +7.65%
Est. $1.38B
vs S&P Since Q1 25
+6.1%
BEATING MARKET
APP +33.7% vs S&P +27.5%
Market Reaction
Did APP Beat Earnings? Q1 2025 Results
AppLovin posted a mixed but strategically pivotal first quarter for 2025, delivering a top-line beat while falling short on the bottom line as a $188.94 million goodwill impairment charge clouded otherwise exceptional operating momentum. Revenue clim… Read more AppLovin posted a mixed but strategically pivotal first quarter for 2025, delivering a top-line beat while falling short on the bottom line as a $188.94 million goodwill impairment charge clouded otherwise exceptional operating momentum. Revenue climbed 40.3% year-over-year to $1.48 billion, topping the $1.38 billion consensus by 7.65%, yet earnings per diluted share of $1.67 missed the $1.96 estimate by 14.58%, largely due to that impairment tied to the company's pending divestiture of its mobile gaming business to Tripledot Studios for $400 million. The real story, however, was the advertising engine underneath: the Advertising segment surged 71% to $1.16 billion with an 81% Adjusted EBITDA margin, helping lift total Adjusted EBITDA to $1.01 billion, up 83% year-over-year. With the Apps segment sale expected to close this quarter, AppLovin guided Q2 advertising revenue of $1.20 billion to $1.22 billion at that same 81% margin, signaling confidence in its sharpened focus on high-margin ad technology, a pivot that has renewed bullish sentiment among investors watching the stock's recent recovery.
Key Takeaways
- • Advertising revenue surged 71% YoY to $1.159 billion, driven by AI-powered marketing platform expansion
- • Advertising Adjusted EBITDA margin expanded to 81% from 73% YoY
- • Total Adjusted EBITDA grew 83% YoY to $1.005 billion
- • Free cash flow more than doubled YoY to $826 million
- • Net income grew 144% YoY
APP YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
APP Revenue by Segment
With YoY comparisons, source: SEC Filings
APP Earnings Trends
APP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
APP EPS Trend
Earnings per share: estimate vs actual
APP Revenue Trend
Quarterly revenue: estimate vs actual
APP Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 25 BEAT FY | $3.11 | $3.24 | +4.18% | $1.66B | +3.35% |
| FY Full Year | $9.36 | $9.75 | +4.22% | $5.48B | -4.72% |
| Q3 25 BEAT | $2.39 | $2.45 | +2.57% | $1.41B | +4.69% |
| Q2 25 BEAT | $2.32 | $2.39 | +3.24% | $1.26B | +3.15% |
| Q1 25 MISS | $1.96 | $1.67 | -14.58% | $1.48B | +7.65% |
| Q1 23 | $0.07 | — | — | $715.4M | +3.16% |