Q2 25 EPS
$2.39
BEAT +3.24%
Est. $2.32
Q2 25 Revenue
$1.26B
BEAT +3.15%
Est. $1.22B
vs S&P Since Q2 25
+10.3%
BEATING MARKET
APP +24.3% vs S&P +14.0%
Market Reaction
Did APP Beat Earnings? Q2 2025 Results
AppLovin capped a transformative second quarter with beats on both the top and bottom lines, reporting revenue of $1.26 billion, up 77% year over year and ahead of the $1.22 billion consensus by 3.15%, while diluted EPS of $2.39 cleared the $2.31 est… Read more AppLovin capped a transformative second quarter with beats on both the top and bottom lines, reporting revenue of $1.26 billion, up 77% year over year and ahead of the $1.22 billion consensus by 3.15%, while diluted EPS of $2.39 cleared the $2.31 estimate by 3.24%. The standout driver was the company's advertising technology platform, which powered net income to $820 million and lifted the net margin to 65% from 44% a year ago, with adjusted EBITDA reaching $1.02 billion at an 81% margin. Equally significant was the June 30 completion of the Apps business divestiture to Tripledot Studios for $400 million in cash plus roughly 20% equity, a move that leaves AppLovin as a pure-play ad tech company, a strategic pivot analysts have highlighted as central to its long-term valuation thesis. Free cash flow of $768 million underscored the capital-light model, and management guided Q3 revenue of $1.32 billion to $1.34 billion with the same 81% adjusted EBITDA margin, signaling confidence in sustained momentum heading into the back half of 2025.
Key Takeaways
- • 77% year-over-year revenue growth driven by advertising platform
- • Adjusted EBITDA margin expansion to 81% from 72% year over year
- • Net income margin expanded to 65% from 44% in Q2 2024
- • Significant reduction in operating expenses including R&D down 56% and sales & marketing down 30% year over year
- • Stock-based compensation reduced to $34.6 million from $93.6 million year over year
APP YoY Financials
Q2 2025 vs Q2 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% |