Live: AppLovin (APP) Beats Earnings But Shares Sink

• “We are confident we can sustain 20 % – 30 % year-over-year growth driven by just gaming.” — Adam Foroughi, CEO

• “On October 1 2025 we plan to open the AXON Ads Manager on a referral basis, perfectly timed for the holiday season.” — Foroughi

• “During the quarter, revenue increased by a very healthy 77 % from last year to approximately $1.216 billion, while adjusted EBITDA nearly doubled, achieving an 81 % margin.” — Matt Stumpf, CFO

• “Our strategy is simple: build world-class products, launch them when they meet our high bar and compound from there.” — Foroughi

• “We have one of the most lucrative financial models the world has ever seen, and we’re very good performance marketers.” — Foroughi

Applovin’s conference call starts now. You can register to listen in here.

We will be listening in to Applovin’s conference call so posts will be limited. If you leave this tab open a new post should automatically post later with our summary of the call.

We thank you for joining us today for this review of Applovin’s Q2 earnings. We’re hosting several live blogs on 24/7 Wall St., so if you’re looking for analysis of your favorite stocks make sure to come back!

AppLovin continues to trade down about 7% after hours. It’s worth noting that Unity reported before the market opened today and initially saw its shares up 10% at the open, but by midday shares were down more than 10%.

The results of Meta have likely poured lighter fluid on expectations of what AI-frst advertising stocks can deliver in the near-term.

Still, it’s interesting to see this battle where results are causing wild swings in share prices of companies in the ad space.

And now shares are testing lows again! Applovin shares are down 8% as of 4:36 p.m. ET. This is some fairly wild volatility. The company’s conference call starts in 24 minutes, we’ll see if that calms after hours jitters.

We were perplexed by the massive drop in Applovin shares. Earnings was a beat last quarter and on guidance. It’s a stock that has seen significant gains but results seemed perfectly fine. 

Shares are now down 2.5%, which seems more in line with what Applovin reported. We’ll continue monitoring news on the company.

APP | AppLovin Q2’25 Earnings Highlights:

• Adj. EPS: $2.39 [✅]; UP +168% YoY
• Revenue: $1.26B [✅]; UP +77% YoY
• Adj. Gross Margin: 81% [✅]; UP +900 bps YoY
• Net Income: $0.82B [✅]; UP +164% YoY
• Free Cash Flow: $0.77B; UP +73% YoY

Q2’25 Outlook:

• Revenue: $1.32B – $1.34B [➖]
  • Guidance reflects continued strong demand for AppLovin’s marketing platform and expected growth in user engagement.
  • Management anticipates ongoing investments in technology and marketing to drive future growth.

Q2 Segment Performance:

• Apps Revenue: $400M [➖]; [UP/DOWN]
• Marketing Solutions Revenue: $859M [➖]

Other Key Q2 Metrics:

• R&D Expenses: $44.0M [✅]; DOWN -56% YoY
• Effective Tax Rate: 12.7% (vs. 5.3% YoY)
• Cash and Cash Equivalents: $1.19B; UP +159% YoY

CEO Commentary:

• Harris K.: “Our strong performance in Q2 reflects the effectiveness of our marketing platform and our commitment to innovation. We are excited about the future and the opportunities that lie ahead.”

CFO Commentary:

• David Hsiao: “The significant growth in our revenue and net income demonstrates our ability to scale efficiently while maintaining strong margins. We remain focused on delivering value to our shareholders.”

Other Executives:

• Emelyne Interior, VP of Marketing: “The strategic initiatives we implemented are yielding positive results, and we are well-positioned to capitalize on market trends.”

Guidance for Q3 is $1.33B at the midpoint, that is above expectations of $1.3 billion.

Shares are down 12%, we’ll continue looking through earnings.

EPS of $2.39 is a beat.

Revenue of $1.26 billion is a beat.

We expect AppLovin earnings at about 4:10 p.m. ET. Shortly after that expect us to post several pieces of analysis on their earnings release.

As a reminder, all you have to do is simply leave this page open and new posts will appear automatically. 

A few weeks ago BTIG raised its price target on AppLovin to $483 from $480, reaffirming a Buy rating ahead of the company’s Q2 earnings report on August 6. The stock currently trades at $389.03.

According to the firm’s latest industry checks, AppLovin maintained or extended its leadership position in the mobile gaming segment during the quarter. Analyst commentary pointed to above-peer growth across a sector that showed clear signs of recovery, adding to the bullish tone.

BTIG reiterated AppLovin as a Top Pick, citing ongoing share gains and operational leverage within the company’s AXON ad platform.

Solid field intel suggests AppLovin outperformed peers in Q2, reinforcing bullish positioning into earnings.

AppLovin competitor Unity opened the day up more than 10% after reporting earnings, but saw shares sink into midday trading. Shares have rebounded slightly, but Unity is still down 6% today.

Investors in AppLovin don’t seem to be too bothered by Unity’s earnings, shares of AppLovin are up 2.5% as of 2:40 p.m. ET.

There’s been a massive wave of institutional buying in $APP ahead of earnings today after the close.

What to watch for:
Ad-tech Revenue – Expectations are in the $1.2-1.27B range, which would be 70% YoY growth. I wouldn’t be surprised if they beat this.

EBITDA Margins -… pic.twitter.com/13ZyfpgygS

— Sam Badawi (@samsolid57) August 6, 2025

AppLovin has delivered four straight EPS beats, with especially strong post-earnings moves in Q3 and Q4 2024. The stock has responded positively to each report despite volatility in the most recent quarter.