AppLovin Corp (NASDAQ:APP) Reports Q2 2025 Earnings Miss on Revenue but Beats EPS Estimates

AppLovin Corporation (NASDAQ:APP) reported its second-quarter 2025 financial results, delivering revenue and earnings that came in below analyst expectations. The mobile marketing platform posted revenue of $1.26 billion, a 77% year-over-year increase but short of the consensus estimate of $1.28 billion. Adjusted earnings per share (EPS) of $2.26 surpassed the $2.05 forecast, reflecting strong profitability despite the revenue miss.

Key Financial Highlights

• Revenue Growth: Q2 revenue rose 77% YoY to $1.26B, though slightly below estimates.
• Profitability Strength: Net income surged 164% YoY to $820M, with Adjusted EBITDA reaching $1.02B, up 99% YoY.
• Free Cash Flow: Generated $768M in free cash flow, reinforcing the company’s ability to fund growth and shareholder returns.
• Share Buybacks: Repurchased 0.9M shares for $341M, signaling confidence in long-term value.

Market Reaction

Following the earnings release, AppLovin’s stock declined 2.4% in after-hours trading. While the company demonstrated robust profitability, the revenue miss appears to have tempered investor enthusiasm. Over the past month, shares had gained 9.6%, suggesting some investors may have been pricing in stronger top-line growth.

Outlook vs. Analyst Expectations

AppLovin provided Q3 2025 revenue guidance of $1.32B to $1.34B, slightly below the analyst consensus of $1.33B. However, the company expects Adjusted EBITDA margins to remain strong at 81%, indicating sustained profitability. For the full year, analysts project revenue of $5.64B, which AppLovin’s performance so far suggests is within reach.

Strategic Developments

The company completed the sale of its Apps business to Tripledot Studios for $400M in cash plus a 20% equity stake, streamlining its focus on its core advertising technology platform. This move aligns with AppLovin’s strategy to prioritize high-margin software solutions.

For a deeper dive into AppLovin’s earnings and future estimates, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.