The earnings call reflected a strong financial performance for AppLovin in Q1 2025, with record revenue growth and successful strategic initiatives such as the sale of the games business. The company demonstrated resilience in overcoming seasonal challenges and is poised for further growth through advancements in machine learning and AI. However, there are areas of concern, such as limited penetration in web advertising and potential impacts from tariff changes. Despite these challenges, the positive highlights outweigh the lowlights.

Company Guidance -

Q3 2025

During AppLovin's Q1 2025 earnings call, the company outlined its strategic guidance for the upcoming quarter and beyond. The company expects its Advertising business to deliver revenue between $1.195 billion and $1.215 billion, with an adjusted EBITDA range of $970 million to $990 million, maintaining an 81% margin. This forecast reflects a sequential growth of 3% to 5%, attributed to ongoing machine learning advancements and the expansion of their e-commerce and web advertising solutions. AppLovin also announced the definitive agreement to sell its games business to Tripledot Studios, which will enable a sharper focus on its Advertising segment. The company has set three key priorities for 2025: enhancing machine learning models, improving e-commerce and web advertising solutions, and developing automated ad creation tools. Despite potential macroeconomic impacts like tariffs, AppLovin remains confident in its ability to navigate changes without adversely affecting its business trajectory. The company plans to leverage its lean operational model and a robust data moat to sustain its position as a performance leader in the marketing platform space.

Record Revenue Growth

Total revenue increased by 40% year-over-year to $1.5 billion for Q1 2025, with adjusted EBITDA rising 83% to $1 billion, achieving a 68% adjusted EBITDA margin.

Strong Free Cash Flow

Generated $826 million in free cash flow, up 113% year-over-year, with a 19% increase quarter-over-quarter.

Strategic Sale of Games Business

Signed a definitive agreement to sell the games business to Tripledot Studios for $400 million in cash and a 20% ownership stake in the combined business.

Machine Learning and AI Advancements

Continued enhancement of machine learning models to improve advertising performance, with a focus on expanding e-commerce and web advertising solutions.

High Adjusted EBITDA Margin in Advertising

Achieved 81% margin in the Advertising segment with $1.16 billion in revenue and $943 million in adjusted EBITDA.

AppLovin (APP) Earnings, Revenues Date & History

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APP Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 05, 2025	2025 (Q3)	- / -	1.25	―	―	―
Aug 06, 2025	2025 (Q2)	1.96 / -	0.89	―	―	―
May 07, 2025	2025 (Q1)	1.44 / 1.67	0.67	149.25% (+1.00)
Feb 12, 2025	2024 (Q4)	1.25 / 1.73	0.49	253.06% (+1.24)	―
Nov 06, 2024	2024 (Q3)	0.92 / 1.25	0.3	316.67% (+0.95)	―
Aug 07, 2024	2024 (Q2)	0.74 / 0.89	0.22	304.55% (+0.67)	―
May 08, 2024	2024 (Q1)	0.57 / 0.67	-0.01	6800.00% (+0.68)	―
Feb 14, 2024	2023 (Q4)	0.35 / 0.49	-0.21	333.33% (+0.70)	―
Nov 08, 2023	2023 (Q3)	0.27 / 0.30	0.06	400.00% (+0.24)	―
Aug 09, 2023	2023 (Q2)	0.08 / 0.22	-0.06	466.67% (+0.28)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

APP Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 07, 2025	$303.46	$339.51	+11.88%
Feb 12, 2025	$380.32	$471.67	+24.02%
Nov 06, 2024	$168.55	$246.53	+46.27%
Aug 07, 2024	$67.19	$76.73	+14.20%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.