AppLovin Corporation (NASDAQ:APP) ("AppLovin"), a leading marketing platform, today announced financial results for the quarter ended June 30, 2025 and posted a financial update on its Investor Relations website located at https://investors.applovin.com.

Second Quarter 2025 Financial Highlights:

(In millions, except percentages)	Quarter Ended June 30,						Six Months Ended June 30,
		2025		2024	% Change			2025		2024	% Change
Revenue	$	1,259	$	711	77	%	$	2,418	$	1,389	74	%
Net Income	$	820	$	310	164	%	$	1,396	$	546	156	%
Net Income from Continuing Operations	$	772	$	301	156	%	$	1,495	$	560	167	%
Adjusted EBITDA	$	1,018	$	511	99	%	$	1,956	$	995	97	%

Additional Financial Highlights:

Net cash from operating activities was $772 million and Free Cash Flow was $768 million for the second quarter 2025.
During the second quarter 2025, we repurchased and withheld 0.9 million shares of our Class A common stock, for a total cost of $341 million¹. At the end of 2Q 2025, we had 339 million shares of our Class A and Class B common stock outstanding.
On June 30, 2025 we completed the sale of our Apps business to Tripledot Studios for $400 million in cash, subject to closing adjustments, and equity consideration representing approximately 20% of Tripledot's fully-diluted equity at the time of closing. No promissory note was issued as part of the transaction. Results related to our Apps business are presented as discontinued operations in our financial statements.

Third Quarter 2025 Financial Guidance Summary:²

(In millions, except percentages)	3Q25
	Low			High
Revenue	$	1,320		$	1,340
Adjusted EBITDA	$	1,070		$	1,090
Adjusted EBITDA margin		81	%		81	%

______________________________________________
¹		Includes repurchased shares as well as withholdings upon net share settlement of vested equity awards. Total cost includes repurchase costs, including commissions and fees, as well as cash paid in connection with tax withholding and remittance obligations upon net share settlement
²		We have not provided the forward-looking GAAP equivalents for forward-looking non-GAAP metrics, specifically Adjusted EBITDA and Adjusted EBITDA margin, or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this letter.

Webcast and Conference Call

AppLovin will host a webinar today at 2:00 PM PT / 5:00 PM ET, during which management will discuss the Company's second quarter 2025 results and provide commentary on its business performance. A question-and-answer session will follow the prepared remarks.

The webinar may be accessed on the Company's investor relations website or via webinar registration. A replay of the webinar will also be available under the Events & Presentations section of our Investor Relations website.

About AppLovin

AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.

Source: AppLovin Corp.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expect," "plan," "anticipate," "going to," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include our expected financial results and guidance. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties, including changes in our plans or assumptions, which could cause actual results to differ materially from those projected. These risks include our inability to forecast our business effectively, the macroeconomic environment, fluctuations in our results of operations, our ability to execute on our operational and financial priorities, our ability to scale our business to support new users, the competitive advertising ecosystem, and our inability to adapt to emerging technologies and business models. The forward-looking statements contained in this letter are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2025. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP"), this shareholder letter includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP measure can be found below.

We define Adjusted EBITDA for a particular period as net income adjusted for loss (income) from discontinued operations, net of income taxes, interest expense, other (income) expense, net (excluding certain recurring items), provision for income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange (gain) loss, stock-based compensation, transaction-related expense, restructuring costs, as well as certain other items that we believe are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.

We define Free Cash Flow as net cash provided by operating activities less purchases of property and equipment and principal payments on finance leases. We subtract both purchases of property and equipment and payment of finance leases in our calculation of Free Cash Flow because we believe these items represent our ongoing requirements for property and equipment to support our business, regardless of whether we utilize a finance lease to obtain such property or equipment.

We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and operating performance, as they are similar to measures reported by our public competitors and are regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects.

Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We use Free Cash Flow in addition to GAAP measures to help manage our business and prepare budgets and annual planning, and we believe Free Cash Flow provides useful supplemental information to help investors understand underlying trends in our business and our liquidity.

These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Free Cash Flow reflects cash flows from both of continuing and discontinued operations. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.


AppLovin Corporation Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited)

	June 30, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	1,192,608		$	697,030
Accounts receivable, net		1,581,679			1,283,335
Prepaid expenses and other current assets		218,402			140,470
Current assets of discontinued operations		—			191,355
Total current assets		2,992,689			2,312,190
Property and equipment, net		129,600			159,970
Goodwill		1,539,301			1,457,685
Intangible assets, net		448,179			472,851
Other non-current assets		849,728			529,314
Non-current assets of discontinued operations		—			937,249
Total assets	$	5,959,497		$	5,869,259
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	553,692		$	504,302
Accrued and other current liabilities		495,218			379,004
Deferred revenue		44,975			37,053
Current liabilities of discontinued operations		—			137,113
Total current liabilities		1,093,885			1,057,472
Long-term debt		3,510,958			3,508,983
Other non-current liabilities		187,527			211,572
Non-current liabilities of discontinued operations		—			1,414
Total liabilities		4,792,370			4,779,441
Stockholders' equity:
Preferred stock, $0.00003 par value—100,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025 and December 31, 2024		—			—
Class A, Class B, and Class C Common Stock, $0.00003 par value—1,850,000,000 (Class A 1,500,000,000, Class B 200,000,000, Class C 150,000,000) shares authorized, 338,782,503 (Class A 308,168,962, Class B 30,613,541, Class C nil) and 340,041,739 (Class A 309,353,198, Class B 30,688,541, Class C nil) shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively		11			11
Additional paid-in capital		448,899			593,699
Accumulated other comprehensive loss		(5,149	)		(103,096	)
Retained earnings		723,366			599,204
Total stockholders' equity		1,167,127			1,089,818
Total liabilities and stockholders' equity	$	5,959,497		$	5,869,259


AppLovin Corporation Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
Revenue	$	1,258,754		$	711,015		$	2,417,728		$	1,389,385
Costs and expenses:
Cost of revenue		155,076			121,759			306,756			246,301
Sales and marketing		46,917			66,965			106,300			127,875
Research and development		44,032			99,123			100,438			188,071
General and administrative		55,047			38,746			106,570			78,815
Total costs and expenses		301,072			326,593			620,064			641,062
Income from operations		957,682			384,422			1,797,664			748,323
Other income (expense):
Interest expense		(51,409	)		(74,418	)		(104,297	)		(148,343	)
Other income (expense), net		(22,269	)		7,872			(14,757	)		9,506
Total other expense, net		(73,678	)		(66,546	)		(119,054	)		(138,837	)
Income before income taxes		884,004			317,876			1,678,610			609,486
Provision for income taxes		112,148			16,894			183,216			49,147
Net income from continuing operations		771,856			300,982			1,495,394			560,339
Income (loss) from discontinued operations, net of income taxes		47,675			8,987			(99,444	)		(14,187	)
Net income	$	819,531		$	309,969		$	1,395,950		$	546,152

Net income (loss) per share attributed to Class A and Class B common stockholders - Basic:
Continuing operations	$	2.28		$	0.90		$	4.41		$	1.66
Discontinued operations		0.14			0.02			(0.30	)		(0.04	)
Basic net income per share	$	2.42		$	0.92		$	4.11		$	1.62

Net income (loss) per share attributed to Class A and Class B common stockholders - Diluted:
Continuing operations	$	2.26		$	0.86		$	4.35		$	1.60
Discontinued operations		0.13			0.03			(0.29	)		(0.04	)
Diluted net income per share	$	2.39		$	0.89		$	4.06		$	1.56

Weighted-average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders:
Basic		338,617,184			335,681,788			339,223,841			335,785,864
Diluted		342,194,433			347,964,201			343,528,576			348,327,848


AppLovin Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Six Months Ended June 30,
		2025			2024
Operating Activities
Net income	$	1,395,950		$	546,152
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization, depreciation and write-offs		126,940			221,208
Goodwill impairment		188,943			—
Stock-based compensation, excluding cash-settled awards		97,026			193,977
Gain on divestiture, net of transaction costs		(106,229	)		—
Other		41,617			10,300
Changes in operating assets and liabilities:
Accounts receivable		(291,551	)		(125,185	)
Prepaid expenses and other assets		20,691			26,161
Accounts payable		39,040			15,453
Accrued and other liabilities		91,511			(40,760	)
Net cash provided by operating activities		1,603,938			847,306
Investing Activities
Proceeds from divestiture, net of cash divested		424,702			—
Purchase of non-marketable equity securities		(18,678	)		(76,333	)
Other investing activities		(27,140	)		(23,658	)
Net cash provided by (used in) investing activities		378,884			(99,991	)
Financing Activities
Repurchases of common stock		(1,272,429	)		(752,224	)
Payment of withholding taxes related to net share settlement		(256,650	)		(436,480	)
Principal repayments of debt		(200,000	)		(677,863	)
Payments of licensed asset obligation		(13,532	)		—
Proceeds from issuance of debt		200,000			1,072,330
Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares		14,824			19,098
Other financing activities		(11,807	)		(10,473	)
Net cash used in financing activities		(1,539,594	)		(785,612	)
Effect of foreign exchange rate on cash and cash equivalents		7,969			(3,406	)
Net increase (decrease) in cash and cash equivalents, including cash classified within current assets of discontinued operations		451,197			(41,703	)
Less: net (decrease) in cash classified within current assets of discontinued operations		(44,381	)		—
Net increase (decrease) in cash and cash equivalents		495,578			(41,703	)
Cash and cash equivalents at beginning of the period		697,030			502,152
Cash and cash equivalents at end of the period	$	1,192,608		$	460,449


AppLovin Corporation Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow (In thousands) The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow for the periods presented:

	Three Months Ended June 30,
		2025					2024
Net cash provided by operating activities	$	772,226				$	454,527
Less:
Purchase of property and equipment		(42	)				(3,928	)
Principal payments of finance leases		(4,121	)				(5,089	)
Free Cash Flow	$	768,063				$	445,510
Net cash provided by (used in) investing activities	$	401,548		$	—	$	(68,356	)
Net cash used in financing activities	$	(537,377	)			$	(361,000	)


AppLovin Corporation Reconciliation of Net Income to Adjusted EBITDA (In thousands, except percentages) The following table provides our Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of Net Income to Adjusted EBITDA for the periods presented:

	Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024
Revenue	$	1,258,754		$	711,015		$	2,417,728		$	1,389,385
Net income		819,531			309,969			1,395,950			546,152
Net margin		65	%		44	%		58	%		39	%
Loss (income) from discontinued operations, net of income taxes		(47,675	)		(8,987	)		99,444			14,187
Net income from continuing operations		771,856			300,982			1,495,394			560,339
Net margin from continuing operations		61	%		42	%		62	%		40	%
Adjusted as follows:
Interest expense	$	51,409		$	74,418		$	104,297		$	148,343
Other (income) expense, net		12,798			(8,763	)		4,154			(11,777	)
Provision for income taxes		112,148			16,894			183,216			49,147
Amortization, depreciation and write-offs		31,064			31,242			63,010			62,159
Non-operating foreign exchange (gain) loss		(1,210	)		412			(1,530	)		1,411
Stock-based compensation		34,552			93,559			93,667			182,503
Transaction-related expense		5,097			485			9,680			854
Restructuring costs		633			1,936			4,231			1,936
Total adjustments		246,491			210,183			460,725			434,576
Adjusted EBITDA	$	1,018,347		$	511,165		$	1,956,119		$	994,915
Adjusted EBITDA margin		81	%		72	%		81	%		72	%

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Investors

David Hsiao

ir@applovin.com

Press

Emelyne Interior

press@applovin.com

AppLovin Announces Second Quarter 2025 Financial Results