AppLovin Reports Strong Q1 2025 Financial Results, Finalizes Sale of Mobile Gaming Business

APP
September 18, 2025
AppLovin Corporation announced strong financial results for the first quarter ended March 31, 2025. Total revenue reached $1.48 billion, a 40% increase year-over-year, with Advertising Revenue soaring 71% to $1.16 billion. Net income for the quarter was $576.4 million, a 144% increase from the prior year, with diluted earnings per share of $1.67. Adjusted EBITDA for the quarter was $1.01 billion, up 83% year-over-year, with the Advertising segment contributing $943.2 million, a 92% increase and an impressive 81% margin. In contrast, Apps Revenue declined 14% to $325.0 million, underscoring the strategic rationale for its divestiture. On May 7, 2025, AppLovin entered into a definitive agreement to sell its mobile gaming business to Tripledot Studios for $400 million in cash and an approximately 20% ownership stake in Tripledot. This transaction, expected to close in Q2 2025, marks a clear strategic shift to focus entirely on the higher-growth, higher-margin Advertising business. For Q2 2025, the company guided for Advertising revenue between $1.195 billion and $1.215 billion, and Advertising Adjusted EBITDA between $970 million and $990 million, targeting an 81% margin. The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.