AppLovin Corporation reported third‑quarter 2025 results that surpassed Wall Street estimates, with revenue reaching $1.405 billion—an increase of 68% from the $835 million reported in Q3 2024. Diluted earnings per share climbed to $2.45, up 91.5% from $1.25 in the same quarter last year, while adjusted EBITDA rose to $1.158 billion, giving the company an 82% margin that exceeded the 81% consensus expectation.
Revenue growth was driven primarily by the company’s high‑margin advertising platform and its AI‑powered AXON engine. The launch of a self‑service platform added a new revenue stream, and the company reported a 50% week‑over‑week spend increase from new advertisers. At the same time, AppLovin tightened its cost structure by reducing research and development and marketing expenses, which helped lift the adjusted EBITDA margin despite the rapid revenue expansion.
The earnings beat was modest but meaningful: EPS of $2.45 outpaced the consensus estimate of $2.37 by $0.08, a 3.4% overrun. The beat was largely attributable to the combination of higher revenue, improved margin performance, and disciplined cost management, with no material one‑time charges reported for the quarter.
Management raised its fourth‑quarter guidance, projecting revenue of $1.57 billion to $1.60 billion and adjusted EBITDA of $1.29 billion to $1.32 billion, maintaining an 82–83% margin outlook. The guidance signals confidence in sustained demand for the AXON platform and the self‑service model, while the company noted an ongoing SEC investigation into data‑collection practices as a potential risk factor.
Following the earnings release, analysts across the market responded positively. BTIG’s Clark Lampen lifted his price target to $705, Goldman Sachs’ Eric Sheridan raised his target to $720, and Wedbush’s Alicia Reese increased her target to $800. The market reaction was driven by the earnings beat, the upbeat guidance, the strong margin expansion, and the company’s share‑repurchase program, which was expanded by $3.2 billion.
AppLovin’s results also come amid broader strategic milestones: the company was formally added to the S&P 500, and its share‑repurchase program signals a commitment to returning capital to shareholders. The company’s pivot to a pure‑play advertising model, underpinned by AI investments, positions it for continued growth, though the SEC investigation remains a headwind that could affect future sentiment.
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