Applovin — Financial Results
Revenue Nearly Doubled in Two Years, Driven by AI-Powered Ad Performance
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $1.84B | $3.22B | $5.48B |
| Year-over-year growth | — | 75% | 70% |
AppLovin's revenue has grown from $1.8 billion to $5.5 billion in just two years. The 2025 jump was almost entirely driven by its Axon Ads Manager platform delivering better results for advertisers — the number of app installs it generated grew only 3%, but the revenue earned per install jumped 72%, meaning advertisers are paying significantly more because the AI is working better for them.
Profit Margins Are Exceptional and Still Expanding
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating margin | 42% | 59% | 76% |
| Adjusted EBITDA margin | 67% | 75% | 82% |
| Net income (continuing ops) | $458M | $1.59B | $3.43B |
As revenue grew, costs barely moved — total expenses went from $1.31B to $1.33B while revenue grew by $2.3B. That means almost every additional dollar of revenue dropped straight to profit. An Adjusted EBITDA margin (a measure of operating profitability before interest, taxes, and non-cash items) of 82% is extraordinarily high for a technology company.
The Apps Business Was Sold, Leaving a Pure Advertising Company
AppLovin sold its mobile games (Apps business) to Tripledot Studios in June 2025 for $400 million in cash plus roughly 20% equity in Tripledot. The company now operates solely as an advertising technology business. This is a strategic sharpening of focus — the Apps segment had been losing money ($99 million loss in 2025), so shedding it cleans up the financials and lets management concentrate entirely on the high-margin advertising platform.
Free Cash Flow Is Enormous, Funding Aggressive Share Buybacks
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free cash flow | $1.04B | $2.07B | $3.95B |
Free cash flow (cash generated after basic capital spending) nearly doubled year-over-year to $4.0 billion. The company deployed $2.2 billion of that buying back 5.5 million of its own shares in 2025, with $3.3 billion still authorized for future repurchases. Buybacks reduce the number of shares outstanding, which can increase the value of remaining shares over time.
Tax Bill Surged — A Sign of Just How Profitable the Business Became
The income tax provision jumped from $22 million in 2024 to $520 million in 2025. This wasn't a change in tax law — it reflects how much more pre-tax profit the company earned, combined with fewer stock-based compensation (non-cash pay granted to employees) deductions as equity award costs fell sharply. Investors should factor this normalized, higher tax rate into any future earnings expectations.