Applovin (APP) Q4 2025 earnings summary

Executive summary

• Achieved record operating performance in Q4 and full year 2025, driven by AI-powered models and strong execution across gaming and e-commerce, with Q4 revenue up 66% to $1.66 billion and full-year revenue up 70% to $5.48 billion.

• Net income increased 84% year-over-year in Q4 to $1.10 billion and 111% for the full year to $3.33 billion.

• Adjusted EBITDA rose 82% year-over-year in Q4 to $1.40 billion and 87% for the full year to $4.51 billion.

• Maintained focus on long-term value creation despite market volatility and competitive concerns, emphasizing innovation and network effects.

• E-commerce and self-service platform showed promising early results, with significant customer spend increases and ongoing model improvements.

Financial highlights

• Q4 revenue reached $1.66 billion, up 66% year-over-year, with adjusted EBITDA of $1.4 billion (84% margin), up 82% year-over-year.

• Full-year 2025 revenue was $5.48 billion, up 70% year-over-year; adjusted EBITDA was $4.51 billion (82% margin), up 87% year-over-year.

• Free cash flow for Q4 was $1.31 billion, up 88% year-over-year; full-year free cash flow was $3.95 billion, up 91% year-over-year.

• Diluted EPS for Q4 was $3.24, up from $1.73 in Q4 2024; full year diluted EPS was $9.75, up from $4.53.

• Rule of Forty score reached 150, reflecting exceptional growth and profitability.

Outlook and guidance

• Q1 2026 revenue expected between $1.745 billion and $1.78 billion, representing 5%-7% sequential growth.

• Adjusted EBITDA for Q1 2026 projected at $1.47–$1.50 billion, with an 84% margin.

• Continued investment in marketing and generative AI tools, with a focus on controlled scaling and maintaining high margins.