AppLovin Corp. reported fourth‑quarter 2025 revenue of $1.658 billion, a 66% year‑over‑year increase, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.399 billion, translating to an 84% margin. Adjusted earnings per share came in at $3.24, beating the consensus estimate of $2.95 by $0.29, or 12%.
The revenue surge was driven primarily by continued growth in the company’s core mobile‑gaming advertising segment, which benefited from seasonal demand and higher bid density. Early traction in e‑commerce and connected‑TV initiatives added incremental revenue, while the AI‑powered AXON 2.0 engine helped lift net revenue per installation. Management noted that 95% of incremental revenue flowed directly into EBITDA, underscoring strong operating leverage.
Compared with the prior year, the 66% YoY growth represents a sharp acceleration from the 20.8% increase reported in Q4 2024, indicating that AppLovin’s high‑margin model is scaling more rapidly than in previous periods.
For the first quarter of 2026, the company guided revenue to $1.745 billion–$1.775 billion and adjusted EBITDA to $1.465 billion–$1.495 billion, maintaining an 84% margin. The guidance reflects a 5%–7% sequential growth rate, a modest slowdown from the 66% YoY pace of Q4 2025, but still signals confidence in sustained demand.
Market reaction was muted, with investors citing valuation concerns, competitive pressure from larger tech players, and the perceived deceleration in growth trajectory. Despite the strong results, the company’s high valuation multiples and the market’s focus on potential headwinds tempered enthusiasm.
CEO Adam Foroughi said, “there is a real disconnect between market sentiment and the reality of our business.” He added, “What's fueling that growth is our own AI models” and noted that “in our case, as bid density goes up, the pie expands. And while our share of the auction may shrink, our economics actually grow.” CFO Matt Stumpf highlighted the year’s performance, stating, “Q4 marked what was not just a strong quarter, but the most exceptional year we've ever delivered and one of the strongest performances in the public markets.” He also emphasized the guidance, saying, “We expect revenue between $1.745 billion and $1.775 billion, representing 5% to 7% sequential growth. Adjusted EBITDA is expected to be between $1.465 billion and $1.495 billion with an adjusted EBITDA margin of approximately 84%.”
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