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 initiatives, with revenue growing 66% year-over-year in Q4 to $1.66 billion and 70% for the full year 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, innovation, and expanding the platform's reach despite market volatility and competitive concerns.

• Emphasized the scalability and durability of the business model, with a unified auction platform and robust network effects.

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 totaled $3.95 billion, up 91% year-over-year.

• Q4 2025 Adjusted EBITDA margin was 84%, up from 77% in Q4 2024.

• 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.

Outlook and guidance

• Q1 2026 revenue guidance: $1.745–$1.78 billion, representing 5–7% sequential growth.

• Q1 2026 adjusted EBITDA expected between $1.465–$1.50 billion, with ~84% margin.

• Continued confidence in sustaining hyper-growth, high margins, and strong free cash flow generation.