AppLovin Corp (NASDAQ:APP)’s third quarter earnings showed continued growth across its advertising platforms and operational momentum.
The mobile technology company reported Q3 revenue $1.405 billion, exceeding Wall Street expectations of $1.34 billion by roughly $65 million, representing a 68% increase year-over-year.
The company reported adjusted earnings per share (EPS) of $2.45, surpassing the consensus estimate of $2.39 and marking a 96% increase compared with the same period last year.
Adjusted EBITDA margin came in at 82%, above the 81% expected.
During the quarter, AppLovin generated $1.05 billion in net cash from operating activities and free cash flow.
The company repurchased 1.3 million shares of Class A common stock for $571 million, leaving 339 million shares outstanding at quarter-end. Its board of directors increased the total remaining share repurchase authorization to $3.3 billion.
Looking ahead, AppLovin projects Q4 2025 revenue between $1.57 billion and $1.6 billion, above the $1.55 billion consensus estimate.
It guided adjusted EBITDA between $1.29 billion and $1.32 billion and margins of 82% to 83%.
Following AppLovin’s earnings report, Wedbush analysts raised their price target to $800 from $745 and maintained their 'Outperform' rating.
The firm highlighted strong momentum in gaming advertising, growth of the Axon self-serve platform, early-stage international expansion, and ongoing AI enhancements as key drivers of long-term growth.
The analyst noted that AppLovin is benefiting from rising mobile gaming user acquisition spend, now roughly $15 billion across third-party platforms, and sees potential tailwinds from industry trends, including the Apple vs. Epic case.
Wedbush also highlighted that the company’s lean structure, automation, and platform enhancements support sustainable EBITDA margins of 80% to 85%.
“AppLovin delivered another solid beat and highlighted the massive growth opportunity it has in the years ahead,” Wedbush wrote, citing potential gains from increased advertiser density, international localization, self-serve ad adoption, and expansion into e-commerce.
After initially rising on the results, AppLovin shares edged 0.3% lower to about $615 on Thursday morning.