AppLovin Earnings: Q4 Profit Soars After Revenue Beat
AppLovin earnings showed hefty margins and $3.95B free cash flow that funded $2.58B of buybacks, signaling buyback-driven flow for traders.
KEY TAKEAWAYS
- Q4 revenue was $1.66 billion, a 66% year-over-year increase.
- Full-year adjusted-EBITDA margin reached 82% for 2025.
- 2025 free cash flow totaled $3.95 billion and funded $2.58 billion in repurchases.
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AppLovin Corporation said in its Feb. 11, 2026 earnings release that its fourth-quarter profit rose sharply, driven by sustained margin strength despite softer advertising demand. The company also issued guidance for the first quarter of 2026.
Q4 and Full-Year Results
AppLovin reported fourth-quarter 2025 revenue of $1.66 billion, a 66% increase from $999 million a year earlier. Net income reached $1.10 billion, representing a 66% net margin. Adjusted earnings per share were $3.24, about 12% above consensus estimates. Adjusted EBITDA, a proxy for operating profit, totaled $1.40 billion.
For the full year, revenue rose 70% to $5.48 billion, while net income more than doubled to $3.33 billion. Adjusted EBITDA increased 87% to $4.51 billion, producing an 82% adjusted-EBITDA margin for 2025.
Guidance and Capital Returns
The company forecasted first-quarter 2026 revenue between $1.745 billion and $1.775 billion, with adjusted EBITDA of $1.465 billion to $1.495 billion, implying an 84% margin, according to an 8-K filing. An earnings-call webcast followed the release.
AppLovin generated $3.95 billion in free cash flow and $3.97 billion in net cash from operating activities in 2025. It repurchased 6.4 million shares for $2.58 billion, ending the quarter with 338 million shares outstanding. The strong cash flow and elevated adjusted margins funded these multibillion-dollar buybacks, highlighting the company’s capacity for shareholder returns despite weaker advertising markets.
The results reflect a business model converting high adjusted margins into cash and capital returns. The guidance signals management expects margin resilience to continue into the new quarter, supporting ongoing financial flexibility.
