AppLovin Q3 2025 Preview: First True Test After the Apps Sale

AppLovin APP reports third-quarter results on November 5, 2025, after the market closes. Wall Street expects EPS of $2.38, a 90% increase YoY, on revenue of $1.4 billion. The stock has climbed 92% year to date and over 275% in the past twelve months, leaving little room for disappointment as the company rides momentum from its AI-powered AXON ad platform.

AppLovin has become one of 2025's standout performers, benefiting from advertisers' pivot toward performance-based campaigns and the growing use of AI optimization in mobile marketing. In the prior quarter, revenue surged 77% YoY to $1.26 billion, while adjusted EBITDA doubled to $1 billion. In addition, the company also reported an impressive 65% net profit margin, while free cash flow reached $768 million. Analysts now see another strong quarter driven by the AXON 2.0 rollout, which improved targeting efficiency and boosted return on ad spend across gaming and app verticals. Moreover, this quarter will be the first full period after completing the sale of its apps business to Tripledot Studios.

Investors will focus on the software-platform's revenue trajectory, margins, and guidance, now that the mix is cleaner post-divestiture. They will also watch for AXON scaling and self-serve adoption, plus any color on expansion beyond mobile into web and Connected TV which management has hinted at in recent updates.

With the stock having extended its gains from last year, the risk backdrop is elevated. Multiple short-seller reports this year challenged AppLovin's data practices and AXON claims, and Bloomberg reported an SEC probe in early October. AppLovin has pushed back on the allegations, but any commentary on the call could move the stock as much as the headline numbers.