Mobile app technology company AppLovin (NASDAQ:APP) reported Q3 CY2025 results exceeding the market’s revenue expectations , with sales up 17.3% year on year to $1.41 billion. Its GAAP profit of $2.45 per share was 2.6% above analysts’ consensus estimates.
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Revenue: $1.41 billion vs analyst estimates of $1.34 billion (17.3% year-on-year growth, 4.5% beat)
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EPS (GAAP): $2.45 vs analyst estimates of $2.39 (2.6% beat)
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Operating Margin: 76.8%, up from 44.6% in the same quarter last year
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Free Cash Flow Margin: 74.7%, up from 61.3% in the previous quarter
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Market Capitalization: $205.9 billion
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, AppLovin grew its sales at an excellent 35.2% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. AppLovin’s annualized revenue growth of 34.9% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.
This quarter, AppLovin reported year-on-year revenue growth of 17.3%, and its $1.41 billion of revenue exceeded Wall Street’s estimates by 4.5%.
Looking ahead, sell-side analysts expect revenue to grow 26.9% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and indicates the market is baking in success for its products and services.
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The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
