AppLovin reports 40% revenue growth in Q1 2025 to reach $1.48bn

AppLovin's advertising revenue increased by 71% in Q1 2025 to reach $1.16 billion while app revenue declined by 14% to $325 million. 

That's according to the company's latest financials which showed that total revenue rose by 40%, amounting to $1.48bn. 

Moreover, advertising Adjusted EBITDA surged by 92% to $943m, while apps Adjusted EBITDA grew by 9% to $62m. 

The Ad tech firm's Adjusted EBITDA increased by 83% to $1bn while net income saw substantial growth of 144%, totalling $576m.

Furthermore, net cash from operating activities was $832m and free cash flow was $826m. The company said it repurchased and withheld 3.4m shares of Class A common stock at a cost of $1.2bn. 

As of the end of the quarter, 338m shares of Class A and Class B common stock were outstanding.

Offloading its games business 

Earlier this month, AppLovin agreed to sell its mobile gaming business to Tripledot Studios for $400m in cash and a roughly 20% ownership stake in Tripledot's common equity. 

The transaction is subject to regulatory approvals and customary conditions, it is expected to close in the second quarter of 2025.

Elsewhere, AppLovin has proposed a merger with TikTok Global, covering non-China assets to create a partnership that addresses security, data, and content challenges while boosting ad revenue. 

The firm estimates that integrating its Axon AI could increase TikTok's non-China ad revenue from $20bn in 2024 to $80bn.