AppLovin Corporation (NASDAQ: APP) is rallying today after reporting another set of blockbuster results and raising its buyback firepower. Shares were up roughly 7%–8% in Thursday trading as investors digested the company’s stronger‑than‑expected Q3 print and upbeat Q4 outlook, while sell‑side analysts raised targets. [1]
Key takeaways
- Q3 revenue jumped 68% to $1.405B; net income rose 92% to $836M; Adjusted EBITDA climbed 79% to $1.158B. [2]
- Q4 guidance: revenue $1.57B–$1.60B and Adjusted EBITDA $1.29B–$1.32B (implying an 82%–83% margin). [3]
- Buybacks: Board increased authorization by $3.2B (total remaining authorization $3.3B as of end‑October). [4]
- Stock reaction: APP rose about 7% today on the beat-and-raise quarter. [5]
- Analyst moves:Wedbush reiterated Outperform and raised its target to $800; other firms also nudged targets higher. [6]
What happened in Q3 (ended Sept. 30, 2025)
AppLovin’s top and bottom lines accelerated again in Q3:
- Revenue:$1.405B (+68% Y/Y).
- Net income:$836M (+92% Y/Y).
- Adjusted EBITDA:$1.158B (+79% Y/Y).
Management also highlighted $1.05B in operating cash flow and free cash flow during the quarter, underpinned by continued scale in its software and AI solutions for advertisers. [7]
Capital returns: buyback gets much bigger
Signaling confidence, AppLovin’s board added $3.2B to the repurchase plan, bringing remaining authorization to $3.3B as of the end of October. In Q3, the company repurchased/withheld 1.3M Class A shares for $571M. [8]
Guidance: momentum expected to continue in Q4
For the December quarter, AppLovin guided to $1.57B–$1.60B in revenue and $1.29B–$1.32B in Adjusted EBITDA. The midpoint implies an ~82%–83% Adjusted EBITDA margin, underscoring the scalability of its ad platform. Independent coverage noted the outlook was ahead of Street expectations, contributing to today’s stock move. [9]
Wall Street and market reaction today — Nov 6, 2025
- Shares rallied roughly 7%–8% during today’s session on the earnings beat and strong guide. [10]
- Wedbush: kept Outperform, raised PT to $800 (from $745). BTIG also inched targets higher, reflecting continued confidence in the model. [11]
- Financial media highlighted APP among the day’s notable movers after results. [12]
Strategic context: a leaner, ad‑platform‑first AppLovin
AppLovin has spent 2025 sharpening its focus on its high‑margin advertising platform. In May, the company sold its mobile gaming portfolio to Tripledot Studios for $800M, further simplifying the business and improving mix. Management also describes the platform as providing end‑to‑end software and AI solutions for businesses to reach and monetize global audiences—an area benefiting from data‑driven ad demand. [13]
Risks and what to watch next
- Regulatory scrutiny: In early October, Bloomberg/Reuters reported that the SEC is probing AppLovin’s data‑collection practices, following allegations from short sellers earlier in the year. AppLovin has said it works with regulators and will disclose any material developments. This remains an overhang to monitor. [14]
- Execution vs. expectations: After a big run, APP is sensitive to any slowdown in growth or margin compression versus guidance. Coverage today emphasized the beat‑and‑raise dynamic; sustaining it is key. [15]
Bottom line
AppLovin’s Q3 2025 print reinforced its status as one of adtech’s most profitable compounders: rapid growth, very high margins, and gushing cash flow—now paired with an even larger buyback. With Q4 guidance ahead of consensus and analyst targets moving higher, bulls have fresh support. Keep an eye on regulatory headlines and any signs of demand normalization, but for today, APP is squarely in the “strong execution” camp. [16]
Sources (Nov 6, 2025 coverage and primary filings)
- AppLovin Q3 2025 press release (financials, guidance, buyback). [17]
- Barron’s – Stocks moving today (APP up ~7% on results). [18]
- Bloomberg newsletter (APP +7.8% after results). [19]
- Investors Business Daily (Q4 sales outlook and market reaction). [20]
- Benzinga (Wedbush to $800; other analyst updates). [21]
- Reuters (SEC probe context). [22]
Note: Figures are GAAP unless otherwise specified; Adjusted EBITDA and margins reflect non‑GAAP metrics disclosed by the company. [23]
References
1. www.barrons.com, 2. s21.q4cdn.com, 3. s21.q4cdn.com, 4. s21.q4cdn.com, 5. www.barrons.com, 6. www.benzinga.com, 7. s21.q4cdn.com, 8. s21.q4cdn.com, 9. s21.q4cdn.com, 10. www.barrons.com, 11. www.benzinga.com, 12. www.barrons.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.barrons.com, 16. s21.q4cdn.com, 17. s21.q4cdn.com, 18. www.barrons.com, 19. www.bloomberg.com, 20. www.investors.com, 21. www.benzinga.com, 22. www.reuters.com, 23. s21.q4cdn.com
