The company reported $1.29 billion in free cash flow and $1.84 billion revenue after exiting mobile gaming for AI-driven ads.
AppLovin completed its exit from mobile gaming, selling its portfolio to Tripledot Studios for $400 million in cash and equity on June 30, 2025. The move leaves a pure-play AI advertising business with 78% operating margins and 85% adjusted EBITDA margins in Q2 2025.
Revenue surged 59% year over year to $1.84 billion, while operating income reached $1.44 billion. Free cash flow hit $1.29 billion on just $413,000 in capital expenditures, funding $1 billion in share buybacks in a single quarter.
Despite a 33% year-to-date stock decline, analysts maintain a $654 consensus price target, citing profitability metrics comparable to large-cap software firms. The company now operates as an AI-driven ad platform, though markets have yet to reprice it accordingly.