"This week, AppLovin closed the books on 2025, reporting strong fourth-quarter results. Revenue for the period rose 66% year over year to nearly $1.7 billion. This put the company's full-year 2025 revenue at approximately $5.5 billion, up 70% year over year. Even more, the company's net income is growing at an even faster rate. AppLovin's fourth-quarter net income rose 84% year over year to $1.1 billion, and full-year 2025 net income increased 111% to $3.3 billion."
"AppLovin's free cash flow in 2025 was $3.95 billion, up from $2.1 billion in 2024. Capturing the impressive cash-generative ability of AppLovin's business model, the company's free cash flow as a percentage of its revenue was 72%. The company, AppLovin CEO Adam Foroughi explained in AppLovin's fourth-quarter earnings call, is benefiting from the artificial intelligence models powering its business. "And as research in AI, both internal and external, continues to improve, our business will grow with it," Foroughi added."
AppLovin shares plunged about 48% in 2026 despite continued strong business results. Fourth-quarter 2025 revenue rose 66% year over year to nearly $1.7 billion, bringing full-year revenue to about $5.5 billion, up 70%. Fourth-quarter net income increased 84% to $1.1 billion and full-year net income rose 111% to $3.3 billion. Free cash flow in 2025 reached $3.95 billion, up from $2.1 billion in 2024, equal to 72% of revenue. The company is benefiting from artificial intelligence models powering its business, and management expects growth as AI research improves. Investors are advised to consider the bear case before buying.
Read at The Motley Fool
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