Applovin Corp (NASDAQ:APP) stock rallies 12.84% (As on August 7, 11:22:08 AM UTC-4, Source: Google Finance) after the company reported upbeat guidance for the current quarter as Q2 results topped earnings estimates. On June 30, 2025 the company has completed the sale of the Apps business to Tripledot Studios for $400 million in cash, subject to closing adjustments, and equity consideration representing approximately 20% of Tripledot’s fully-diluted equity at the time of closing. No promissory note was issued as part of the transaction. Net revenue per installation increased 70% and installations increased 8%. Net Income from Continuing Operations grew 156% to $772 million, a net margin from continuing operations of 61%.

APP in the second quarter of FY25 has reported the adjusted earnings per share of $2.39, beating the analysts’ estimates for the adjusted earnings per share of $2.01. The company had reported the adjusted revenue growth of 77 percent to $1.26 billion in the second quarter of FY25, missing the analysts’ estimates for revenue of $1.27 billion. AppLovin’s adjusted EBITDA reached $1.018 billion for the quarter, marking a substantial 99% increase from the $511 million reported in the prior year period. The company’s adjusted EBITDA margin expanded to an impressive 81%, up from 72% in Q2 2024, demonstrating the scalability of its platform-based business model.

Meanwhile, for the first six months of 2025, AppLovin’s cumulative results were equally impressive. Revenue for the half-year period reached $2.42 billion, up 74% from $1.39 billion in the same period of 2024. Net income for the six-month period totaled $1.40 billion, compared to $546 million in the prior year, representing a 156% increase. The company’s adjusted EBITDA for the first half reached $1.96 billion, nearly doubling the $995 million achieved in the first six months of 2024.

Additionally, net cash from operating activities was $772 million and Free Cash Flow was $768 million for the second quarter 2025. During the second quarter 2025, the company repurchased and withheld 0.9 million shares of the Class A common stock, for a total cost of $341 million1. At the end of 2Q 2025, the company had 339 million shares of the Class A and Class B common stock outstanding

AppLovin expects third-quarter revenue to be in the range of $1.32 billion to $1.34 billion versus estimates of $1.314 billion. The company anticipates third-quarter adjusted EBITDA of $1.07 billion to $1.09 billion, with the adjusted EBITDA margin expected to maintain the impressive 81% level achieved in the second quarter.