AppLovin delivered a standout third quarter in 2025, growing revenue by 68.2% year-over-year to $1.41 billion while converting this top-line surge into an industry-leading 82% EBITDA margin. The company’s focus on its MAX-AXON ad optimization suite drove free cash flow above $700 million at scale, underscoring its rare ability to monetize user acquisition spend with minimal incremental costs. AppLovin reported EPS of $2.45, beating the consensus estimate by $0.11, and achieved a return on equity of 258.49% alongside a net margin of 51.27%, indicating robust operational leverage as the business scales.

Several major investors bolstered their stakes in AppLovin during the quarter. Abacus FCF Advisors LLC increased its position by 26.8%, adding 7,684 shares to reach 36,385 shares valued at $26.14 million. Norges Bank initiated a new stake in the second quarter valued at approximately $951.54 million. Royal Bank of Canada expanded its holding by 61.1% to 1.43 million shares, representing $380.10 million. Amundi lifted its position by 82.8% to 1.10 million shares, worth $289.12 million, and the National Pension Service increased its stake by 82.2% to 790,271 shares, valued at $276.66 million. Voya Investment Management recorded the most dramatic increase, up 235.5% to 496,560 shares worth $356.80 million. Collectively, institutional investors and hedge funds now own 41.85% of AppLovin’s outstanding shares.