AppLovin reported Q3 revenue of $509 million, representing a 68% year-over-year increase driven by higher ad spend from existing customers and new platform entrants. Adjusted EBITDA reached $418 million, corresponding to an 82% margin, underscoring the company’s ability to convert incremental revenue into profit. Management noted free cash flow of $215 million for the quarter, up from $92 million a year earlier, reflecting both top-line growth and disciplined cost management.

The company’s Axon AI engine processed over 100 billion ad impressions during Q3, a 75% increase compared to the prior year period. Internal benchmarks show that machine-learning enhancements reduced cost-per-acquisition by 18% for direct-to-consumer advertisers, enabling AppLovin to expand beyond mobile gaming into categories such as fintech and automotive. CEO Adam Foroughi emphasized that the platform’s efficiency gains now account for more than half of incremental revenue growth, a shift from reliance on volume alone.

In the most recent quarter, AppLovin onboarded over 1,200 e-commerce brands to its platform, contributing 22% of total revenue—up from 8% a year ago. Pilot programs conducted during the holiday season delivered a 4.3x return on ad spend for retail advertisers, according to company-commissioned industry data. The upcoming launch of a self-serve interface is expected to automate onboarding for thousands of merchants, potentially doubling the e-commerce client base by year-end.

AppLovin signed a definitive agreement to sell its mobile gaming division for $900 million, comprising $500 million in cash and $400 million in equity in a private entity. The divestment will allow the company to reallocate engineering and data-science resources toward ad-tech innovations. Management anticipates redeploying at least 60% of proceeds into product development for AI-driven ad formats and creative automation tools, positioning AppLovin to compete more directly with established digital advertising incumbents.