Applovin Q4 Revenue Surges 66% to $1.66B with 88% FCF Growth
Applovin recorded Q4 revenue of $1.66 billion, up 66% year-over-year, and reported EPS of $3.24 versus $2.96 expected, with free cash flow rising 88% to $1.31 billion and cash at $2.5 billion. It sees Q1 revenue of $1.745–1.775 billion with 84% EBITDA margins; Jefferies cut its price target to $700 while Benchmark kept $775.
1. Q4 2025 Results
Applovin posted Q4 revenue of $1.66 billion, up 66% year-over-year, exceeding the $1.61 billion consensus. EPS came in at $3.24, above the $2.96 estimate, while free cash flow jumped 88% to $1.31 billion, boosting cash to $2.5 billion.
2. Capital Returns and Cash Position
The company repurchased $481.7 million of shares in Q4 and returned $2.58 billion over full-year 2025. With $2.5 billion on hand and robust free cash flow, Applovin has strong flexibility for growth initiatives or shareholder returns.
3. Q1 2026 Guidance
Management targets Q1 revenue between $1.745 billion and $1.775 billion, implying 5%–7% sequential growth, and sees adjusted EBITDA of $1.465 billion to $1.495 billion for an 84% margin.
4. Analyst Reactions
Jefferies lowered its price target from $860 to $700 while maintaining a Buy rating, citing valuation pressures despite strong fundamentals. Benchmark kept its $775 price target and Buy rating, highlighting continued growth potential in AI and gaming tools.