Overview
- The company posted Q3 revenue of $1.41 billion and GAAP EPS of $2.45, with management citing its AI‑powered AXON platform and early self‑serve e‑commerce tests as growth drivers.
- Operating efficiency strengthened, with operating margin reaching 76.8% and free cash flow margin at 74.7%, delivering more than $1.05 billion in both operating and free cash flow.
- For Q4, AppLovin guided revenue to $1.57 billion to $1.60 billion and projected adjusted EBITDA of $1.29 billion to $1.32 billion, both above Street expectations.
- Capital returns accelerated as the board lifted the share repurchase authorization by $3.2 billion to $3.3 billion and the company bought back $571 million in stock during Q3.
- Shares rose roughly 6% following the report as analysts updated models, including Goldman Sachs raising its price target to $720, while the SEC review sparked by a whistleblower and short‑seller reports remains ongoing.