AppLovin Corporation (APP) Revenues Rose 77% YOY. Here’s Why

Core Insights - Sands Capital Select Growth Strategy reported a portfolio return of 6.3% in Q3 2025, underperforming the benchmark's 10.5% gain, driven by strong corporate earnings and AI enthusiasm [1] Company Overview - AppLovin Corporation (NASDAQ:APP) is a leading provider of advertising solutions for mobile game developers, with a one-month return of -7.10% and a 52-week gain of 78.47% [2][3] - As of November 26, 2025, AppLovin's stock closed at $586.37, with a market capitalization of $198.34 billion [2] Financial Performance - AppLovin's revenue increased by 68% year-over-year to approximately $1.405 billion in Q3 2025, with EBITDA margins reaching 81%, reflecting a 900 basis point expansion compared to the previous year [4] Strategic Initiatives - AppLovin plans to launch a self-serve ad manager in beta during Q4 2025, aiming to expand its reach beyond gaming into e-commerce, which is seen as a significant growth opportunity [3] - The company is adopting an AI-first approach, focusing on automation and AI-driven creative tools rather than relying on a large sales force [3]