Core Thesis - AppLovin Corporation is transitioning from a mobile gaming publisher to a pure-play AI-powered advertising technology platform, which has led to significant revenue growth and improved profitability metrics [2][6]. Financial Performance - In Q2 2025, AppLovin reported a revenue growth of 77% year-over-year, with Software Platform revenue reaching $1.26 billion and an adjusted EBITDA margin of 81% [2][4]. - Profitability metrics have strengthened, with gross, EBITDA, and net margins rising above 80%, supported by disciplined cost management [5]. Business Strategy - The divestiture of its Apps business to Tripledot Studios for $400 million has allowed AppLovin to focus on its high-growth Software Platform [2]. - The company operates globally, connecting over 1.4 billion daily active users through its AI-driven platforms, which provide a competitive advantage through economies of scale and proprietary technology [3]. Market Position - AppLovin is increasingly recognized as a top-tier adtech platform, consistently ranked just behind Google and Meta, with strong retention and share-of-wallet gains in gaming and e-commerce [4]. - The upcoming launch of Axon Ads Manager is expected to unlock additional revenue opportunities in international markets and small businesses [4]. Investment Outlook - Despite a forward EV/Sales of 35.9x, the premium is justified by high revenue growth, robust free cash flow, and potential for further international expansion, making AppLovin a compelling investment [5].