AppLovin reports a 77% revenue jump but misses estimates, stock dips post-trading.

AppLovin reported a 77% year-over-year revenue increase to $1.26 billion in Q2 2025, missing analyst estimates by $50 million but beating on EPS at $2.39. Despite the revenue miss, the company expects Q3 revenue of $1.32-$1.34 billion and adjusted EBITDA of $1.07-$1.09 billion. AppLovin's strong earnings were driven by a shift towards AI-powered advertising, with a 99% increase in adjusted EBITDA to $1.018 billion. The stock dipped in after-hours trading, possibly due to concerns about the divestiture of its gaming app division.