AppLovin Corporation stock research
FY2025 Q2
AppLovin (APP) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was moderately higher. The gross margin improved compared to both the immediately preceding quarter and the year-ago quarter, reflecting that gross profit grew more quickly than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was moderately higher. The gross margin improved compared to both the immediately preceding quarter and the year-ago quarter, reflecting that gross profit grew more quickly than revenue.
- The improvement in gross margin relative to both comparison periods was driven by gross profit growth outpacing revenue growth. Cost of revenue as a share of revenue decreased, supporting the higher margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were substantially higher, cost of revenue was higher, and gross margin improved meaningfully.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.7%
Gross profit
$1.1B
Revenue
$1.3B
Cost of revenue
$155.1M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+4.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $835.2M | $714.3M | $120.9M | 85.5% |
| Dec 31, 2024 | $999.5M | $846.1M | $153.4M | 84.7% |
| Mar 31, 2025 | $1.2B | $1.0B | $151.7M | 86.9% |
| Jun 30, 2025 | $1.3B | $1.1B | $155.1M | 87.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.8 pts
Year-over-year change
Jun 30, 2024
+4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin relative to both comparison periods was driven by gross profit growth outpacing revenue growth. Cost of revenue as a share of revenue decreased, supporting the higher margin.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were substantially higher, cost of revenue was higher, and gross margin improved meaningfully.
Monitor whether cost of revenue trends remain stable relative to revenue, as its growth rate could affect future gross margin.