The news: AppLovin beat expectations in Q1 2025, riding a wave of mobile advertising growth while formally exiting the gaming business. The company’s software platform—powered by its AXON 2.0 ad engine—continues to drive advertiser demand and platform stickiness. In tandem, AppLovin announced the sale of its app portfolio to Tripledot Studios, signaling a full embrace of its adtech identity.

This comes amid strong, sustained growth in mobile ad formats overall, even as growth rates begin to level off.

By the numbers:

• AppLovin’s advertising revenues grew more than 70% YoY, outperforming both analyst expectations and broader market trends.
• The apps business shrank as expected, falling 14%, ahead of its planned divestiture.