AppLovin reports strong Q3 results while regulatory scrutiny continues

AppLovin posted solid third-quarter financials this week amid ongoing regulatory and legal attention focused on its data practices and ad technology tools.

The company reported $1.4 billion in revenue for Q3, a 68% increase compared to the same period last year. Free cash flow rose 92% year over year, reaching $1.05 billion. Following the earnings release, AppLovin’s stock rose in after-hours trading and continued trading higher the next morning.

The results come during a period of increased scrutiny. The U.S. Securities and Exchange Commission recently launched an investigation into AppLovin’s data collection methods, including allegations that the company used device fingerprinting to target ads. Short sellers have also accused AppLovin of extracting proprietary identifiers without user consent, and multiple state attorneys general are reported to be reviewing the company’s consumer data practices. AppLovin recently shut down Array, an app distribution tool that critics said installed apps on devices without explicit user approval.

During the earnings call, CEO Adam Foroughi acknowledged the regulatory environment but did not offer new detail on the investigations, stating only that the company is operating under “heightened scrutiny” and is focused on compliance and transparency.

A key focus of the call was Axon Ads Manager, AppLovin’s new AI-powered self-serve advertising platform. The company launched the tool last month in an invite-only beta. AppLovin says it is limiting access to reduce onboarding risks and ensure system stability before expanding availability in 2026. The platform is designed to automate campaign optimization and extend AppLovin’s advertising reach further into ecommerce and connected TV markets, beyond its core gaming audience.

Foroughi noted that the platform remains in early development and emphasized the need to refine onboarding processes and tools before opening it widely.

During the discussion, one investor raised the possibility of AppLovin participating in any future divestiture of Google’s ad technology assets if required by the ongoing antitrust case. Foroughi played down the prospect, saying the company is currently more focused on bringing more advertisers into its own ecosystem rather than expanding supply through major acquisitions.

AppLovin has been positioning itself to compete in markets where automated campaign optimization and direct advertiser access are growing priorities. The pace of adoption for Axon Ads Manager and the outcome of ongoing regulatory reviews are expected to shape the company’s trajectory in the year ahead.