We present a system that rectifies and stabilizes video sequences on mobile devices with rolling-shutter cameras. The system corrects for rolling-shutter distortions using measurements from accelerometer and gyroscope sensors, and a 3D rotational distortion model. In order to obtain a stabilized video, and at the same time keep most content in view, we propose an adaptive low-pass filter algorithm to obtain the output camera trajectory. The accuracy of the orientation estimates has been evaluated experimentally using ground truth data from a motion capture system. We have conducted a user study, where the output from our system, implemented in iOS, has been compared to that of three other applications, as well as to the uncorrected video. The study shows that users prefer our sensor-based system.