Liftoff Mobile Q3 2026 earnings: $86.7M profit
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Liftoff Mobile, Inc. (LFTO) reported third-quarter 2026 revenue of $237.521 million, up 32% year over year, and net income of $86.711 million versus a $5.730 million loss a year earlier. Adjusted EBITDA, a non-GAAP measure, was $144.949 million, up 45%; its margin was 61%, compared with 56%.
Fourth-quarter 2026 guidance is revenue of $244 million to $249 million and Adjusted EBITDA of $150 million to $154 million, with a 61% to 62% margin. Full-year 2026 guidance is revenue of $907 million to $912 million and Adjusted EBITDA of $547 million to $551 million, with a 60% margin. Liftoff said it did not provide GAAP reconciliations for projected Adjusted EBITDA measures because reconciliation items may be uncertain and variable.
Cash and cash equivalents were $385.651 million as of September 30, 2026. Liftoff disclosed a material weakness identified in internal control over financial reporting and plans to discontinue separate reporting of Core Advertising Revenue beginning in the first quarter of 2027.
3 points · 0 major1 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQ3 revenue rose 32% year over year to $237.521 million.
- Moderate pointQ3 Adjusted EBITDA rose 45% year over year to $144.949 million.
- Moderate pointQ3 net income was $86.711 million, versus a year-earlier loss.
Negative
- Major pointLiftoff disclosed a material weakness identified in internal control over financial reporting.
Filing Explained
At September 30, 169,362,099 common shares were outstanding versus 123,002,518 at year-end, reducing existing holders’ percentage ownership absent offsetting changes.
This Form 8-K reports Liftoff’s results for the quarter ended
The balance sheet distinguishes authorized common shares from shares issued and outstanding; the dilution mechanism concerns additional shares actually issued, not authorization alone.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $237.521 million
Net income: $86.711 million
Adjusted EBITDA: $144.949 million
+5 more
8 metrics
Revenue
$237.521 million
Third quarter 2026; up 32% year over year
Net income
$86.711 million
Third quarter 2026; compared with a $5.730 million net loss in Q3 2025
Adjusted EBITDA
$144.949 million
Third quarter 2026; up 45% year over year
Adjusted EBITDA Margin
61%
Third quarter 2026; up 5 percentage points year over year
Q4 revenue guidance
$244 million to $249 million
Fourth quarter 2026
Q4 Adjusted EBITDA guidance
$150 million to $154 million
Fourth quarter 2026
Full-year revenue guidance
$907 million to $912 million
Fiscal year 2026
Full-year Adjusted EBITDA guidance
$547 million to $551 million
Fiscal year 2026
Key Terms
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Core Advertising Revenue, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted EBITDA Margin financial
"Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
Free Cash Flow financial
"We define Free Cash Flow as net cash provided by operating activities less purchase and capitalization"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Core Advertising Revenue financial
"discontinue separate reporting of Core Advertising Revenue"
stock-based compensation financial
"exclude stock-based compensation expense"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
Earnings Snapshot
Revenue: $237.521 million · Guidance included
Third quarter 2026
Revenue
$237.521 million
Up 32% year over year
Net income (loss)
$86.711 million
Compared with a $5.730 million net loss in Q3 2025
Adjusted EBITDA
$144.949 million
Up 45% year over year
Adjusted EBITDA Margin
61%
Up 5 percentage points year over year
Guidance
Q4 2026: revenue $244 million to $249 million; Adjusted EBITDA $150 million to $154 million; Adjusted EBITDA Margin 61% to 62%. Fiscal 2026: revenue $907 million to $912 million; Adjusted EBITDA $547 million to $551 million; Adjusted EBITDA Margin 60%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were LFTO's Q3 2026 revenue and Adjusted EBITDA?
Revenue was $237.521 million, up 32% year over year, and Adjusted EBITDA was $144.949 million, up 45% year over year. Adjusted EBITDA is a non-GAAP measure that Liftoff presents alongside its GAAP results.
What is LFTO's 2026 revenue and Adjusted EBITDA guidance?
For Q4 2026, Liftoff guided to revenue of $244 million to $249 million and Adjusted EBITDA of $150 million to $154 million. Full-year 2026 guidance is revenue of $907 million to $912 million and Adjusted EBITDA of $547 million to $551 million.
When will Liftoff stop reporting Core Advertising Revenue separately?
Liftoff plans to discontinue separate reporting of Core Advertising Revenue beginning in the first quarter of 2027. It said revenue outside its core advertising platforms is now de minimis and total GAAP revenue provides a clear view of business performance.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 12, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (650 ) 319-7151
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | |||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On November 12, 2026, Liftoff Mobile, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
The information in this Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Exhibit Description | |||||||
99.1 | Press Release, dated November 12, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| LIFTOFF MOBILE, INC. | ||||||||
Date: November 12, 2026 | /s/ Tarek Kutrieh | |||||||
| President and Chief Financial Officer | ||||||||
| (Principal Financial Officer) | ||||||||
Exhibit 99.1
Liftoff Mobile Announces Third Quarter 2026 Financial Results
REDWOOD CITY, CA – November 12, 2026 – Liftoff Mobile, Inc. (“Liftoff”) (NASDAQ: LFTO), a global leader in performance marketing and monetization solutions for the app economy, today announced financial results for the quarter ended September 30, 2026.
Third Quarter 2026 Financial Highlights:
| (In millions, except percentages) | Q3 FY26 | Q2 FY26 | Q3 FY25 | Q/Q Change | Y/Y Change | ||||||||||||||||||||||||
| Revenue | $ | 238 | $ | 220 | $ | 180 | 8 | % | 32 | % | |||||||||||||||||||
| Net income (loss) | $ | 87 | $ | (4) | $ | (6) | NM | NM | |||||||||||||||||||||
Adjusted EBITDA1 | $ | 145 | $ | 132 | $ | 100 | 10 | % | 45 | % | |||||||||||||||||||
| Net income (loss) Margin | 37 | % | (2) | % | (3) | % | 38 | pts | 40 | pts | |||||||||||||||||||
Adjusted EBITDA Margin1 | 61 | % | 60 | % | 56 | % | 1 | pt | 5 | pts | |||||||||||||||||||
_________
Note: Variances that are not meaningful (“NM”) are not presented in the table above. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
“Our third quarter results came in well above the high end of our previously published guidance and showed the breadth of the app economy at work,” said Jeremy Bondy, Liftoff’s Chief Executive Officer. “We saw strength across key app categories, as better performance for our customers drove more investment in our platform and strengthened our flywheel. We’re confident that our platform is purpose built to capture user attention and monetization for our customers.”
“Our strong Q3 financial results demonstrated the earnings power of our business as we build our track record as a public company,” added Tarek Kutrieh, Liftoff’s President and Chief Financial Officer. “We remain focused on delivering durable and profitable growth and strong cash generation.”
Business Highlights:
•Core Advertising Revenue2 was $237 million in the third quarter, an increase of 33% year-over-year and 8% quarter-over-quarter.
•Net Income was $87 million in the third quarter, an increase of $92 million year-over-year and an increase of $91 million quarter-over-quarter.
•Trailing 12-month Net Cash provided by Operating Activities was $303 million, an increase of 107% from the corresponding period of the prior year.
•Trailing 12-month Free Cash Flow1 was $249 million, an increase of 158% from the corresponding period of the prior year.
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Fourth Quarter 2026 Financial Guidance Summary3
| (In millions, except percentages) | Low | High | |||||||||
| Revenue | $ | 244 | $ | 249 | |||||||
| Adjusted EBITDA | $ | 150 | $ | 154 | |||||||
| Adjusted EBITDA Margin | 61 | % | 62 | % | |||||||
Fiscal Year 2026 Financial Guidance Summary3
| (In millions, except percentages) | Low | High | |||||||||
| Revenue | $ | 907 | $ | 912 | |||||||
| Adjusted EBITDA | $ | 547 | $ | 551 | |||||||
| Adjusted EBITDA Margin | 60 | % | 60 | % | |||||||
_________
1 For a discussion on how we define, use, and calculate non-GAAP financial measures and a reconciliation thereof to the most directly comparable GAAP financial measures, see “Key Operating and Financial Metrics” and the tables at the end of this press release.
2 See “Key Operating and Financial Metrics” for additional information on how we define Core Advertising Revenue.
3 We have not provided the most comparable GAAP metric or a GAAP reconciliation for certain forward-looking non-GAAP metrics—specifically Adjusted EBITDA and Adjusted EBITDA Margin—as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results.
Conference Call Information
The Company will host a conference call today at 2:00 PM PT / 5:00 PM ET during which management will discuss the Company’s quarterly results and provide commentary on business performance. The call will be hosted by Jeremy Bondy, Chief Executive Officer, and Tarek Kutrieh, President and Chief Financial Officer.
The conference call may be accessed on the Company’s website at: https://investors.liftoff.ai. A replay will also be available under the ‘News & Events’ section of the Company’s Investor Relations website.
About Liftoff
Liftoff (NASDAQ: LFTO) is a leading growth and monetization engine built for the mobile app economy. Its AI-powered platform, Cortex®, unifies marketing, creative, and monetization to deliver measurable performance at scale across the app lifecycle. Liftoff enables advertisers to unlock profitable user growth while helping app publishers maximize revenue with advanced ad monetization technology. Founded in 2012 and headquartered in Redwood City, California, Liftoff supports a diverse, global customer base across gaming, consumer, and emerging app categories.
Contacts
Investor Relations Jenn Kettnich investors@liftoff.ai | Media Relations Natalie Breitbach press@liftoff.ai | ||||
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CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that are not historical facts. Forward-looking statements include, but are not limited to, statements about: (1) our fourth quarter and full year 2026 guidance and other projections of revenues, expenses (including cost of revenue, research and development, sales and marketing, and general and administrative expenses), income or loss, earnings or loss per share, cash flow, margins, profitability, capital expenditures, liquidity, capital resources, or other financial or operating items, including the sufficiency of our cash resources to meet our liquidity needs and our intended use of the proceeds from our initial public offering (our “IPO”); (2) our plans, strategies, and objectives, including those relating to our business model, growth strategy, market opportunity, customer retention and expansion, acquisition of new customers, technology innovation, Cortex®, and AI-related initiatives; (3) future financial or operating performance, including trends in our key operating and financial metrics; (4) our expectations regarding macroeconomic conditions, market trends, competition, regulatory developments, taxes (including the effects of recent tax legislation), public company costs, indebtedness, interest rates, and other risks affecting our business; (5) our expectations regarding acquisitions, investments, dispositions, financings, hedging arrangements, repayments, refinancings, or repurchases of our indebtedness, or other strategic transactions we may pursue; (6) the settlement and remeasurement of contingent consideration and earnout obligations; and (7) assumptions underlying any of the foregoing. We may, in some cases, use words such as “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “foreseeable,” “intend,” “may,” “plan,” “potentially,” “predict,” “project,” “seek,” “should,” “will,” or “would,” or similar words or phrases that convey uncertainty of future events or outcomes, to identify forward-looking statements in this press release. Factors that may cause actual results to differ from expected results include those described in our filings with the Securities and Exchange Commission (the “SEC”), including those set forth in the “Risk Factors” section in our final prospectus (the “IPO Prospectus”) filed with the SEC in connection with our IPO on June 4, 2026 pursuant to Rule 424(b)(4) under the Securities Act relating to our registration statement on Form S-1 (File No. 333-295144).
The forward-looking statements contained in this press release are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. There are a number of factors, many of which are beyond our control, that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, among others, risks related to: our ability to retain existing customers, expand customer usage, and attract new customers; the fact that we generally do not have long-term commitments from customers; advertiser demand, marketing budgets, seasonality, customer churn or consolidation, legal and regulatory developments affecting the advertiser verticals we serve, and broader macroeconomic, market, public health, and geopolitical conditions, including inflation, interest rates, tariffs, and U.S.-China tensions; our dependence on mobile operating systems, app stores, large internet and technology companies, third-party platforms, cloud infrastructure providers, supply partners, and other participants in the mobile advertising ecosystem; competition and rapid changes in technology, industry standards, and customer needs; our ability to collect, use, disclose, and otherwise process data, and evolving privacy, data protection, information security, consumer protection, advertising, tracking, targeting, protection of minors, AI, and other legal and regulatory requirements; fraud, malware, cybersecurity incidents, system failures, service interruptions, and other technical or operational disruptions; our ability to maintain and scale our technology, including Cortex and other AI capabilities, and develop and introduce new products and services; changes in app store policies, user opt-in or opt-out choices, ad-blocking technologies, and other limitations on mobile advertising; our reliance on the continued growth and health of the mobile app ecosystem, including mobile gaming and the broader app economy; fluctuations in our operating results, revenue concentration, market opportunity estimates, and key metrics; international operations, including risks associated with China, trade controls, tariffs, sanctions, anti-corruption laws, and foreign currency exchange; our ability to attract, retain, and motivate key personnel and sales teams and manage public company costs; acquisitions, investments, partnerships, financings, and other strategic transactions; tax matters, accounting standards, estimates, goodwill or other impairment, stock-based compensation, and internal controls, including the material weakness identified in our internal control over financial reporting; legal proceedings and intellectual property and open source software matters; ownership concentration and risks related to our common stock, including stock price volatility, future sales, and dilution; and our substantial indebtedness, restrictive debt covenants, interest rate exposure, debt service obligations, liquidity, and ability to raise additional capital. For a more detailed discussion of these and other factors, see the “Risk Factors” section in the IPO Prospectus. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual results may vary in material respects from those expressed or implied in these forward-looking statements.
The forward-looking statements included in this press release speak only as of the date of this press release or as of the date they are made, as applicable. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, investments, or other strategic transactions we may make. Except as otherwise required by law, we disclaim any intent or obligation to update any “forward-looking statement” made in this press release to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results over time.
3
Key Operating and Financial Metrics
We monitor the following key metrics to help us evaluate the health of our business, identify trends affecting our growth, formulate goals and objectives, and make strategic decisions. We believe these non-GAAP and operational measures are useful in evaluating our performance, in addition to our financial results prepared in accordance with GAAP.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies, including peer companies, may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. We also strongly urge you to review the reconciliation to the corresponding GAAP financial measures set forth at the end of this press release. To properly and prudently evaluate our business, we encourage you to review Liftoff’s financial information in its entirety and not to rely on a single financial measure to evaluate our business.
Adjusted EBITDA and Adjusted EBITDA Margin
We report our financial results in accordance with GAAP, however, management believes that Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP measures, provide users of our financial information with useful supplemental information enabling a comparison of our performance across periods. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide visibility to the underlying continuing operating performance of our business. Management uses Adjusted EBITDA and Adjusted EBITDA Margin to evaluate and manage the performance of our business, make resource allocation decisions, and compensate key personnel, as we believe they provide enhanced understanding with respect to the results of our operations.
We define Adjusted EBITDA as net income (loss) adjusted for interest expense, net, income tax expense, depreciation and amortization expense, stock-based compensation, other (expense) income, net, and further adjusted for certain items that impact comparison of the performance of our businesses either period-over-period or with other businesses as more fully described below. We also disclose Adjusted EBITDA Margin, which is calculated as Adjusted EBITDA divided by revenue.
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures and are presented for supplemental informational purposes only and should not be considered as alternatives or substitutes to financial information presented in accordance with GAAP. These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations that are necessary to run our business. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies, including peer companies, may not publish these or similar metrics. Thus, our Adjusted EBITDA and Adjusted EBITDA Margin should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. Some of the limitations and other factors to consider include:
•Adjusted EBITDA and Adjusted EBITDA Margin exclude the recurring, non-cash expenses of depreciation and amortization of property and equipment, capitalized internal-use software, and finite-lived intangible assets, and although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future;
•Adjusted EBITDA and Adjusted EBITDA Margin do not reflect changes in or cash requirements for our working capital needs;
•Adjusted EBITDA and Adjusted EBITDA Margin exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, an important part of how we attract and retain our employees and a significant recurring expense in our business;
•Adjusted EBITDA and Adjusted EBITDA Margin do not reflect the interest expense, net or the cash requirements to service interest or principal payments on our indebtedness;
•Adjusted EBITDA and Adjusted EBITDA Margin exclude the non-cash charges related to debt extinguishments, impairments of primarily capitalized internal-use software, and revaluation of contingent consideration and post-conversion earnout share liability, as these impact the comparability of our business across periods and do not relate to the continuing operating performance of our business;
4
•Adjusted EBITDA and Adjusted EBITDA Margin exclude costs related to our IPO, integration, non-recurring transactions and expenses, and reorganization severance costs, as these impact the comparability of our business across periods and do not relate to the continuing operating performance of our business;
•Adjusted EBITDA and Adjusted EBITDA Margin do not reflect our income tax expense provision; and
•Adjusted EBITDA and Adjusted EBITDA Margin exclude other (expense) income, net, which primarily relate to non-operating foreign exchange gains and losses.
Adjusted EBITDA is not a liquidity measure and should not be considered as discretionary cash available to us to reinvest in the growth of our business or to distribute to stockholders or as a measure of cash that will be available to us to meet our obligations.
Free Cash Flow
We define Free Cash Flow as net cash provided by operating activities less purchase and capitalization of property, equipment, and software. We subtract purchase and capitalization of property, equipment, and software in our calculation of Free Cash Flow, as we believe these expenditures represent ongoing investments required to support and grow our business. Our definition may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish Free Cash Flow or similar metrics. Thus, our Free Cash Flow, which is a non-GAAP measure, should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.
Free Cash Flow is a measure of liquidity that provides useful information to our management, investors, and others in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities, including investing in our business. Free Cash Flow has certain limitations in that it does not represent our residual cash flow for discretionary expenditures and our non-discretionary commitments. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.
Core Advertising Revenue
Core Advertising Revenue represents revenue generated from our current advertising platforms, which are predominantly powered by Cortex-backed demand solutions (collectively, “Core Advertising”). Core Advertising represents the foundation of our business moving forward, reflecting our strategic focus on Cortex-enabled solutions and anticipated long-term growth within performance advertising. We believe Core Advertising revenue, and its historical growth, is an important metric as it aligns with the rollout of Cortex in 2023 and is more representative of our growth potential versus total revenue in historical periods. Beginning in the first quarter of 2027, we plan to discontinue separate reporting of Core Advertising Revenue. Revenue outside our core advertising platforms is now de minimis, and total GAAP revenue provides a clear view of the business’s performance.
5
Liftoff Mobile, Inc.
Condensed Consolidated Balance Sheets
As of September 30, 2026 and December 31, 2025
(In thousands, except share and per share data)
(Unaudited)
| As of | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 385,651 | $ | 133,306 | |||||||
Accounts receivable, net | 378,364 | 355,277 | |||||||||
Income tax receivable | 1,289 | 1,651 | |||||||||
Prepaid expenses and other current assets | 20,016 | 26,891 | |||||||||
Total current assets | 785,320 | 517,125 | |||||||||
Restricted cash | 789 | 789 | |||||||||
Property, equipment, and software, net | 133,129 | 115,968 | |||||||||
Intangible assets, net | 140,631 | 178,677 | |||||||||
Goodwill | 1,056,202 | 1,057,180 | |||||||||
Other assets | 30,866 | 31,590 | |||||||||
Total assets | $ | 2,146,937 | $ | 1,901,329 | |||||||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 354,513 | $ | 356,519 | |||||||
Accrued liabilities | 99,793 | 77,216 | |||||||||
Current portion of long-term debt | 18,550 | 18,550 | |||||||||
Other current liabilities | 23,117 | 29,169 | |||||||||
Total current liabilities | 495,973 | 481,454 | |||||||||
Deferred tax liability | 43,643 | 29,009 | |||||||||
Long-term debt, net | 1,388,371 | 1,801,150 | |||||||||
Other liabilities | 118,925 | 126,597 | |||||||||
Total liabilities | 2,046,912 | 2,438,210 | |||||||||
Redeemable convertible preferred stock: | |||||||||||
Series A redeemable convertible preferred stock ($0.0001 par value – Nil and 1,000,000 shares authorized as of September 30, 2026 and December 31, 2025, respectively; Nil and 425,000 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) Liquidation preference of nil and $425,000 as of September 30, 2026 and December 31, 2025, respectively. | — | 414,607 | |||||||||
Stockholders’ equity (deficit): | |||||||||||
Preferred stock ($0.0001 par value - 700,000,000 and nil shares authorized as of September 30, 2026 and December 31, 2025, respectively, no shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) | — | — | |||||||||
Common Stock ($0.0001 par value - 7,000,000,000 and 234,000,000 shares authorized as of September 30, 2026 and December 31, 2025, respectively; 169,362,099 and 123,002,518 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively) | 17 | 12 | |||||||||
Additional paid-in capital | 926,986 | 5,867 | |||||||||
Accumulated other comprehensive loss | (2,818) | (1,396) | |||||||||
Accumulated deficit | (824,160) | (955,971) | |||||||||
Total stockholders’ equity (deficit) | 100,025 | (951,488) | |||||||||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | $ | 2,146,937 | $ | 1,901,329 | |||||||
6
Liftoff Mobile, Inc.
Condensed Consolidated Statements of Operations
For the three and nine months ended September 30, 2026 and 2025
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenue | $ | 237,521 | $ | 179,532 | $ | 662,668 | $ | 491,585 | |||||||||||||||
| Costs and operating expenses: | |||||||||||||||||||||||
| Cost of revenue, excluding depreciation and amortization | 28,771 | 25,479 | 85,789 | 74,442 | |||||||||||||||||||
| General and administrative | 37,791 | 36,924 | 97,625 | 116,037 | |||||||||||||||||||
| Research and development | 25,729 | 26,756 | 87,616 | 84,605 | |||||||||||||||||||
| Sales and marketing | 17,477 | 17,103 | 55,806 | 47,514 | |||||||||||||||||||
| Depreciation and amortization | 23,992 | 25,517 | 68,723 | 76,189 | |||||||||||||||||||
Total costs and operating expenses | 133,760 | 131,779 | 395,559 | 398,787 | |||||||||||||||||||
Income from operations | 103,761 | 47,753 | 267,109 | 92,798 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
| Interest expense, net | (24,965) | (31,508) | (93,279) | (91,150) | |||||||||||||||||||
| Loss on debt extinguishment | — | (5,264) | (7,366) | (5,264) | |||||||||||||||||||
| Post-conversion earnout share liability revaluation | 1,416 | (1,096) | 4,091 | (1,096) | |||||||||||||||||||
| Contingent consideration revaluation | 14,382 | (13,200) | 1,753 | (18,300) | |||||||||||||||||||
| Other (expense) income, net | (600) | (113) | (798) | (1,105) | |||||||||||||||||||
Income (loss) before income taxes | 93,994 | (3,428) | 171,510 | (24,117) | |||||||||||||||||||
Income tax expense | (7,283) | (2,302) | (39,699) | (1,528) | |||||||||||||||||||
Net income (loss) | $ | 86,711 | $ | (5,730) | $ | 131,811 | $ | (25,645) | |||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | 0.51 | $ | (0.05) | $ | 0.84 | $ | (0.19) | |||||||||||||||
Diluted | $ | 0.47 | $ | (0.05) | $ | 0.74 | $ | (0.19) | |||||||||||||||
Weighted-average common shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||||||||||||
Basic | 169,344,153 | 122,867,399 | 143,338,981 | 137,823,560 | |||||||||||||||||||
Diluted | 182,524,693 | 122,867,399 | 156,839,864 | 137,823,560 | |||||||||||||||||||
7
Liftoff Mobile, Inc.
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2026 and 2025
(In thousands)
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 131,811 | $ | (25,645) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 68,723 | 76,189 | |||||||||
Amortization of debt discount and issuance costs | 3,120 | 4,383 | |||||||||
Provision for credit losses | 3,005 | 2,390 | |||||||||
Stock-based compensation expense | 38,846 | 5,495 | |||||||||
Non-cash lease expense | 3,998 | 3,646 | |||||||||
Deferred income tax | 14,155 | (1,479) | |||||||||
| Loss on debt extinguishment | 7,366 | 5,264 | |||||||||
Contingent consideration revaluation | (1,753) | 18,300 | |||||||||
| Post-conversion earnout share liability revaluation | (4,091) | 1,096 | |||||||||
Change in operating assets and liabilities: | |||||||||||
| Accounts receivable | (25,874) | (66,966) | |||||||||
Income tax receivable | 321 | 713 | |||||||||
Prepaid expenses and other current assets | 4,057 | (7,788) | |||||||||
Other assets | (2,322) | (1,534) | |||||||||
Accounts payable | (2,303) | 83,534 | |||||||||
Accrued liabilities | 23,878 | 21,199 | |||||||||
Other current liabilities | (1,905) | (3,440) | |||||||||
Other long-term liabilities | (2,546) | 3,255 | |||||||||
Net cash provided by operating activities | 258,486 | 118,612 | |||||||||
Cash flows from investing activities: | |||||||||||
| Purchase and capitalization of property, equipment, and software | (41,585) | (37,756) | |||||||||
Net cash used in investing activities | (41,585) | (37,756) | |||||||||
Cash flows from financing activities: | |||||||||||
| Proceeds from the exercise of stock options | 2,500 | 1,322 | |||||||||
| Proceeds from issuance of preferred stock | — | 409,545 | |||||||||
| Proceeds from post-conversion earnout share liability | — | 5,393 | |||||||||
| Proceeds from debt | — | 693,686 | |||||||||
| Proceeds from initial public offering, net of underwriting discounts and commissions | 472,397 | — | |||||||||
Repurchase of common stock and vested equity awards from stockholders | — | (404,287) | |||||||||
Payment of debt principal | (423,074) | (439,660) | |||||||||
| Payment of debt issuance costs | — | (1,942) | |||||||||
| Dividend distribution to stockholders | — | (340,432) | |||||||||
Payment of deferred offering costs | (16,374) | — | |||||||||
Net cash provided by (used in) financing activities | 35,449 | (76,375) | |||||||||
Effect of exchange rate on cash, cash equivalents, and restricted cash | (5) | 737 | |||||||||
Net increase in cash, cash equivalents, and restricted cash | 252,345 | 5,218 | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 134,095 | 99,088 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 386,440 | $ | 104,306 | |||||||
8
Liftoff Mobile, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
For the three months ended September 30, 2026, June 30, 2026 and September 30, 2025
The following table reconciles net income (loss) and net income (loss) margin, the most comparable GAAP financial measures, to Adjusted EBITDA and Adjusted EBITDA Margin, respectively, for the periods presented:
| Three Months Ended September 30, | Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||
| (in thousands, except percentages) | 2026 | 2026 | 2025 | ||||||||||||||
| Net income (loss) | $ | 86,711 | $ | (4,231) | $ | (5,730) | |||||||||||
| Interest expense, net | 24,965 | 33,339 | 31,508 | ||||||||||||||
| Income tax expense | 7,283 | 23,461 | 2,302 | ||||||||||||||
| Depreciation and amortization | 23,992 | 22,963 | 25,517 | ||||||||||||||
Stock-based compensation expense (a) | 13,531 | 28,223 | 10,989 | ||||||||||||||
| Contingent consideration revaluation | (14,382) | 17,529 | 13,200 | ||||||||||||||
| Other expense (income), net | 600 | 86 | 113 | ||||||||||||||
Transaction costs (b) | 2,324 | (468) | 11,292 | ||||||||||||||
Other non-recurring expenses (c) | 1,341 | 4,183 | 4,706 | ||||||||||||||
Loss on debt extinguishment (d) | — | 7,366 | 5,264 | ||||||||||||||
| Post-conversion earnout share liability revaluation | (1,416) | (139) | 1,096 | ||||||||||||||
| Adjusted EBITDA | $ | 144,949 | $ | 132,312 | $ | 100,257 | |||||||||||
| Net income (loss) Margin | 37 | % | (2) | % | (3) | % | |||||||||||
| Adjusted EBITDA Margin | 61 | % | 60 | % | 56 | % | |||||||||||
______________
(a) On October 4, 2021, we declared a distribution to employees and other holders of outstanding shares and/or stock-based compensation awards (whether vested or unvested) issued prior to August 21, 2021 (the “2021 Distribution”). Similar distributions were also declared on November 11, 2024 (the “2024 Distribution”) and September 12, 2025 (the “2025 Distribution”). Stock-based compensation expense includes $1.3 million, $3.9 million and $4.9 million related to distributions declared in 2025 to the holders of stock options granted to certain members of our senior leadership team that vest in part based on returns achieved by our primary private-equity sponsor, and the vesting and payment of the 2021, 2024, and 2025 Distributions for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. Distributions of this nature are not expected to recur as a public company.
(b) Represents costs for transaction-related services, such as investment banking, legal, accounting, tax, and diligence, primarily incurred in connection with capital markets activities, including debt refinancing efforts and General Atlantic’s minority investment.
(c) Represents non-recurring third-party professional fees in preparation of becoming a public company that were not capitalizable.
(d) For the three months ended June 30, 2026, consisted of a write-off of $7.4 million of unamortized issuance costs. For the three months ended September 30, 2025, consisted of a write-off of $4.9 million of unamortized issuance costs and $0.4 million of fees paid to lenders and third parties.
9
Liftoff Mobile, Inc.
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow
For the twelve months ended September 30, 2026 and 2025
The following table reconciles net cash provided by operating activities, the most comparable GAAP financial measure to Free Cash Flow for the periods presented:
| Twelve Months Ended September 30, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| Net cash provided by operating activities | $ | 303,228 | $ | 146,233 | |||||||
| Less: | |||||||||||
| Purchase and capitalization of property, equipment, and software | (53,964) | (49,646) | |||||||||
| Free Cash Flow | $ | 249,264 | $ | 96,587 | |||||||
| Net cash used in investing activities | $ | (53,964) | $ | (49,646) | |||||||
| Net cash provided by (used in) financing activities | $ | 33,251 | $ | (204,270) | |||||||
10
Liftoff Mobile, Inc.
Stock-Based Compensation Expense
For the three and nine months ended September 30, 2026 and 2025
The following table presents stock-based compensation expense for the periods (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Research and development | $ | 627 | $ | 2,584 | $ | 12,630 | $ | 17,912 | |||||||||||||||
| Sales and marketing | 650 | 1,497 | 7,256 | 4,951 | |||||||||||||||||||
| General and administrative | 12,025 | 6,733 | 27,895 | 13,250 | |||||||||||||||||||
| Cost of revenue | 229 | 175 | 585 | 561 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 13,531 | $ | 10,989 | $ | 48,366 | $ | 36,674 | |||||||||||||||
11