Liftoff Mobile (LFTO) posts 35% Q2 revenue growth and strong cash flow
Rhea-AI Filing Summary
Liftoff Mobile, Inc. reported strong growth for the quarter ended June 30, 2026. Revenue was $219.5 million, up 35% year over year and 7% sequentially. The company posted a small net loss of $4.2 million, versus a $23.8 million loss a year earlier, while delivering very high profitability on a non-GAAP basis.
Adjusted EBITDA was $132.3 million with a 60% margin, up from $85.2 million and a 53% margin in Q2 2025. For the first six months of 2026, net income was $45.1 million and Adjusted EBITDA was $252.4 million with a 59% margin, reflecting improved operating leverage despite sizable interest expense.
Liftoff generated $151.5 million of operating cash flow in the first half and a trailing twelve‑month Free Cash Flow of $184.5 million. Cash and cash equivalents rose to $305.4 million, aided by IPO proceeds of $472.4 million and offset by $418.4 million of debt principal repayments, which reduced long‑term debt to $1.39 billion. All $414.6 million of redeemable convertible preferred stock was eliminated, and the large accumulated deficit narrowed, leaving a modest stockholders’ deficit. Guidance for fiscal 2026 calls for revenue of $870–$880 million and Adjusted EBITDA of $510–$518 million with a 59% margin, and near‑term guidance implies continued high margins.
Positive
- Revenue grew 35% year over year in Q2 2026 to $219.5 million, with Adjusted EBITDA up 55% to $132.3 million and margin expanding to 60%.
- On a year‑to‑date basis, Liftoff produced $45.1 million of net income and $252.4 million of Adjusted EBITDA, showing a swing from prior‑year losses.
- Trailing twelve‑month Free Cash Flow rose to $184.5 million, supported by $236.9 million in operating cash flow, indicating strong cash generation.
- The company strengthened its balance sheet by using IPO proceeds of $472.4 million to repay $418.4 million of debt principal and eliminate $414.6 million of redeemable preferred stock.
- Fiscal 2026 guidance targets revenue of $870–$880 million and Adjusted EBITDA of $510–$518 million with a 59% margin, implying sustained high profitability.
Negative
- Despite strong growth, Q2 2026 showed a net loss of $4.2 million, compared with net income of $49 million in Q1 2026, driven in part by non‑operating items.
- Interest expense remains significant at $33.3 million in Q2 and $68.3 million for the first half, reflecting a still‑high $1.39 billion long‑term debt balance.
- Non‑cash charges such as a $17.5 million contingent consideration revaluation and a $7.4 million loss on debt extinguishment continue to add volatility to GAAP earnings.
- Risk-factor disclosures reference substantial indebtedness, restrictive covenants, and a previously identified material weakness in internal control over financial reporting as ongoing considerations.
Filing Explained
Adjusted EBITDA is not liquidity: it excludes cash needed for interest and principal payments, while 2026 EBITDA guidance lacks a GAAP reconciliation.
The
The company calculates Adjusted EBITDA by adding back interest, taxes, depreciation and amortization, stock-based compensation, and specified other items; it says the measure excludes cash requirements for interest or principal payments.
For fiscal 2026 guidance, the company provides no GAAP reconciliation for Adjusted EBITDA or margin because reconciling items such as stock-based compensation are uncertain and variable, and says material changes could significantly affect future GAAP results.
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, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $219,505,000
Q2 2026 Adjusted EBITDA: $132,312,000
Net income six months 2026: $45,100,000
+5 more
8 metrics
Q2 2026 Revenue
$219,505,000
Quarter ended June 30, 2026; 35% year-over-year growth and 7% sequential growth
Q2 2026 Adjusted EBITDA
$132,312,000
Quarter ended June 30, 2026; 60% Adjusted EBITDA Margin
Net income six months 2026
$45,100,000
Net income for the six months ended June 30, 2026
Operating cash flow H1 2026
$151,477,000
Net cash provided by operating activities for six months ended June 30, 2026
Free Cash Flow TTM
$184,453,000
Free Cash Flow for the twelve months ended June 30, 2026
Cash and cash equivalents
$305,398,000
Balance as of June 30, 2026 on the condensed consolidated balance sheet
Long-term debt, net
$1,392,149,000
Long-term debt, net, as of June 30, 2026
FY 2026 revenue guidance
$870,000,000–$880,000,000
Fiscal year 2026 revenue guidance range provided by management
Key Terms
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Core Advertising Revenue, +2 more
6 terms
Adjusted EBITDA financial
"We define Adjusted EBITDA as net income adjusted for interest expense, net, income tax expense..."
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
"We also disclose Adjusted EBITDA Margin, which is calculated as Adjusted EBITDA divided by revenue."
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
"Core Advertising Revenue represents revenue generated from our current advertising platforms..."
Contingent consideration revaluation financial
"Contingent consideration revaluation | 17,529 | | (3,300) | | 12,629 | | 5,100"
Earnings Snapshot
Revenue Q2 2026: $219.5 million · Guidance included
quarter and six months ended June 30, 2026
Revenue Q2 2026
$219.5 million
35% year-over-year; 7% quarter-over-quarter
Net income (loss) Q2 2026
($4.2 million)
Net loss margin (2)% vs (15)% a year earlier
Adjusted EBITDA Q2 2026
$132.3 million
Up 55% year-over-year; margin up 8 pts to 60%
Operating cash flow H1 2026
$151.5 million
Approximately double the $77.9 million in H1 2025
Free Cash Flow TTM
$184.5 million
Up from $76.4 million a year earlier
Guidance
Fiscal 2026 guidance: revenue $870–$880 million; Adjusted EBITDA $510–$518 million; Adjusted EBITDA Margin 59%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Liftoff Mobile (LFTO) perform financially in Q2 2026?
Liftoff generated $219.5 million in Q2 2026 revenue, up 35% year over year, and reported a small net loss of $4.2 million. Adjusted EBITDA reached $132.3 million with a 60% margin, reflecting strong non‑GAAP profitability.
What guidance did Liftoff Mobile (LFTO) give for fiscal year 2026?
For fiscal 2026, Liftoff projects revenue of $870–$880 million and Adjusted EBITDA of $510–$518 million, implying a 59% Adjusted EBITDA margin. This outlook suggests continued high profitability based on the company’s non‑GAAP metrics.
How strong is Liftoff Mobile’s (LFTO) cash flow and liquidity?
In the first half of 2026, Liftoff generated $151.5 million of operating cash flow and ended June 30 with $305.4 million in cash and equivalents. Trailing twelve‑month Free Cash Flow was $184.5 million, indicating robust liquidity.
What is Liftoff Mobile’s (LFTO) current debt position?
As of June 30, 2026, Liftoff reported $1.39 billion of long‑term debt, net, plus a $18.6 million current portion. The company repaid $418.4 million of principal in the first half, helping reduce total liabilities from prior levels.
How profitable is Liftoff Mobile’s (LFTO) business on a non-GAAP basis?
Liftoff’s Q2 2026 Adjusted EBITDA was $132.3 million with a 60% margin; for the first half it was $252.4 million with a 59% margin. These non‑GAAP figures exclude interest, taxes, depreciation, stock‑based compensation, and other adjustments.
What impact did the IPO have on Liftoff Mobile’s (LFTO) balance sheet?
The IPO provided $472.4 million in net proceeds, boosting cash and enabling repayment of $418.4 million of debt principal. It also coincided with the elimination of $414.6 million of redeemable convertible preferred stock, simplifying capitalization.
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): August 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 August 12, 2026, Liftoff Mobile, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 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 August 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: August 12, 2026 | /s/ Tarek Kutrieh | |||||||
| President and Chief Financial Officer | ||||||||
| (Principal Financial Officer) | ||||||||
Exhibit 99.1
Liftoff Mobile Announces Second Quarter 2026 Financial Results
REDWOOD CITY, CA – August 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 June 30, 2026.
Second Quarter 2026 Financial Highlights:
| (In millions, except percentages) | Q2 FY26 | Q1 FY26 | Q2 FY25 | Q/Q Change | Y/Y Change | ||||||||||||||||||||||||
| Revenue | $ | 220 | $ | 206 | $ | 162 | 7 | % | 35 | % | |||||||||||||||||||
| Net income (loss) | $ | (4) | $ | 49 | $ | (24) | NM | (82) | % | ||||||||||||||||||||
Adjusted EBITDA1 | $ | 132 | $ | 120 | $ | 85 | 10 | % | 55 | % | |||||||||||||||||||
| Net income (loss) Margin | (2) | % | 24 | % | (15) | % | NM | 13 | pts | ||||||||||||||||||||
Adjusted EBITDA Margin1 | 60 | % | 58 | % | 53 | % | 2 | pts | 8 | 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.
“Q2 marked our eleventh consecutive quarter of revenue growth and reinforced a pattern we have seen over time: better advertising performance gives customers reason to increase their spend with us. Cortex’s continued self-learning and discrete model improvements both contributed to that performance this quarter,” said Jeremy Bondy, Liftoff’s Chief Executive Officer. “Our integrated advertising platform, powered by Cortex machine learning, is designed to serve all verticals in the app economy, and we believe we're still in the early innings of our growth story in a large, expanding, and structurally under-monetized market.”
“Our strong financial results reflect the durability of our financial model,” added Tarek Kutrieh, Liftoff’s President and Chief Financial Officer. “Adjusted EBITDA margin expanded meaningfully, as our revenue scaled faster than our cost base. That operating leverage, combined with our capital light architecture, converted growth into significant free cash flow. We see a clear opportunity for continued sustainable, profitable growth.”
Business Highlights:
•Core Advertising Revenue2 was $219 million in the second quarter, an increase of 36% year-over-year and 7% quarter-over-quarter.
•Core Advertising Daily Average Revenue (DAR)2 increased by 6% quarter-over-quarter.
•Net Loss of $(4) million in the second quarter is inclusive of $45 million of non-cash expenses related to our IPO and other capital markets activities.
•Trailing 12-month Net Cash from Operating Activities was $237 million, an increase of 90% from the corresponding period of the prior year.
•Trailing 12-month Free Cash Flow1 was $184 million, an increase of 142% from the corresponding period of the prior year.
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Third Quarter 2026 Financial Guidance Summary3
| (In millions, except percentages) | Low | High | |||||||||
| Revenue | $ | 217 | $ | 222 | |||||||
| Adjusted EBITDA | $ | 124 | $ | 128 | |||||||
| Adjusted EBITDA Margin | 57 | % | 58 | % | |||||||
Fiscal Year 2026 Financial Guidance Summary3
| (In millions, except percentages) | Low | High | |||||||||
| Revenue | $ | 870 | $ | 880 | |||||||
| Adjusted EBITDA | $ | 510 | $ | 518 | |||||||
| Adjusted EBITDA Margin | 59 | % | 59 | % | |||||||
_________
1 For a discussion on how we define, use, and calculate these 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 and Core Advertising DAR.
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 Laura Wilkinson 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) projections of revenues, expenses, income or loss, earnings or loss per share, cash flow, margins, profitability, capital expenditures, liquidity, capital resources or other financial or operating items; (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; (4) our expectations regarding macroeconomic conditions, market trends, competition, regulatory developments, taxes, public company costs, indebtedness, interest rates and other risks affecting our business; (5) our expectations regarding acquisitions, investments, dispositions, financings or other strategic transactions we may pursue; and (6) 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 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, customer churn or consolidation, 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. This list is not exhaustive. 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.
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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 they provide further understanding with respect to the results of our operations.
We define Adjusted EBITDA as net income adjusted for interest expense, net, income tax expense, depreciation and amortization expense, stock-based compensation, other expenses, 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 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 definite-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, 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 exclude costs related to 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
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•Adjusted EBITDA and Adjusted EBITDA Margin exclude other expenses, 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. 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.
Core Advertising Daily Average Revenue
Core Advertising Daily Average Revenue (“DAR”) is calculated by dividing Core Advertising Revenue by the number of calendar days during the reporting period. We believe DAR provides investors with useful information about the performance of our core advertising business and a normalized measure of revenue that facilitates comparisons across reporting periods with differing numbers of calendar days.
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Liftoff Mobile, Inc.
Condensed Consolidated Balance Sheets
As of June 30, 2026 and December 31, 2025
(In thousands, except share and per share data)
(Unaudited)
| As of | |||||||||||
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 305,398 | $ | 133,306 | |||||||
Accounts receivable, net | 366,112 | 355,277 | |||||||||
Income tax receivable | 995 | 1,651 | |||||||||
Prepaid expenses and other current assets | 20,498 | 26,891 | |||||||||
Total current assets | 693,003 | 517,125 | |||||||||
Restricted cash | 789 | 789 | |||||||||
Property, equipment, and software, net | 128,984 | 115,968 | |||||||||
Intangible assets, net | 153,313 | 178,677 | |||||||||
Goodwill | 1,056,302 | 1,057,180 | |||||||||
Other assets | 33,571 | 31,590 | |||||||||
Total assets | $ | 2,065,962 | $ | 1,901,329 | |||||||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 355,096 | $ | 356,519 | |||||||
Accrued liabilities | 99,294 | 77,216 | |||||||||
Current portion of long-term debt | 18,550 | 18,550 | |||||||||
Other current liabilities | 30,274 | 29,169 | |||||||||
Total current liabilities | 503,214 | 481,454 | |||||||||
Deferred tax liability | 40,813 | 29,009 | |||||||||
Long-term debt, net | 1,392,149 | 1,801,150 | |||||||||
Other liabilities | 135,320 | 126,597 | |||||||||
Total liabilities | 2,071,496 | 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 June 30, 2026 and December 31, 2025, respectively; Nil and 425,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) Liquidation preference of nil and $425,000 as of June 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 June 30, 2026 and December 31, 2025, respectively, no shares issued and outstanding as of June 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 June 30, 2026 and December 31, 2025, respectively; 169,330,527 and 123,002,518 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) | 17 | 12 | |||||||||
Additional paid-in capital | 906,720 | 5,867 | |||||||||
Accumulated other comprehensive loss | (1,400) | (1,396) | |||||||||
Accumulated deficit | (910,871) | (955,971) | |||||||||
Total stockholders’ equity (deficit) | (5,534) | (951,488) | |||||||||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | $ | 2,065,962 | $ | 1,901,329 | |||||||
6
Liftoff Mobile, Inc.
Condensed Consolidated Statements of Operations
For the three and six months ended June 30, 2026 and 2025
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenue | $ | 219,505 | $ | 162,084 | $ | 425,147 | $ | 312,053 | |||||||||||||||
| Costs and operating expenses: | |||||||||||||||||||||||
| Cost of revenue, excluding depreciation and amortization | 29,033 | 25,455 | 57,018 | 48,963 | |||||||||||||||||||
| General and administrative | 34,991 | 58,391 | 59,834 | 79,113 | |||||||||||||||||||
| Research and development | 34,513 | 36,925 | 61,887 | 57,849 | |||||||||||||||||||
| Sales and marketing | 20,594 | 16,149 | 38,329 | 30,411 | |||||||||||||||||||
| Depreciation and amortization | 22,963 | 25,120 | 44,731 | 50,672 | |||||||||||||||||||
Total costs and operating expenses | 142,094 | 162,040 | 261,799 | 267,008 | |||||||||||||||||||
Income from operations | 77,411 | 44 | 163,348 | 45,045 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
| Interest expense, net | (33,339) | (30,038) | (68,314) | (59,642) | |||||||||||||||||||
| Loss on debt extinguishment | (7,366) | — | (7,366) | — | |||||||||||||||||||
| Post-conversion earnout share liability revaluation | 139 | — | 2,675 | — | |||||||||||||||||||
| Contingent consideration revaluation | (17,529) | 3,300 | (12,629) | (5,100) | |||||||||||||||||||
| Other (expense) income, net | (86) | (1,137) | (198) | (992) | |||||||||||||||||||
Income (loss) before income taxes | 19,230 | (27,831) | 77,516 | (20,689) | |||||||||||||||||||
Income tax (expense) benefit | (23,461) | 4,048 | (32,416) | 774 | |||||||||||||||||||
Net income (loss) | $ | (4,231) | $ | (23,783) | $ | 45,100 | $ | (19,915) | |||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | (0.03) | $ | (0.16) | $ | 0.30 | $ | (0.14) | |||||||||||||||
Diluted | $ | (0.03) | $ | (0.16) | $ | 0.27 | $ | (0.14) | |||||||||||||||
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||||||||||||
Basic | 137,076,788 | 145,269,540 | 130,121,241 | 145,309,595 | |||||||||||||||||||
Diluted | 137,076,788 | 145,269,540 | 143,533,326 | 145,309,595 | |||||||||||||||||||
7
Liftoff Mobile, Inc.
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2026 and 2025
(In thousands)
(Unaudited)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 45,100 | $ | (19,915) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 44,731 | 50,672 | |||||||||
Amortization of debt issuance costs | 2,198 | 3,219 | |||||||||
Provision for credit losses | 1,995 | 1,542 | |||||||||
Stock-based compensation expense | 26,634 | 4,022 | |||||||||
Non-cash lease expense | 2,489 | 2,459 | |||||||||
Deferred income tax | 13,022 | (6,007) | |||||||||
| Loss on debt extinguishment | 7,366 | — | |||||||||
Contingent consideration revaluation | 12,629 | 5,100 | |||||||||
| Post-conversion earnout share liability revaluation | (2,675) | — | |||||||||
Change in operating assets and liabilities: | |||||||||||
| Accounts receivable | (12,780) | (63,806) | |||||||||
Income tax receivable | 618 | 132 | |||||||||
Prepaid expenses and other current assets | 3,522 | (11,205) | |||||||||
Other assets | (2,889) | (1,501) | |||||||||
Accounts payable | (8,006) | 79,681 | |||||||||
Accrued liabilities | 20,488 | 28,401 | |||||||||
Other current liabilities | 1,430 | 1,173 | |||||||||
Other long-term liabilities | (4,395) | 3,930 | |||||||||
Net cash provided by operating activities | 151,477 | 77,897 | |||||||||
Cash flows from investing activities: | |||||||||||
| Purchase and capitalization of property, equipment and software | (27,247) | (24,901) | |||||||||
Net cash used in investing activities | (27,247) | (24,901) | |||||||||
Cash flows from financing activities: | |||||||||||
| Proceeds from the exercise of stock options | 2,255 | 1,237 | |||||||||
| Proceeds from issuance of preferred stock | — | 409,545 | |||||||||
| Proceeds from post-conversion earnout share liability | — | 5,393 | |||||||||
| Proceeds from initial public offering, net of underwriting discounts and commissions | 472,397 | — | |||||||||
Repurchase of common stock | — | (383,389) | |||||||||
Payment of debt principal | (418,438) | (7,563) | |||||||||
Payment of deferred offering costs | (8,359) | — | |||||||||
Net cash provided by financing activities | 47,855 | 25,223 | |||||||||
Effect of exchange rate on cash, cash equivalents, and restricted cash | 7 | 663 | |||||||||
Net increase in cash, cash equivalents, and restricted cash | 172,092 | 78,882 | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 134,095 | 99,088 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 306,187 | $ | 177,970 | |||||||
8
Liftoff Mobile, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
For the three and six months ended June 30, 2026 and 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 June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (in thousands, except percentages) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net income (loss) | $ | (4,231) | $ | (23,783) | $ | 45,100 | $ | (19,915) | ||||||||||||||||||
| Interest expense, net | 33,339 | 30,038 | 68,314 | 59,642 | ||||||||||||||||||||||
| Income tax (expense) benefit | 23,461 | (4,048) | 32,416 | (774) | ||||||||||||||||||||||
| Depreciation and amortization | 22,963 | 25,120 | 44,731 | 50,672 | ||||||||||||||||||||||
Stock-based compensation expense (a) | 28,223 | 21,854 | 34,834 | 25,685 | ||||||||||||||||||||||
| Contingent consideration revaluation | 17,529 | (3,300) | 12,629 | 5,100 | ||||||||||||||||||||||
| Other (expense) income, net | 86 | 1,137 | 198 | 992 | ||||||||||||||||||||||
Reorganization severance costs (b) | — | 548 | — | 592 | ||||||||||||||||||||||
Transaction costs (c) | (468) | 35,860 | (468) | 36,911 | ||||||||||||||||||||||
Other non-recurring expenses (d) | 4,183 | 1,746 | 9,952 | 4,134 | ||||||||||||||||||||||
Loss on debt extinguishment (e) | 7,366 | — | 7,366 | — | ||||||||||||||||||||||
| Post-conversion earnout share liability revaluation | (139) | — | (2,675) | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 132,312 | $ | 85,172 | $ | 252,397 | $ | 163,039 | ||||||||||||||||||
| Net income (loss) Margin | (2) | % | (15) | % | 11 | % | (6) | % | ||||||||||||||||||
| Adjusted EBITDA Margin | 60 | % | 53 | % | 59 | % | 52 | % | ||||||||||||||||||
_________
(a)Stock-based compensation includes $3.9 million and $2.9 million related to the vesting and payment of the 2021, 2024, and 2025 Distributions to employee equity holders for the three months ended June 30, 2026 and 2025, respectively, as well as $8.2 million and $6.1 million for the six months ended June 30, 2026 and 2025, respectively. Distributions of this nature are not expected to reoccur as a public company.
(b)Represents reorganization costs associated with the integration of legacy Liftoff and Vungle operations following the 2021 merger. As a result of the Company’s integration activities, the Company undertook multiple defined reduction-in-force programs to eliminate duplicative roles and streamline the Company’s workforce across all functions. The costs came primarily in the form of severance and professional service costs associated with such operating model redesign, including severance related expenses and professional fees. Reorganization costs relating to these integration activities are expected to be minimal following the 2025 fiscal year.
(c)Represents costs for transaction-related services, such as investment banking, legal, accounting, and diligence, primarily incurred in connection with capital markets activities, including debt refinancing efforts and General Atlantic’s investment.
(d)Represents non-recurring third-party professional fees in preparation of becoming a public company that were not capitalizable.
(e)Consisted of a write-off of $7.4 million of unamortized issuance costs.
9
Liftoff Mobile, Inc.
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow
For the twelve months ended June 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 June 30, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| Net cash provided by operating activities | $ | 236,934 | $ | 124,688 | |||||||
| Less: | |||||||||||
| Purchase and capitalization of property, equipment and software | (52,481) | (48,323) | |||||||||
| Free Cash Flow | $ | 184,453 | $ | 76,365 | |||||||
| Net cash used in investing activities | $ | (52,481) | $ | (48,323) | |||||||
| Net cash used in financing activities | $ | (55,941) | $ | (105,501) | |||||||
10