Aug 12, 2026, 4:05 PM ETCommunication Services

Liftoff Mobile — Second Quarter 2026 Earnings Summary

LFTOLIFTOFF MOBILE INC

Financial Performance

Revenue for Q2 FY26 was $220 million, representing a 35% year-over-year increase and a 7% quarter-over-quarter increase.
Core Advertising Revenue was $219 million, up 36% year-over-year and 7% quarter-over-quarter.
Net loss for Q2 FY26 was $4 million, a decrease in loss compared to a $24 million net loss in Q2 FY25; the Q2 FY26 loss includes $45 million of non-cash expenses related to IPO and capital markets activities.
Adjusted EBITDA for Q2 FY26 was $132 million, an increase of 55% year-over-year and 10% quarter-over-quarter.
Adjusted EBITDA margin expanded to 60% in Q2 FY26, up 8 percentage points year-over-year and 2 percentage points quarter-over-quarter.
Net income margin was (2)% in Q2 FY26 compared to (15)% in Q2 FY25.
Trailing 12-month Net Cash from Operating Activities was $237 million, a 90% increase from the prior year period.
Trailing 12-month Free Cash Flow was $184 million, a 142% increase from the prior year period.
Cash and cash equivalents increased to $305.4 million as of June 30, 2026, from $133.3 million as of December 31, 2025.
Total assets were $2.07 billion as of June 30, 2026, compared to $1.90 billion as of December 31, 2025.
Long-term debt, net, decreased to $1.39 billion as of June 30, 2026, from $1.80 billion as of December 31, 2025.
Redeemable convertible preferred stock liquidation preference was nil as of June 30, 2026, compared to $414.6 million as of December 31, 2025.

Q3 FY26 revenue guidance is $217 million to $222 million.
Q3 FY26 Adjusted EBITDA guidance is $124 million to $128 million.
Q3 FY26 Adjusted EBITDA margin guidance is 57% to 58%.
FY26 full-year revenue guidance is $870 million to $880 million.
FY26 full-year Adjusted EBITDA guidance is $510 million to $518 million.
FY26 full-year Adjusted EBITDA margin guidance is 59%.
Management stated they are in the early innings of growth in a large, expanding, and structurally under-monetized market.

Core Advertising Revenue continues to be the foundation of the business, predominantly powered by Cortex-backed demand solutions.
Core Advertising Daily Average Revenue (DAR) increased by 6% quarter-over-quarter.
Cortex machine learning capabilities, including self-learning and discrete model improvements, contributed to advertising performance this quarter.
The integrated advertising platform serves all verticals in the app economy, including gaming, consumer, and emerging app categories.

Liftoff operates in the global performance marketing and monetization solutions market for the app economy.
Management views the market as large, expanding, and structurally under-monetized.
The company supports a diverse, global customer base.

The press release references a list of risk factors in the IPO Prospectus, including dependence on mobile operating systems, app stores, and third-party platforms.
Risks include advertiser demand fluctuations, customer churn, macroeconomic conditions, and regulatory developments regarding privacy and data protection.
Potential impacts from technology changes, competition, and cybersecurity incidents are noted.
The company notes a material weakness in internal control over financial reporting.
Forward-looking statements regarding Adjusted EBITDA and margin are not reconciled to GAAP due to uncertainty regarding reconciling items like stock-based compensation.

Jeremy Bondy, CEO, noted Q2 marked the eleventh consecutive quarter of revenue growth and attributed performance to better advertising performance and Cortex improvements.
Tarek Kutrieh, CFO, highlighted the durability of the financial model, noting revenue scaled faster than the cost base, resulting in operating leverage and significant free cash flow.
Management expressed confidence in continued sustainable, profitable growth.

The company completed its initial public offering (IPO) in the six months ended June 30, 2026, raising $472.4 million net of underwriting discounts.
The company repurchased $383.4 million of common stock in the prior year period (six months ended June 30, 2025).
Proceeds from the exercise of stock options were $2.3 million in the six months ended June 30, 2026.
Payment of debt principal was $418.4 million in the six months ended June 30, 2026.
The company incurred $45 million in non-cash expenses related to IPO and capital markets activities in Q2 FY26.
Stock-based compensation expense for the six months ended June 30, 2026, was $26.6 million, including $8.2 million related to distributions to employee equity holders which are not expected to recur.
The company incurred $7.4 million in loss on debt extinguishment related to a write-off of unamortized issuance costs in Q2 FY26.
Reorganization costs associated with the integration of legacy Liftoff and Vungle operations are expected to be minimal following the 2025 fiscal year.