Liftoff Mobile — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for Q3 FY26 was $238 million, representing an 8% increase quarter-over-quarter and a 32% increase year-over-year compared to $180 million in Q3 FY25.
• Net income for Q3 FY26 was $87 million, a significant improvement from a net loss of $4 million in Q2 FY26 and a net loss of $6 million in Q3 FY25.
• Adjusted EBITDA for Q3 FY26 was $145 million, up 10% quarter-over-quarter from $132 million and up 45% year-over-year from $100 million.
• Net income margin for Q3 FY26 was 37%, compared to (2)% in Q2 FY26 and (3)% in Q3 FY25.
• Adjusted EBITDA margin for Q3 FY26 was 61%, compared to 60% in Q2 FY26 and 56% in Q3 FY25.
• Core Advertising Revenue was $237 million, up 33% year-over-year and 8% quarter-over-quarter.
• Trailing 12-month Net Cash provided by Operating Activities was $303 million, a 107% increase from the prior year period.
• Trailing 12-month Free Cash Flow was $249 million, a 158% increase from the prior year period.
• Cash and cash equivalents as of September 30, 2026, were $385.7 million, up from $133.3 million as of December 31, 2025.
• Long-term debt, net, decreased to $1,388.4 million as of September 30, 2026, from $1,801.2 million as of December 31, 2025.
• Total stockholders' equity turned positive to $100.0 million as of September 30, 2026, compared to a deficit of $(951.5) million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 FY26 revenue guidance is set between $244 million and $249 million.
• Q4 FY26 Adjusted EBITDA guidance is set between $150 million and $154 million.
• Q4 FY26 Adjusted EBITDA margin guidance is set between 61% and 62%.
• Full Year FY26 revenue guidance is set between $907 million and $912 million.
• Full Year FY26 Adjusted EBITDA guidance is set between $547 million and $551 million.
• Full Year FY26 Adjusted EBITDA margin guidance is set at 60%.
• Management stated that Q3 results came in well above the high end of previously published guidance.

Business Segments and Product Lines:

• The company's platform, Cortex®, unifies marketing, creative, and monetization to deliver performance across the app lifecycle.
• Strength was observed across key app categories, driving increased customer investment in the platform.
• Revenue outside of core advertising platforms is now de minimis.
• Liftoff plans to discontinue separate reporting of Core Advertising Revenue beginning in the first quarter of 2027.

Market and Competitive Landscape:

• Liftoff operates as a global leader in performance marketing and monetization solutions for the app economy.
• The company supports a diverse, global customer base across gaming, consumer, and emerging app categories.
• Management highlighted the breadth of the app economy and the strengthening of their "flywheel" due to better customer performance.

Risks and Challenges:

• Forward-looking statements are subject to risks including the ability to retain and expand customer usage and attract new customers.
• Risks include dependence on mobile operating systems, app stores, and large technology companies.
• Potential impacts from regulatory developments, privacy laws, and data protection requirements are noted.
• Risks related to macroeconomic conditions, inflation, interest rates, and geopolitical tensions, including U.S.-China tensions, are identified.
• The company notes risks associated with its substantial indebtedness, restrictive debt covenants, and interest rate exposure.

Management Commentary and Tone:

• Jeremy Bondy, CEO, stated that results showed the breadth of the app economy and confidence in the platform's ability to capture user attention and monetization.
• Tarek Kutrieh, President and CFO, emphasized the earnings power of the business and the focus on delivering durable, profitable growth and strong cash generation.
• The tone of management commentary was confident, citing the platform as "purpose built" and noting the strengthening of the business flywheel.

Other Key Points:

• The company completed its Initial Public Offering (IPO) on June 4, 2026, raising $472.4 million in proceeds net of underwriting discounts and commissions.
• Redeemable convertible preferred stock was eliminated as of September 30, 2026, with a liquidation preference of nil compared to $425.0 million as of December 31, 2025.
• Stock-based compensation expense for the nine months ended September 30, 2026, was $48.4 million, compared to $36.7 million in the same period of the prior year.
• The company incurred $16.4 million in payment of deferred offering costs during the nine months ended September 30, 2026.
• Management confirmed that distributions related to stock-based compensation awards (2021, 2024, and 2025 Distributions) are not expected to recur as a public company.