Liftoff Mobile, Inc.

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Investment Snapshot

424B4 All Filings

Symbol

LFTO

Offer Range

$20.00-$22.00

Shares Offered

19.0M

Total Shares Post-IPO

425.0K

Market Cap

$8.9M

Target Price

$00.00

Implied Upside vs Midpoint

$00.00

Use of Proceeds

—

Valuation & Price Target

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Business & Product Moat

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Company Description (Source)

Liftoff is a mission-critical growth monetization engine for the app economy. Our AI-powered platform is designed to serve all verticals in the app ecosystem and is fully integrated to drive differentiated advertising performance for our customers across the app economy. We deliver profitable users for app advertisers and help to maximize advertising revenue for apps that monetize with ads. For each of the years ended December 31, 2024 and 2025, and the three months ended March 31, 2026, 728, 881 and 878 Demand Side Customers, respectively, used our platform to acquire new users, and 126,509, 163,708 and 167,814 apps, respectively, have integrated our software development kit (“SDK”) to monetize their media inventory. Through these SDK integrations, in the first quarter of 2026, our platform connects to over 1.4 billion daily active users worldwide. We are built to grow as our customers grow: our models are continually improving, which enables us to deliver better performance for our customers, expanding our market opportunity and strengthening our role in the app economy. The app ecosystem is massive — SensorTower estimates that during 2024 over five billion global mobile users spent an average of approximately three hours daily on apps. In this expanding market, app developers have two primary needs to grow their businesses. The first is user acquisition, which is acquiring engaged and high intent users with a lot of choices to drive growth; the other is user monetization, as in-app advertising is usually a core revenue driver for many apps. These needs are driving an expanding opportunity, with in-app ad spend projected to grow from $332 billion in 2025 to nearly $617 billion by 2030, according to a November 2025 study we commissioned by a third-party strategy consulting firm, Altman Solon (the “Altman Solon Report”). Within this market, the Altman Solon Report estimates our serviceable addressable market for mobile, global in-app independent ad tech platforms to be approximately $79 billion in 2025, with an estimated growth trajectory of 11% compound annual growth rate (“CAGR”) through 2030, driven by strong growth across the app economy, particularly in verticals outside of gaming. From the beginning, we designed our platform to serve all verticals in the app economy, enabling us to diversify our customer base and expand our market opportunity. We have developed broad vertical expertise spanning social media, finance, entertainment, and gaming, among other verticals, allowing us to address our customers’ unique goals and resulting in differentiated end-market diversification in our industry. For the three months ended March 31, 2026, slightly more than half of our advertiser revenue came from verticals outside gaming. As the mobile app landscape evolves and new and high-growth verticals emerge, we expect to be well-positioned to capture the opportunities that follow. We benefit from the rare combination of a leading DSP and SSP, which are unified to deliver differentiated advertising performance for our customers. Our DSP provides mobile advertiser customers with cutting-edge predictive capabilities designed to drive profitable user acquisition. Our SSP provides broad reach and direct access to users through an established and widely-distributed ad auction supply footprint that integrates directly into apps to drive ad monetization. Our unified platform combines our DSP and SSP so that each side is more effective than either would be alone. Managing demand and supply in a single, unified platform reduces friction between systems and increases data visibility. This leads to increased advertising performance and auction win rates relative to what a typical standalone DSP or SSP can achieve. This results in higher advertising performance for our customers, which enables additional users for advertisers and revenue generation for app publishers. Cortex, our internally developed neural network-powered AI prediction model, is the foundation of our business. During the fourth quarter of 2023 through early 2025, we transformed our business by adopting Cortex (which uses the same type of underlying technology as today’s leading large language models) to replace our legacy linear regression-based prediction models. Our Core Advertising revenue is primarily generated through Cortex, while our Other revenue is generated from legacy linear models and advertising platforms that are no longer live as well as from other non-advertising offerings. Cortex unlocked a cycle of continuous improvement for our business by significantly improving our testing velocity and expanding our data-processing capacity. After rolling out Cortex, we are running 4x more tests, enabling us to iterate and deploy model enhancements at a faster rate, accelerating its self-learning capabilities. In addition, as of the fourth quarter of 2025, Cortex processes roughly 21x more data than our previous models, allowing it to refine predictions with greater precision and adaptability. The enhanced power and speed of Cortex has been instrumental in the evolution of both our DSP and our SSP. Powered by Cortex, our DSP now excels at optimizing bid strategy for advertisers across both our own SSP and all other major sources of ad supply. At the same time, our SSP now distinguishes itself in auction execution and real-time optimization of ad inventory yield for publishers. These capabilities drive a meaningful increase in results for our customers. We believe our technology platform, cross-vertical expertise, and business model create a powerful virtuous flywheel: as our customers grow, so do we. The combination of our unified DSP and SSP platform, proprietary Cortex neural network technology, and differentiated operating model enabling configurable modules, which we call Adapters, deliver differentiated performance for our customers, measured through Return on Ad Spend (“ROAS”) and similar profitability-focused metrics. We have seen that, when our DSP meets or exceeds targets, customers often increase spend. Increased spend attracts more developers to use our SSP to monetize their inventory and users, growing our datasets. Ever-growing datasets improve our Cortex neural network technology, enhancing advertiser performance in a continuous cycle. This flywheel is further amplified by our Adapters: we believe that, by combining our models with Adapters, we boost customer performance, which enables us to capture a broader market and achieve compounding revenue growth. In addition, our non-gaming exposure drives a rich data set to build on — we utilized over $160 billion in in-app transaction data for the twelve months ended March 31, 2026. This flywheel drives synchronous growth with our ability to unlock incremental platform performance through customers: our LTM Core Advertising Net Dollar Retention of 130% for the period ended March 31, 2026 underscores the strength of our business model and durability of our growth. We consider ourselves well-positioned to grow with the app economy, fueling and benefiting from an expanding app market as our solutions drive higher advertiser spend. Our financial model is characterized by diversified and durable revenue, compounding revenue growth powered by our alignment with our customers’ success, and strong platform economics. Core Advertising revenue includes revenue 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 important as it aligns with the rollout of Cortex in 2023 and is more representative of our growth potential versus total revenue in historical periods. In 2023, Core Advertising revenue represented approximately 79% of our total revenue and increased to approximately 99% of our total revenue in 2025. For the three months ended March 31, 2026, Core Advertising revenue represented approximately 100% of our total revenue. We expect Core Advertising revenue as a percentage of our total revenue to remain the primary contributor to our total revenue as customers increasingly opt into our Cortex-backed demand solutions. Since our initial roll-out of Cortex in the fourth quarter of 2023, the first quarter of 2026 represented the tenth quarter of sequential Core Advertising revenue growth, averaging over 8% during that ten-quarter period. For the years ended December 31, 2024 and 2025 and the three months ended March 31, 2026, our net (loss) income was $(48.2) million, $(23.1) million and $49.3 million, respectively. Over the trailing eight quarters ending March 31, 2026, our net income margin has improved from 1% to 24% as our model has become increasingly efficient, and we have delivered significant operating leverage with Adjusted EBITDA Margins expanding from 47% to 58%. For the three months ended March 31, 2026, we generated year-over-year Core Advertising revenue growth of 37%, net income margin of 24% and Adjusted EBITDA Margin of 58%. We enhance our financial profile with a capital-light architecture that is expected to drive cash flow generation. For the three months ended March 31, 2026, capitalized internal-use software costs (excluding capitalized stock-based compensation expense) were 6% of total revenue. --- Liftoff Mobile, Inc. was incorporated in Delaware on November 6, 2020. Our principal executive offices are located at 900 Middlefield Road, Redwood City, California 94063 and our telephone number is (650) 319-7151. We maintain a website at www.liftoff.ai.

Competitor Set

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