Liftoff Mobile (NASDAQ:LFTO) Releases Earnings Results, Beats Expectations By $0.30 EPS

Liftoff Mobile (NASDAQ:LFTO) released its quarterly earnings results on Thursday. The company reported $0.47 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.30, FiscalAI reports. The business had revenue of $237.52 million for the quarter.

Here are the key takeaways from Liftoff Mobile’s conference call:

• Q3 results materially beat expectations: Revenue rose 32% year over year to $238 million, while adjusted EBITDA increased 45% to $145 million, both above the high end of guidance.
• Full-year outlook implies continued growth, with a slower Q4 pace: Liftoff forecast Q4 revenue of $244 million-$249 million, up 26%-28% year over year, and 2026 revenue of $907 million-$912 million, up approximately 32%-33%.
• Product and model improvements supported performance: Liftoff said Cortex can learn from more data, better value users monetized through in-app ads, and respond more quickly to shifts in behavior; management expects these capabilities to support future growth.
• Profitability and cash generation strengthened: Adjusted EBITDA margin reached 61%, and quarterly free cash flow was $93 million versus $28 million a year earlier. Net leverage declined to 2.1 times from 2.4 times in Q2.
• Management sees room to expand across the app economy: More than half of advertiser revenue came from outside gaming, and executives pointed to AI-driven app creation and changing discovery habits as potential tailwinds, while describing the market as under-monetized.

Liftoff Mobile Stock Up 0.9%

Shares of NASDAQ:LFTO traded up $0.16 during midday trading on Thursday, hitting $18.71. 1,186,414 shares of the stock were exchanged, compared to its average volume of 701,156. Liftoff Mobile has a twelve month low of $13.95 and a twelve month high of $30.10. The firm has a 50 day simple moving average of $16.71.

Institutional Investors Weigh In On Liftoff Mobile

Hedge funds have recently made changes to their positions in the business. Boston Partners raised its position in shares of Liftoff Mobile by 107.4% in the 3rd quarter. Boston Partners now owns 1,480,509 shares of the company’s stock worth $23,345,000 after buying an additional 766,512 shares during the period. Alyeska Investment Group L.P. acquired a new stake in Liftoff Mobile in the second quarter valued at approximately $14,412,000. State Street Corp acquired a new position in shares of Liftoff Mobile in the third quarter worth about $5,691,000. HBK Investments L P purchased a new position in shares of Liftoff Mobile during the 2nd quarter valued at approximately $6,155,000. Finally, Wellington Management Group LLP bought a new position in Liftoff Mobile during the 2nd quarter valued at $4,433,000.

Analyst Ratings Changes

Several analysts have recently issued reports on LFTO shares. Piper Sandler started coverage on Liftoff Mobile in a research note on Tuesday, September 22nd. They issued a “neutral” rating and a $19.00 price objective on the stock. Morgan Stanley lowered their target price on shares of Liftoff Mobile from $30.00 to $20.00 and set an “equal weight” rating for the company in a report on Tuesday, October 13th. Cannonball Research upgraded Liftoff Mobile to a “hold” rating in a research note on Saturday, September 5th. Cantor Fitzgerald cut their target price on shares of Liftoff Mobile from $32.00 to $22.00 and set an “overweight” rating on the stock in a report on Monday, October 19th. Finally, Wall Street Zen upgraded shares of Liftoff Mobile from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $29.25.

About Liftoff Mobile

Liftoff Mobile provides marketing and monetization technology for mobile apps. Its platform helps app developers and publishers attract users, promote engagement and generate revenue through in-app advertising. The company’s services include user acquisition campaigns, advertising creative tools, audience targeting and optimization, and monetization solutions that connect app publishers with advertisers. Liftoff uses data and machine-learning technology to help clients manage and improve campaign performance across mobile platforms.