LFTO: Positive on Non-Game Mobile App Opportunity; Initiate OW, $32 PT

Research evidence excerpt

LFTO: Positive on Non-Game Mobile App Opportunity; Initiate OW, $32 PT

Equity Research

Initiation of Coverage — June 29, 2026

Internet

Liftoff Mobile, Inc.

Positive on Non-Game Mobile App Opportunity; Initiate Overweight

OW, $32 PT Price Target: $32.00

Our Call Ticker LFTO

Upside/(Downside) to Target 16.9%

We are constructive on non-game app user acquisition spend in the NT as the World Cup

has driven an inflection in iGaming & prediction market app D/L growth, and in the MT as Price (06/26/2026) $27.39

we expect more funding of AI consumer apps over time. Initiate OW, $32 PT. 52 Week Range $23.08 - 30.10

Market Cap (MM) $4,559

We believe iGaming & prediction market UA spend has inflected positively during the Enterprise Value (MM) $5,733

World Cup, setup into 2Q EPS +VE. Kalshi, Polymarket, and Draftkings downloads have Average Daily Value (MM) $48

accelerated from ~400k / day combined in May to ~1.8m run-rate in early June (multi- Dividend Yield 0.0%

year high) after the IPO from World Cup tailwinds. In the S-1, LFTO noted iGaming has

represented a growth driver in the past. Our 2Q revenue estimate implies q/q core revs / $ (Dec) Q1 Q2 Q3 Q4 FY

day flat vs. 1Q, lower than +9% q/q growth average in the last 3yrs. EBITDA (MM)

2026E 120.1 A 115.7 E 120.4 E 131.3 E 487.5 E

Expect mobile app UA spending to outperform the broader advertising market as 2027E 134.2 E 143.3 E 150.8 E 159.7 E 588.0 E

VC capital deployment shifts back to consumer apps. VC investment mix has shifted Source: Company Data, Wells Fargo Securities estimates, and Factset.

toward enterprise focused firms vs. consumer since 2023. We expect the dynamic to NA = Not Available, NC = No Change, NE = No Estimate

normalize over time as lower inference costs unlock consumer economics, allowing AI