On the Liftoff Trajectory; Initiate at Overweight and $33 PT

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On the Liftoff Trajectory; Initiate at Overweight and $33 PT

June 29, 2026

#3 – LFTO Has A Compelling Financial Profile (Strong Growth, Attractive Margins)

Platform scale matters significantly to competitive dynamics in advertising technology, however, few

companies in the space currently have more than $1B in revenue. LFTO is quickly approaching this milestone

and growing faster than most peers (core ads revenue +25% y/y to $851m in FY26E), with a well-diversified

advertiser base across verticals including social, eCommerce, finance, entertainment, etc. (50%+ revenue

outside of gaming).

As noted above, continued algorithmic enhancements to Cortex are likely to be the key driver of revenue

growth over the next several years. LFTO’s diversified advertiser / publisher base should help drive these

model breakthroughs from increased signal across verticals.

Exhibit 8: Core Ad Revenues Among Advertising Exhibit 9: Core Ad Revenues Among Advertising

Technology Players ($m, FY26E/FY27E) Technology Players (Y/Y, FY26E/FY27E)

Note: Covered companies represent CFe forecasts (LFTO, TTD Note: Covered companies represent CFe forecasts (LFTO, TTD);

[N]); Rest represent Street estimates as of 6/26/2026 Rest represent Street estimates as of 6/26/2026

Source: Cantor Fitzgerald Estimates, Visible Alpha Source: Cantor Fitzgerald Estimates, Visible Alpha

Looking across LFTO’s expense base, we can see that the company has compelling unit economics, with room

for further leverage over time. LFTO recognizes revenue on a net basis after publisher payouts, therefore

COGS primarily consists of infrastructure / hosting costs. Meanwhile, the primary drivers of S&M and G&A are

headcount costs, which should see further leverage over time. Within R&D, LFTO is consistently investing