Liftoff Mobile, Inc. (NASDAQ:LFTO) stock surged more than 27% Friday after the company reported better-than-expected third-quarter earnings and raised its 2026 revenue outlook above Wall Street estimates.

The mobile advertising company also issued an upbeat fourth-quarter outlook, supported by strong advertising demand and improvements to its Cortex AI platform.

Beats Q3 Estimates, Raises 2026 Revenue Outlook

Liftoff Mobile reported third-quarter earnings of 47 cents per share, beating the analyst consensus estimate of 17 cents.

Revenue reached $237.52 million, topping Wall Street's estimate of $221.76 million.

The company raised its full-year revenue outlook to $907 million-$912 million from $870 million-$880 million. Analysts expected $879.27 million.

For the fourth quarter, Liftoff forecast revenue of $244 million-$249 million, exceeding the $232.51 million consensus estimate.

Management cited continued product improvements, Cortex AI enhancements and strong advertising demand.

Analysts Raise Price Forecasts Following Earnings

Several analysts revised their outlooks following the results.

• Barclays analyst Ross Sandler maintained an Overweight rating but lowered his price forecast from $34 to $30.
• RBC Capital analyst Matthew Swanson raised his price forecast from $35 to $38 and maintained an Outperform rating.
• BTIG analyst Clark Lampen increased his price forecast from $27 to $31 and reiterated a Buy rating.
• Freedom Capital Markets analyst Nick McKay upgraded Liftoff Mobile from Hold to Buy and raised his price forecast from $18 to $27.

BTIG Sees More Growth From Cortex AI

Lampen highlighted Liftoff's stronger-than-expected advertising performance.

Daily average advertising revenue grew 7.2% sequentially, compared with management's forecast for roughly flat growth.

He attributed the improvement to two Cortex AI upgrades and the rollout of D28 advertising campaigns.

Lampen expects sequential advertising revenue growth of 2.5%-4.5% in the fourth quarter, supported by sports and holiday advertising.

He also raised his 2027 revenue estimate to $1.089 billion from $1.046 billion. His adjusted EBITDA estimate increased to $674 million from $632 million.

Freedom Capital Upgrades Liftoff to Buy

McKay cited stronger growth and profitability prospects behind his upgrade.

He expects Cortex AI improvements and rising demand for in-app advertising to support continued expansion.

The analyst raised his 2027 revenue forecast to $1.1 billion from $1.015 billion. He also increased his adjusted EBITDA estimate to $683 million from $610 million.

For 2028, McKay now expects revenue of $1.3 billion, up from his previous forecast of $1.18 billion.

LFTO Price Action: Liftoff Mobile shares were up 27.42% at $23.84 at the time of publication on Friday, according to market data.