Liftoff Mobile: A Fine Business, Fair Price, But I Think Smadex Is The Better Trade

Liftoff posted strong Q2 results—35% Y/Y revenue growth and a 60% adjusted EBITDA margin—but faces investor concerns over decelerating growth and flat Q3 guidance. LFTO trades at ~8x FY26 EV/EBITDA, with a 7.5% owner's yield, but heavy cash uses and generous share grants temper the value proposition. Customer concentration and upcoming share unlocks add risk, while sector-wide regulatory scrutiny on auction transparency introduces a new potential headwind. I prefer Entravision’s Smadex for its lower valuation, CTV focus, and transparency, despite higher customer concentration risk that management expects to reduce.

Liftoff Mobile (LFTO) just reported their first quarter as a public company: 35% Y/Y revenue growth to $220m and a 60% adjusted EBITDA margin, but the stock has traded down through its IPO price anyway. Naturally, the market's problem wasn't This article was written by Kingdom Capital 5.34K Followers Follow Deep value investor focused primarily on microcap stocks. Registered Investment Advisor located in Virginia. Analyst’s Disclosure: I/we have a beneficial long position in the shares of EVC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that do include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.