The adtech industry’s IPO drought may finally be ending as Blackstone-backed Liftoff filed to go public in the US this week, marking a potential turning point for the sector that has seen minimal public market activity since 2021. The mobile adtech firm’s filing signals renewed investor appetite for companies with strong AI and machine learning capabilities focused on performance advertising.
Liftoff’s impressive financials demonstrate the power of AI-driven advertising technology. The company grew revenue by 30% year-over-year to $491 million in the nine months ending September 30, while posting $263.3 million in adjusted earnings with a remarkable 54% margin. The company uses machine learning to help advertisers target high-quality mobile users, providing a software development kit that app developers install to sell advertising more effectively.
Industry experts predict that similar AI-powered mobile adtech companies like InMobi and Moloco could follow Liftoff to public markets. SoftBank-backed InMobi has been rumored to pursue an Indian IPO valued between $5-6 billion, while Tiger Global-backed Moloco’s CEO Ahn Ikjin confirmed that going public is “one of the milestones” the company aims to reach.
The AppLovin effect is driving much of this momentum. AppLovin’s market cap has soared past $200 billion, making it the most valuable pure-play adtech company, powered by its AI-driven Axon targeting platform. The company boasts some of tech’s highest profit margins through its expansion from gaming into e-commerce advertising.
Mobile adtech companies have evolved from simple ad placement middlemen into sophisticated AI and machine learning platforms. These systems process billions of data impressions to continuously improve targeting, helping advertisers achieve measurable returns where “$1 of ad spend” can generate “$3, $5, or $10 back in revenue,” according to Craftsman+ CEO Alex Merutka.
The industry has also overcome significant headwinds from Apple’s 2021 privacy changes, which forced apps to request user tracking permission. Companies adapted through investments in first-party data, AI tools, and contextual advertising, reducing reliance on Apple’s device identifier. Recent antitrust rulings forcing Apple and Google to allow alternative payment methods are creating additional tailwinds for mobile ad spending in 2026.
Key Quotes
AppLovin is a bellwether for a buoyant space
Ciaran O’Kane, general partner at adtech-focused venture fund FirstPartyCapital, explained how AppLovin’s $200 billion market cap success is creating optimism for other AI-powered mobile adtech companies seeking to go public.
Because advertising is such a short feedback loop, you get billions of data impressions
Alex Merutka, CEO of creative technology platform Craftsman+, described how the massive data volumes in mobile advertising enable continuous improvement of AI and machine learning targeting systems, creating competitive advantages for these platforms.
going public is one of the milestones that we aim to reach
Ahn Ikjin, CEO of Tiger Global-backed Moloco, confirmed in an interview with Korean media that his AI-powered mobile adtech company is considering an IPO, though he didn’t specify a timeline for the potential public offering.
Our Take
The convergence of AI maturity and market conditions is creating a perfect storm for mobile adtech IPOs. What’s particularly significant is how these companies have proven that AI-driven advertising isn’t just hype—it’s highly profitable. AppLovin’s extraordinary margins demonstrate that machine learning applications with tight feedback loops and massive data sets can achieve exceptional financial performance.
The industry’s recovery from Apple’s privacy changes showcases AI’s adaptability. Rather than collapsing, these companies pivoted to AI-powered solutions like contextual targeting and first-party data optimization. This resilience suggests that AI-native companies may be better positioned to navigate regulatory challenges than traditional tech firms.
The timing is crucial: as generative AI captures headlines, these performance-focused AI applications are quietly generating billions in revenue with proven business models. This could shift investor attention toward practical AI implementations with clear monetization paths, potentially influencing funding patterns across the broader AI ecosystem.
Why This Matters
This development signals a critical inflection point for AI-powered advertising technology and demonstrates how artificial intelligence has become the cornerstone of modern adtech profitability. The potential wave of mobile adtech IPOs validates that machine learning-driven performance advertising has matured into a highly lucrative sector capable of generating tech-industry-leading margins.
The transformation of mobile adtech companies from simple intermediaries into sophisticated AI platforms represents a broader trend across the advertising industry. These companies leverage billions of data points and advanced algorithms to deliver measurable ROI, proving that AI applications with clear, quantifiable business outcomes attract significant investor interest.
For the broader AI industry, this matters because it demonstrates practical, profitable AI implementation at scale. Unlike speculative AI ventures, these companies show concrete revenue growth and profitability through machine learning applications. The success of AppLovin and the anticipated IPOs of similar firms could accelerate investment in AI-driven marketing technologies and spark consolidation through M&A activity, potentially reshaping the digital advertising landscape for years to come.
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Source: https://www.businessinsider.com/liftoff-filing-to-go-public-signals-mobile-adtech-ipo-rebound-2026-1