Digital Turbine Inc. (APPS)
NASDAQ:APPS
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Digital Turbine
(NASDAQ:APPS)
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Rating:52Neutral
Price Target:
$3.00
▲(4.53% Upside)
Action:ReiteratedDate:03/19/26
Score is held back primarily by weak financial statement quality (recent losses and elevated leverage) and bearish technicals (price below key moving averages and negative MACD). These are partially offset by an upbeat earnings call with raised FY2026 guidance, strong adjusted-EBITDA/margin momentum, and improving TTM cash flow, while valuation is only moderately supportive given a ~28 P/E and no dividend yield provided.
Positive Factors
Embedded distribution scale
Digital Turbine's embedded on-device integrations and broad app footprint create durable distribution advantages. Large publisher wins and 80k+ integrated apps provide sticky inventory and lower marginal supply costs, supporting sustained user acquisition and monetization over multiple quarters.
Negative Factors
Elevated leverage and prior equity reliance
Despite recent deleveraging, the balance sheet remains heavily leveraged and management previously relied on dilutive equity to improve liquidity. Persistent debt burdens and demonstrated need for capital market access limit strategic flexibility and can pressure returns during revenue softness.
Read all positive and negative factors
Positive Factors
Negative Factors
Embedded distribution scale
Digital Turbine's embedded on-device integrations and broad app footprint create durable distribution advantages. Large publisher wins and 80k+ integrated apps provide sticky inventory and lower marginal supply costs, supporting sustained user acquisition and monetization over multiple quarters.
Read all positive factors
Digital Turbine (APPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$344.11M
Dividend YieldN/A
Average Volume (3M)2.28M
Price to Earnings (P/E)28.4
Beta (1Y)1.65
Revenue Growth6.82%
EPS Growth75.26%
CountryUS
Employees754
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.18
Shares Outstanding119,899,930
10 Day Avg. Volume2,404,240
30 Day Avg. Volume2,283,489
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.83
Price to Sales (P/S)0.58
P/FCF Ratio-18.09
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit2.10
Enterprise Value/Ebitda8.14
Forecast
1Y Price Target
$7.50Price Target Upside161.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.33
Revenue Forecast (FY)$555.93M
Digital Turbine Business Overview & Revenue Model
Company Description
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through three segments: On Device Media, In App Medi...
How the Company Makes Money
Digital Turbine primarily makes money by monetizing mobile user attention and app distribution through its advertising and on-device placement solutions. A core revenue driver is selling advertising and user acquisition outcomes to advertisers (an...
Digital Turbine Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyDigital Turbine Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call emphasized accelerating business momentum with double-digit revenue growth, large adjusted EBITDA expansion (76% YoY), margin improvements, strong international and AGP performance, notable product wins (Single Tap adoption by large game publishers), and meaningful deleveraging of the balance sheet. Lowlights were relatively limited: U.S. device softness, a portion of EBITDA improvement aided by ~$3.5M of one-time benefits, modest GAAP net income and free cash flow, and remaining net debt of $355M despite recent improvements. On balance, the positives materially outweigh the negatives.Positive Updates
Revenue Growth
Total revenue of $151.4M in the fiscal third quarter, representing 12% year-over-year growth and exceeding expectations.
Negative Updates
U.S. Device Softness
Management acknowledged ongoing softness in U.S. device supply, with growth driven primarily by international volumes rather than a balanced U.S./international recovery.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $151.4M in the fiscal third quarter, representing 12% year-over-year growth and exceeding expectations.
Read all positive updates
Company Guidance
Management raised fiscal 2026 guidance to revenue of $553–$558 million and adjusted EBITDA of $114–$117 million (the midpoint reflects a ~$10 million lift to revenue and an increase of over $13 million to EBITDA versus the prior outlook), citing stronger-than-expected December quarter results: Q3 revenue $151.4 million (12% YoY), adjusted EBITDA $38.8 million (+76% YoY) with a 26% EBITDA margin, non-GAAP gross margin 49% (vs. 44% prior year), free cash flow $6.4 million, cash of $40 million, net debt of $355 million (leverage down to ~3x from >5x a year ago), and $44.6 million of gross proceeds from 6.8 million shares sold at an average $6.54 (leading management to terminate the ATM program).Digital Turbine Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
32
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 532.40M | 490.51M | 544.48M | 665.92M | 747.60M | 747.60M |
| Gross Profit | 319.76M | 220.68M | 247.46M | 320.23M | 347.11M | 347.11M |
| EBITDA | 82.38M | 28.84M | 46.06M | 127.24M | 149.69M | 149.69M |
| Net Income | -41.93M | -92.10M | -420.23M | 16.67M | 35.55M | 35.55M |
Balance Sheet | ||||||
| Total Assets | 858.17M | 812.85M | 865.54M | 1.27B | 1.46B | 260.37M |
| Cash, Cash Equivalents and Short-Term Investments | 40.42M | 40.08M | 33.60M | 75.56M | 127.16M | 31.12M |
| Total Debt | 367.12M | 418.19M | 389.70M | 421.08M | 537.82M | 16.05M |
| Total Liabilities | 663.57M | 658.90M | 651.61M | 659.30M | 942.29M | 115.26M |
| Stockholders Equity | 194.60M | 153.96M | 213.93M | 605.20M | 514.57M | 145.11M |
Cash Flow | ||||||
| Free Cash Flow | 16.69M | -15.60M | -15.60M | 4.40M | 89.52M | 53.59M |
| Operating Cash Flow | 45.98M | 11.88M | 11.88M | 28.68M | 113.38M | 62.80M |
| Investing Cash Flow | -29.29M | -27.48M | -27.48M | -43.85M | -35.06M | -37.81M |
| Financing Cash Flow | -10.48M | 23.28M | 23.28M | -29.30M | -128.29M | -15.22M |
Digital Turbine Technical Analysis
Negative
2.87
Price Trends
4.22
Negative
4.68
Negative
5.04
Negative
Market Momentum
-0.37
Positive
22.29
Positive
8.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPS, the sentiment is Negative. The current price of 2.87 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 4.22, and below the 200-day MA of 5.04, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 22.29 is Positive, neither overbought nor oversold. The STOCH value of 8.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPS.
Digital Turbine Risk Analysis
Digital Turbine disclosed 51 risk factors in its most recent earnings report. Digital Turbine reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Digital Turbine Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $688.65M | 8.21 | 19.72% | ― | 22.97% | 49.49% | |
64 Neutral | $384.93M | -28.83 | -5.64% | ― | -0.68% | -146.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $330.41M | -15.25 | -22.88% | ― | 13.09% | 32.34% | |
52 Neutral | $344.11M | 28.37 | -25.84% | ― | 6.82% | 75.26% | |
52 Neutral | $268.31M | -22.93 | 0.22% | ― | -24.05% | 96.90% |
* Technology Sector Average
APPS
Digital Turbine
2.87
0.16
5.71%
CRNC
Cerence
5.96
-1.94
-24.56%
SPT
Sprout Social
5.54
-16.45
-74.81%
PUBM
PubMatic
8.12
-1.02
-11.16%
DSP
Viant Technology
10.87
-1.54
-12.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.