Digital Turbine (APPS) AI Stock Analysis

• Market Cap: $587.66M
• Dividend Yield: N/A
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 6.82%
• EPS Growth: 75.26%
• Country: US
• Employees: 754
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 112,148,895
• 10 Day Avg. Volume: 2,037,682
• 30 Day Avg. Volume: 1,994,562
• PEG Ratio: 0.04
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -18.09
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $8.75
• Price Target Upside: 70.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $5.00 ▼(-2.72% Downside)

Digital Turbine's stock score is primarily impacted by its financial performance challenges, including profitability and cash flow issues. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to negative earnings. However, strong revenue and EBITDA growth, as highlighted in the earnings call, provide some optimism for future performance.

Positive Factors

Revenue Growth

The 18% YoY revenue growth indicates strong market demand and effective business strategies, suggesting potential for sustained expansion.

International Expansion

The substantial growth in international revenues highlights successful global market penetration, enhancing long-term revenue diversification.

Debt Refinancing

Successful debt refinancing improves financial flexibility, allowing the company to invest in growth opportunities and manage liabilities effectively.

Negative Factors

Profitability Challenges

Ongoing net losses indicate challenges in achieving profitability, which could hinder long-term financial health and investor confidence.

Cash Flow Issues

Declining free cash flow growth suggests difficulties in generating cash, potentially impacting the company's ability to fund operations and growth.

Operational Inefficiencies

Operational inefficiencies are affecting profitability and cash flow, necessitating improvements to enhance financial stability and growth prospects.

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 Media – AdColony, and In App Media – Fyber. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising, and sponsored and editorial content media. The company also provides an end-to-end platform for brands, agencies, publishers, and application developers to deliver advertising to consumers on mobile devices; and a platform that allows mobile application developers and digital publishers to monetize their content through display, native, and video advertising. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.

How the Company Makes Money

Digital Turbine generates revenue through several key streams. Primarily, the company earns income from its app distribution services by partnering with device manufacturers and mobile carriers to preload apps onto devices, receiving payment for each app installed. Additionally, Digital Turbine operates a mobile advertising platform, where it earns revenue from advertisers who pay to promote their apps within its network. The company also benefits from performance-based advertising, where it receives a share of the revenue generated from in-app purchases made by users who downloaded apps through its platform. Significant partnerships with major mobile carriers and device manufacturers enhance its distribution capability, further contributing to its earnings.

Digital Turbine Financial Statement Overview

Summary

Digital Turbine faces significant challenges with profitability and cash flow generation, despite a strong gross profit margin and low leverage. The company needs to address its operational inefficiencies and improve its cash flow management to enhance financial stability.

Income Statement

Digital Turbine's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 71.11%, which is strong, but the company is struggling with profitability as evidenced by a negative net profit margin of -14.75%. Revenue growth is modest at 4.3% TTM, but the company has experienced revenue declines in previous years. The EBIT and EBITDA margins are also weak, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio of 0.018 in the TTM period, indicating low leverage, which is positive. However, the return on equity is negative at -49.71%, highlighting profitability issues. The equity ratio stands at 18.09%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows challenges with a significant decline in free cash flow growth at -195.77% TTM. The operating cash flow to net income ratio is 0.18, indicating limited cash generation relative to net income. The free cash flow to net income ratio is 0.35, suggesting some cash flow generation despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	515.64M	490.51M	544.48M	665.92M	747.60M	747.60M
Gross Profit	236.30M	220.68M	247.46M	320.23M	347.11M	347.11M
EBITDA	50.95M	28.84M	46.06M	127.24M	149.69M	149.69M
Net Income	-70.17M	-92.10M	-420.23M	16.67M	35.55M	35.55M
Balance Sheet
Total Assets	818.66M	812.85M	865.54M	1.27B	1.46B	260.37M
Cash, Cash Equivalents and Short-Term Investments	39.28M	40.08M	33.60M	75.56M	127.16M	31.12M
Total Debt	404.89M	418.19M	389.70M	421.08M	537.82M	16.05M
Total Liabilities	670.54M	658.90M	651.61M	659.30M	942.29M	115.26M
Stockholders Equity	148.13M	153.96M	213.93M	605.20M	514.57M	145.11M
Cash Flow
Free Cash Flow	13.62M	-15.60M	-15.60M	4.40M	89.52M	53.59M
Operating Cash Flow	42.25M	11.88M	11.88M	28.68M	113.38M	62.80M
Investing Cash Flow	-28.63M	-27.48M	-27.48M	-43.85M	-35.06M	-37.81M
Financing Cash Flow	-8.51M	23.28M	23.28M	-29.30M	-128.29M	-15.22M

Digital Turbine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPS, the sentiment is Positive. The current price of 5.14 is above the 20-day moving average (MA) of 5.10, above the 50-day MA of 5.14, and above the 200-day MA of 4.91, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APPS.

Digital Turbine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSP	65 Neutral	$724.85M	439.77	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$603.94M	-12.61	-26.69%	―	13.09%	32.34%
PUBM	59 Neutral	$367.60M	-43.30	-2.85%	―	-0.68%	-146.14%
CRNC	55 Neutral	$555.05M	-25.88	-12.83%	―	-24.05%	96.90%
APPS	50 Neutral	$587.66M	-7.19	-46.87%	―	6.82%	75.26%
FRGE	46 Neutral	$617.75M	-9.06	-28.65%	―	16.40%	22.80%

Digital Turbine Corporate Events

Digital Turbine Board Member Mollie Spilman Resigns

On November 5, 2025, Mollie Spilman, a member of the Board of Directors at Digital Turbine, Inc., announced her resignation effective November 10, 2025. She is leaving to pursue a senior executive role at another company, which may impact the board’s composition and strategic direction.

The most recent analyst rating on (APPS) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Digital Turbine stock, see the APPS Stock Forecast page.

Digital Turbine Files Prospectus for Stock Sale

On October 22, 2025, Digital Turbine, Inc. filed a prospectus supplement related to its shelf registration statement to cover the sale of 1,222,418 shares of common stock by certain selling stockholders. This filing includes a legal opinion on the validity of the securities, which may impact the company’s stock market activities and provide assurance to stakeholders regarding the legitimacy of the securities being sold.

The most recent analyst rating on (APPS) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Digital Turbine stock, see the APPS Stock Forecast page.