Digital Turbine (APPS) AI Stock Analysis

• Market Cap: $579.73M
• Dividend Yield: N/A
• Average Volume (3M): 8.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -9.91%
• EPS Growth: 78.56%
• Country: US
• Employees: 754
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 0.10
• Shares Outstanding: 107,957,050
• 10 Day Avg. Volume: 3,798,454
• 30 Day Avg. Volume: 8,517,121
• PEG Ratio: -0.08
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -35.60
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 7.72
• 1Y Price Target: $4.50
• Price Target Upside: -16.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $5.00 ▼(-6.89%Downside)

Digital Turbine's overall stock score reflects significant financial challenges, balanced by positive earnings call sentiment. The company's strategic partnerships and improved EBITDA are promising, yet financial health and valuation remain concerns.

Positive Factors

Financial Performance

Revenue of $119mn slightly exceeded BofA ($117mn) and conservative Guide ($116mn), with EBITDA margin beating handily benefiting from cost savings.

Growth

APPS delivered its first quarter of growth since 2Q23, marking an important inflection after 10 consecutive quarters of Y/Y declines.

Partnerships

Adoption of alternative app distribution appears to be growing, with Epic, Xbox, and Pinterest all current partners of APPS.

Negative Factors

Competition

The burden remains on APPS to distinguish itself in a highly competitive (for business & capital) adtech space.

Valuation

APPS remains uncompelling relative to many adtech peers with more sanguine growth outlook, stronger competitive position, yet trading at similar valuations.

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 makes money through a diverse revenue model primarily centered around its software platform, which facilitates app discovery and advertising. The company earns revenue by partnering with mobile operators and OEMs to preload apps on devices and through its programmatic advertising solutions that allow advertisers to reach targeted audiences. Key revenue streams include fees generated from app distribution agreements, mobile advertising, and user acquisition campaigns. Additionally, Digital Turbine benefits from strategic partnerships with telecom companies and device manufacturers, which expand its reach and enhance its service offerings, contributing significantly to its earnings.

Digital Turbine Financial Statement Overview

Summary

Digital Turbine is facing financial difficulties with declining revenues, negative profit margins, and increased leverage. The cash flow situation is concerning, with negative free cash flow and reduced operating cash flow.

Income Statement

Digital Turbine has experienced a significant decline in revenue and profitability. The TTM (Trailing-Twelve-Months) data shows a negative EBIT and net income, leading to negative profit margins. Revenue has decreased from previous years, indicating challenges in growth. However, there is a positive gross profit margin, which shows some ability to cover direct costs.

Balance Sheet

The company has a high debt-to-equity ratio, reflecting significant leverage. Stockholders' equity has been decreasing, raising concerns about financial stability. However, the equity ratio remains positive, indicating that a portion of assets is financed by equity. The decrease in total assets and equity suggests that the company is experiencing financial strain.

Cash Flow

Free cash flow has turned negative in the TTM (Trailing-Twelve-Months), indicating cash flow issues. The operating cash flow to net income ratio is positive, but the negative free cash flow to net income ratio highlights challenges in generating cash from operations. Cash flow from operations has decreased substantially from previous periods.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	490.51M	544.48M	665.92M	747.60M	313.58M
Gross Profit	220.68M	247.46M	320.23M	347.11M	132.57M
EBITDA	28.84M	54.57M	46.16M	92.24M	66.32M
Net Income	-92.10M	-420.23M	16.67M	35.55M	54.88M
Balance Sheet
Total Assets	812.85M	865.54M	1.27B	1.46B	260.37M
Cash, Cash Equivalents and Short-Term Investments	40.08M	33.60M	75.06M	126.77M	30.78M
Total Debt	418.19M	383.49M	410.52M	533.28M	14.56M
Total Liabilities	658.90M	651.61M	659.30M	942.29M	115.26M
Stockholders Equity	153.96M	213.93M	605.20M	514.57M	145.11M
Cash Flow
Free Cash Flow	-15.60M	4.40M	10.60M	61.46M	53.59M
Operating Cash Flow	11.88M	28.68M	15.86M	84.74M	62.80M
Investing Cash Flow	-27.48M	-43.85M	-9.76M	-172.00M	-37.81M
Financing Cash Flow	23.28M	-29.30M	-128.29M	185.24M	-15.22M

Digital Turbine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 5.37 is below the 20-day moving average (MA) of 5.50, above the 50-day MA of 5.08, and above the 200-day MA of 3.33, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 21.38 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	70 Outperform	$857.79M	455.48	4.15%	―	30.64%	―
API	66 Neutral	$373.11M	―	-5.62%	―	-3.34%	56.44%
BMBL	58 Neutral	$737.50M	―	-46.57%	―	-2.39%	-2961.26%
DOMO	58 Neutral	$655.43M	―	48.46%	―	-0.81%	9.83%
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	5.39%	9.34%	-42.23%
APPS	52 Neutral	$579.73M	―	-50.07%	―	-9.91%	78.56%
NRDY	48 Neutral	$292.82M	―	-104.69%	―	-1.64%	9.99%

Digital Turbine Corporate Events

Digital Turbine Approves Executive Compensation Plan

On May 23, 2025, Digital Turbine‘s Compensation and Human Capital Management Committee approved performance-based restricted stock units (PSUs) and stock options for its top executives, including the CEO, CFO, CBO, and CTO. The PSUs are tied to achieving specific revenue and EBITDA targets over three years, while the stock options vest over a three-year period, aligning executive compensation with the company’s financial performance goals.

The most recent analyst rating on (APPS) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Digital Turbine stock, see the APPS Stock Forecast page.