Digital Turbine (APPS) AI Stock Analysis

• Market Cap: $613.01M
• Dividend Yield: N/A
• Average Volume (3M): 8.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -9.91%
• EPS Growth: 78.56%
• Country: US
• Employees: 754
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.10
• Shares Outstanding: 106,982,285
• 10 Day Avg. Volume: 17,113,401
• 30 Day Avg. Volume: 8,241,333
• PEG Ratio: -1.35
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 115.16
• Enterprise Value/Market Cap: 2.54
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 6.39
• Enterprise Value/Ebitda: 11.33
• 1Y Price Target: $5.75
• Price Target Upside: 0.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $6.00 ▲(4.71%Upside)

The overall score reflects significant financial challenges, with declining revenues and cash flow issues being the most impactful. However, positive technical indicators and growth prospects highlighted in the earnings call provide some optimism. The lack of profitability and dividend yield further weigh down the score.

Positive Factors

Financial Performance

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

Partnerships

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

Revenue Growth

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

Negative Factors

Competitive Position

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

Market Competition

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

Valuation Concerns

At 10x FY26E EBITDA, APPS remains uncompelling relative to many adtech peers with more sanguine growth outlook.

Digital Turbine Business Overview & Revenue Model

Company Description

Digital Turbine, Inc. (APPS) is a leading mobile growth platform company based in the United States. Operating primarily in the technology sector, the company provides end-to-end solutions for mobile operators, original equipment manufacturers (OEMs), and app developers. Its core products and services focus on delivering app distribution, user engagement, and mobile advertising solutions that enhance user experience and drive monetization for its partners.

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's financial statements indicate significant challenges, with a negative EBIT and net income reflecting operational inefficiencies. Although gross profit is positive, the company is unprofitable with negative margins. The balance sheet shows moderate strength with zero debt but declining equity, while cash flow is weak with negative free and operating cash flow, highlighting liquidity issues.

Income Statement

Digital Turbine's income statement reflects significant challenges. The TTM data shows a negative EBIT and net income, indicating operational inefficiencies and unprofitability. The company experienced a substantial decline in revenue from the previous year, highlighting issues with revenue growth. Despite these challenges, gross profit remains positive, suggesting some capacity to cover costs if efficiency improves.

Balance Sheet

The balance sheet exhibits moderate strength with a positive equity position, indicating some financial stability. With zero total debt in the TTM period, the company has reduced leverage, which lowers financial risk. However, the declining stockholders' equity over recent periods suggests pressures on shareholder value and potential liquidity concerns.

Cash Flow

Cash flow analysis reveals significant weakness, with negative free cash flow and operating cash flow in the TTM period. This indicates that the company is not generating enough cash from operations to support its capital expenditures or sustain its operations without external financing. The negative free cash flow growth further underscores cash management challenges.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	483.58M	544.48M	665.92M	747.60M	313.58M	138.72M
Gross Profit	243.74M	247.46M	320.23M	347.11M	132.57M	53.67M
EBITDA	23.62M	54.57M	46.16M	92.24M	66.32M	15.55M
Net Income	-309.78M	-420.23M	16.67M	35.55M	54.88M	13.90M
Balance Sheet
Total Assets	839.71M	865.54M	1.27B	1.46B	260.37M	184.01M
Cash, Cash Equivalents and Short-Term Investments	35.31M	33.60M	75.06M	126.77M	30.78M	21.53M
Total Debt	414.94M	383.49M	410.52M	533.28M	14.56M	19.69M
Total Liabilities	676.15M	651.61M	659.30M	942.29M	115.26M	106.56M
Stockholders Equity	163.56M	213.93M	605.20M	514.57M	145.11M	77.45M
Cash Flow
Free Cash Flow	-38.81M	4.40M	10.60M	61.46M	53.59M	26.53M
Operating Cash Flow	-11.38M	28.68M	15.86M	84.74M	62.80M	31.38M
Investing Cash Flow	-37.38M	-43.85M	-9.76M	-172.00M	-37.81M	-46.72M
Financing Cash Flow	33.22M	-29.30M	-128.29M	185.24M	-15.22M	26.18M

Digital Turbine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.73
• 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 5.73 is above the 20-day moving average (MA) of 5.30, above the 50-day MA of 4.40, and above the 200-day MA of 3.14, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 26.19 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	$831.51M	441.53	4.15%	―	30.64%	―
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
BMBL	58 Neutral	$666.23M	―	-46.57%	―	-2.39%	-2961.26%
API	55 Neutral	$353.47M	―	-5.62%	―	-3.34%	56.44%
APPS	54 Neutral	$613.01M	―	-50.07%	―	-9.91%	78.56%
DOMO	53 Neutral	$559.67M	―	48.46%	―	-0.81%	9.83%
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.