Digital Turbine (APPS) AI Stock Analysis

• Market Cap: $585.23M
• Dividend Yield: N/A
• Average Volume (3M): 2.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -2.45%
• EPS Growth: 82.00%
• Country: US
• Employees: 754
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 108,375,305
• 10 Day Avg. Volume: 3,374,746
• 30 Day Avg. Volume: 2,984,397
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 24.61
• 1Y Price Target: $5.50
• Price Target Upside: 1.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $4.50 ▼(-16.67% Downside)

Digital Turbine's overall stock score is driven by significant financial challenges, including high leverage and negative cash flows, which weigh heavily on the score. However, positive sentiment from the recent earnings call and strategic refinancing efforts provide some optimism. Technical indicators and valuation metrics remain mixed, reflecting ongoing uncertainties.

Positive Factors

Revenue Growth

The 11% year-over-year revenue growth indicates strong market demand and effective business strategies, positioning the company for sustained expansion.

Strategic Loan Secured

The $430 million loan extends debt maturity and supports strategic initiatives, enhancing financial flexibility and enabling long-term growth.

Raised Guidance

Raising revenue guidance reflects management's confidence in business momentum and operational efficiency, suggesting positive future performance.

Negative Factors

High Leverage

High leverage poses financial risks and limits flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.

Negative Cash Flow

Negative cash flow challenges the company's ability to fund operations and growth, potentially hindering long-term financial stability and strategic investments.

Declining AGP Revenue

Declining AGP revenue indicates challenges in a key business segment, potentially affecting overall growth and market competitiveness if not addressed.

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 money from its advertising services, which include in-app advertising and user acquisition solutions. This is achieved through partnerships with mobile carriers, OEMs (original equipment manufacturers), and app developers, allowing them to integrate Digital Turbine's technology into their offerings. Additionally, Digital Turbine receives revenue from the distribution of apps and content through its platform, charging developers for promoting their applications. The company's strategic partnerships with mobile operators also enhance its revenue potential by providing access to a wide user base, enabling targeted advertising campaigns. Overall, the combination of its advertising services, app distribution, and collaborative partnerships underpins Digital Turbine's financial success.

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. The company needs to address its revenue growth and cash flow generation to improve its financial position.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	503.44M	490.51M	544.48M	665.92M	747.60M	313.58M
Gross Profit	298.22M	220.68M	247.46M	320.23M	347.11M	132.57M
EBITDA	40.83M	28.84M	54.57M	46.16M	92.24M	66.32M
Net Income	-81.05M	-92.10M	-420.23M	16.67M	35.55M	54.88M
Balance Sheet
Total Assets	818.36M	812.85M	865.54M	1.27B	1.46B	260.37M
Cash, Cash Equivalents and Short-Term Investments	34.13M	40.08M	33.60M	75.06M	126.77M	30.78M
Total Debt	409.71M	418.19M	383.49M	410.52M	533.28M	14.56M
Total Liabilities	666.06M	658.90M	651.61M	659.30M	942.29M	115.26M
Stockholders Equity	152.29M	153.96M	213.93M	605.20M	514.57M	145.11M
Cash Flow
Free Cash Flow	-16.44M	-15.60M	4.40M	10.60M	61.46M	53.59M
Operating Cash Flow	12.72M	11.88M	28.68M	15.86M	84.74M	62.80M
Investing Cash Flow	-29.16M	-27.48M	-43.85M	-9.76M	-172.00M	-37.81M
Financing Cash Flow	14.16M	23.28M	-29.30M	-128.29M	185.24M	-15.22M

Digital Turbine Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.40
• 50DMA: Positive
• 100DMA: Positive
• 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 5.4 is above the 20-day moving average (MA) of 4.86, above the 50-day MA of 4.78, and above the 200-day MA of 3.91, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 62.45 is Neutral, neither overbought nor oversold. The STOCH value of 58.52 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	59 Neutral	534.46M	252.68	8.57%	―	30.92%	―
DOMO	53 Neutral	650.63M	-8.08	40.43%	―	>-0.01%	9.72%
API	52 Neutral	350.67M	-15.64	-3.92%	―	-3.34%	48.15%
BMBL	49 Neutral	653.19M	-0.85	-147.04%	―	-5.06%	-2318.18%
APPS	49 Neutral	$585.23M	―	-46.55%	―	-2.45%	82.00%
NRDY	48 Neutral	241.54M	-3.40	―	―	-10.85%	-15.09%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Digital Turbine Corporate Events

Digital Turbine Holds 2025 Annual Stockholder Meeting

Digital Turbine held its 2025 annual meeting of stockholders on August 26, 2025, where several key proposals were voted on. The stockholders elected eight directors to serve until 2026, approved the executive compensation in a non-binding advisory vote, and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026.

Digital Turbine Secures $430M Loan for Growth Initiatives

On August 29, 2025, Digital Turbine entered into a new four-year $430 million term loan credit facility with Blue Torch Finance LLC, which was used to refinance its existing credit facility. This refinancing extends the debt maturity timeline, allowing the company to focus on strategic initiatives and growth. Additionally, the company issued warrants to purchase shares of its common stock as part of the agreement. Following strong fiscal first-quarter results, Digital Turbine raised its fiscal year 2026 revenue guidance to $530-$535 million and adjusted EBITDA to $92-$95 million, indicating positive business momentum.

Digital Turbine Enters Sales Agreement for Stock Offering

On August 5, 2025, Digital Turbine, Inc. entered into a Sales Agreement with RBC Capital Markets, LLC and Craig-Hallum Capital Group LLC to offer and sell up to $150 million of its common stock. The proceeds from this offering are intended for debt repayment and general corporate purposes, potentially impacting the company’s financial flexibility and growth strategy.