Digital Turbine Inc. (APPS)
NASDAQ:APPS
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Digital Turbine
(NASDAQ:APPS)
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Rating:62Neutral
Price Target:
$10.50
▲(180.00% Upside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by improving financial stability (delevered balance sheet and better operating/FCF generation) and a strong, growth-oriented earnings call with upbeat FY27 guidance and margin expansion. Offsetting factors are continued GAAP losses (also reflected in a negative P/E) and technically stretched momentum (RSI/Stoch elevated), which increases near-term risk despite a strong trend.
Positive Factors
Deleveraging & Balance Sheet Improvement
Material deleveraging and a much lower debt-to-equity ratio reduce financial risk and increase strategic optionality. With a stronger capital base and improved equity, the company has greater flexibility to invest in product, pursue partnerships, or accelerate debt paydown over the next several quarters, supporting sustainable operations if cash generation persists.
Negative Factors
Persistent GAAP Losses
Ongoing GAAP losses mean reported profitability has not yet been achieved despite non-GAAP gains. Persistent accounting losses can limit strategic choices, constrain investor confidence, and complicate capital access or compensation structures unless underlying net income turns positive on a sustained basis.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging & Balance Sheet Improvement
Material deleveraging and a much lower debt-to-equity ratio reduce financial risk and increase strategic optionality. With a stronger capital base and improved equity, the company has greater flexibility to invest in product, pursue partnerships, or accelerate debt paydown over the next several quarters, supporting sustainable operations if cash generation persists.
Read all positive factors
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 (APPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.19B
Dividend YieldN/A
Average Volume (3M)6.56M
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth15.24%
EPS Growth61.14%
CountryUS
Employees754
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.33
Shares Outstanding120,661,980
10 Day Avg. Volume15,163,111
30 Day Avg. Volume6,561,290
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.69
Price to Sales (P/S)0.58
P/FCF Ratio29.07
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit5.06
Enterprise Value/Ebitda43.58
Forecast
1Y Price Target
$8.75Price Target Upside133.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.63
Revenue Forecast (FY)$618.95M
Digital Turbine Business Overview & Revenue Model
Company Description
Digital Turbine, Inc. is a company that delivers a robust mobile growth ecosystem for a diverse set of clients, including advertisers, content creators, mobile network operators, and device manufacturers. Its business operations are structured int...
How the Company Makes Money
Digital Turbine primarily makes money by monetizing mobile app discovery and advertising delivered through partnerships with wireless carriers and device manufacturers (OEMs). A core part of its model is on-device distribution: Digital Turbine’s s...
Digital Turbine Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call communicated strong operational momentum: double-digit full-year revenue growth (15%), pronounced adjusted EBITDA expansion (69% YoY), a standout AGP segment (57% Q4 growth), improving margins, device and RPD gains, and FY27 guidance for continued double-digit growth. Key risks noted include continuing GAAP losses, modest cash and free cash flow relative to debt ($361M net debt, $38M cash), an ongoing CFO transition, and reliance on AI/market trends to sustain momentum. Overall, the positives—robust revenue and EBITDA growth, margin expansion, segment outperformance, and constructive guidance—outweigh the lowlights, though execution and balance sheet management remain areas to monitor.Positive Updates
Fiscal 2026 Revenue Growth
Total net revenue for fiscal 26 was $565.3 million, up 15% year over year, driven by strength in both On-Device Solutions (ODS) and App Growth Platform (AGP).
Negative Updates
GAAP Losses Persist
GAAP net loss for fiscal 26 was $37.3 million (-$0.33 per share). Q4 GAAP net loss was $7.3 million (-$0.06 per share), indicating GAAP profitability has not yet been achieved despite non-GAAP gains.
Read all updates
Q4-2026 Updates
Positive
Negative
Fiscal 2026 Revenue Growth
Total net revenue for fiscal 26 was $565.3 million, up 15% year over year, driven by strength in both On-Device Solutions (ODS) and App Growth Platform (AGP).
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $630–650 million and adjusted EBITDA of $135–145 million, calling for another year of double‑digit top‑ and bottom‑line growth. They cited fiscal 2026 results of $565.3M revenue (+15% YoY) and $122.5M adjusted EBITDA (+69% YoY), Q4 revenue $142.5M (+20% YoY) with Q4 adjusted EBITDA $31.4M (+53% YoY) and a ~22% adjusted EBITDA margin (up ~500 bps), non‑GAAP gross margin of 50% (vs. 48% prior year), FY non‑GAAP net income $64.9M ($0.56/sh) versus GAAP net loss $37.3M ($0.33/sh), Q4 non‑GAAP net income $19.7M ($0.16/sh), free cash flow $11.8M (improved >$21M), cash $38M and net debt $361M (down from $409M). Key segment and operational metrics supporting the outlook included ODS revenue ~$382M (+~12% FY) with global devices +20% YoY and RPD >20% YoY in U.S. and international; AGP growth +57% YoY in Q4 and >20% YoY for the year; nearly 3 billion devices across >80k apps; HEP impressions +15% YoY, international RPD +40% YoY and HEP rates up ~40% YoY.Digital Turbine Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 565.25M | 490.51M | 544.48M | 665.92M | 747.60M |
| Gross Profit | 274.64M | 220.68M | 247.46M | 320.23M | 347.11M |
| EBITDA | -31.34M | 28.84M | 46.06M | 127.24M | 149.69M |
| Net Income | -37.73M | -92.10M | -420.23M | 16.67M | 35.55M |
Balance Sheet | |||||
| Total Assets | 841.65M | 812.85M | 865.54M | 1.27B | 1.46B |
| Cash, Cash Equivalents and Short-Term Investments | 37.96M | 40.08M | 33.60M | 75.56M | 127.16M |
| Total Debt | 368.86M | 418.19M | 389.70M | 421.08M | 537.82M |
| Total Liabilities | 649.49M | 658.90M | 651.61M | 659.30M | 942.29M |
| Stockholders Equity | 192.16M | 153.96M | 213.93M | 605.20M | 514.57M |
Cash Flow | |||||
| Free Cash Flow | 11.19M | -15.60M | -15.60M | 4.40M | 89.52M |
| Operating Cash Flow | 41.80M | 11.88M | 11.88M | 28.68M | 113.38M |
| Investing Cash Flow | -30.62M | -27.48M | -27.48M | -43.85M | -35.06M |
| Financing Cash Flow | -10.86M | 23.28M | 23.28M | -29.30M | -128.29M |
Digital Turbine Technical Analysis
Positive
3.75
Price Trends
4.68
Positive
4.45
Positive
4.92
Positive
Market Momentum
1.51
Negative
81.44
Negative
84.33
Negative
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 3.75 is below the 20-day moving average (MA) of 6.55, below the 50-day MA of 4.68, and below the 200-day MA of 4.92, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 81.44 is Negative, neither overbought nor oversold. The STOCH value of 84.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $778.54M | 81.89 | 16.65% | ― | 18.15% | 331.16% | |
66 Neutral | $418.61M | -10.82 | -19.29% | ― | 12.27% | 37.41% | |
63 Neutral | $534.56M | -31.02 | -6.98% | ― | -2.33% | -425.96% | |
62 Neutral | $1.19B | -29.48 | -21.96% | ― | 15.24% | 61.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $447.81M | -22.74 | -12.77% | ― | 18.84% | 94.41% |
* Technology Sector Average
APPS
Digital Turbine
9.85
4.66
89.79%
CRNC
Cerence
9.91
0.17
1.75%
SPT
Sprout Social
6.96
-14.33
-67.31%
PUBM
PubMatic
11.51
-0.03
-0.26%
DSP
Viant Technology
11.88
-1.57
-11.67%
Digital Turbine Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Digital Turbine Amends Financing Agreement to Ease Liquidity
Positive
Apr 23, 2026
On April 20, 2026, Digital Turbine, Inc. amended its existing financing agreement with Blue Torch Finance LLC and other lenders, lowering the required minimum liquidity to $15 million for the period from April 1, 2026, through December 31, 2026. T...
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.