Digital Turbine (APPS) AI Stock Analysis

• Market Cap: $661.57M
• Dividend Yield: N/A
• Average Volume (3M): 2.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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: 111,751,700
• 10 Day Avg. Volume: 1,743,824
• 30 Day Avg. Volume: 2,732,935
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $6.50 ▲(9.80% Upside)

Digital Turbine's overall stock score is driven by strong earnings call performance and positive technical indicators, but is significantly hindered by poor financial performance and valuation metrics. The company's strategic investments and raised guidance provide optimism, yet profitability and cash flow challenges remain critical areas for improvement.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

International Expansion

The robust growth in international revenues suggests successful global market penetration, enhancing future revenue diversification and stability.

Debt Refinancing

Successful debt refinancing improves financial flexibility, reducing short-term financial risks and supporting long-term strategic investments.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow can hinder the company's ability to fund operations and growth, posing a risk to long-term financial health.

GAAP Net Loss

A GAAP net loss indicates ongoing profitability challenges, which may affect investor confidence and limit reinvestment capabilities.

Digital Turbine Business Overview & Revenue Model

Company Description

Digital Turbine, Inc. (APPS) is a leading mobile technology company that specializes in delivering mobile content and advertising solutions. The company operates primarily in the mobile advertising sector, providing services that enable app discovery and monetization for mobile applications. Its core products include a platform for app distribution, advertising services, and data analytics, which help app developers and advertisers optimize user acquisition and engagement on mobile devices.

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 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	490.51M	544.48M	665.92M	747.60M
Gross Profit	236.30M	220.68M	220.68M	247.46M	320.23M	347.11M
EBITDA	50.95M	28.84M	28.84M	46.06M	127.24M	149.69M
Net Income	-70.17M	-92.10M	-92.10M	-420.23M	16.67M	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: Neutral
• Last Price: 5.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPS, the sentiment is Neutral. The current price of 5.92 is below the 20-day moving average (MA) of 6.34, below the 50-day MA of 5.93, and above the 200-day MA of 4.66, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 5.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APPS.

Digital Turbine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSP	64 Neutral	$678.03M	411.36	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APPS	54 Neutral	$661.57M	―	-46.87%	―	6.82%	75.26%
API	53 Neutral	$326.35M	―	-3.84%	―	-3.60%	48.15%
DOMO	51 Neutral	$537.24M	―	―	―	>-0.01%	9.72%
BMBL	50 Neutral	$427.48M	―	-25.34%	―	-7.43%	61.36%
NRDY	48 Neutral	$168.56M	―	-120.79%	―	-9.86%	0.87%

Digital Turbine Corporate Events

Digital Turbine’s Earnings Call: Growth Amidst Challenges

Digital Turbine Inc. recently held its earnings call, revealing a robust financial performance marked by significant revenue and adjusted EBITDA growth. The company successfully navigated debt refinancing and achieved notable international revenue milestones, although it reported a GAAP net loss for the quarter.

Digital Turbine’s Strong Q2 Growth and Outlook

Digital Turbine, Inc. is a company that empowers mobile consumer experiences through its platform, serving telcos, advertisers, and publishers worldwide. In its fiscal 2026 second quarter, Digital Turbine reported a revenue of $140.4 million, marking an 18% increase from the previous year. Despite a GAAP net loss of $21.4 million, the company achieved a non-GAAP adjusted net income of $16.5 million and a significant 78% growth in non-GAAP adjusted EBITDA to $27.2 million. Key highlights include the successful completion of a $430 million debt refinancing and an increase in non-GAAP free cash flow by $22.7 million. Looking ahead, Digital Turbine has raised its fiscal year 2026 revenue expectations to between $540 million and $550 million, with non-GAAP adjusted EBITDA projected between $100 million and $105 million, reflecting confidence in its strategic direction.

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.

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.

The most recent analyst rating on (APPS) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Digital Turbine stock, see the APPS Stock Forecast page.

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.

The most recent analyst rating on (APPS) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Digital Turbine stock, see the APPS Stock Forecast page.

Digital Turbine’s Earnings Call Highlights Growth and Optimism

Digital Turbine’s recent earnings call was characterized by an overall positive sentiment, driven by significant growth in both revenue and EBITDA. The company has made strategic advancements in first-party data and AI, which have contributed to its optimistic outlook. Despite facing challenges such as a decline in the Application Growth Platform and a GAAP net loss, the achievements and future prospects of Digital Turbine have painted a promising picture for stakeholders.