Digital Turbine (APPS) AI Stock Analysis

• Market Cap: $562.33M
• Dividend Yield: N/A
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: 6.82%
• EPS Growth: 75.26%
• Country: US
• Employees: 754
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 119,899,930
• 10 Day Avg. Volume: 3,335,894
• 30 Day Avg. Volume: 2,450,121
• 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: 0.84
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.48
• Enterprise Value/Ebitda: 7.17
• 1Y Price Target: $8.75
• Price Target Upside: 86.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $5.00 ▲(6.61% Upside)

The score is held down primarily by weak financial performance (recent losses and elevated leverage) and a bearish-to-weak technical setup (trading below key moving averages). These are partially offset by a strong earnings-call backdrop with raised FY2026 guidance and material adjusted-EBITDA/margin improvement, while valuation remains difficult to assess favorably due to the negative P/E and lack of dividend yield data.

Positive Factors

Margin expansion / EBITDA improvement

Seven consecutive quarters of margin improvement and a 76% YoY EBITDA jump indicate durable operating leverage from the platform. Sustained margin expansion driven by higher gross profit dollars and cost discipline improves cash generation and resilience versus peers, supporting reinvestment and debt paydown over the medium term.

Improving cash generation

Positive trailing‑12‑month operating and free cash flow, with noticeable FCF growth versus the last annual period, enhances financial flexibility. Reliable cash generation aids deleveraging, funds product development and reduces reliance on external capital if consistency holds through different advertising cycles.

Scale and international revenue diversification

Rapid international device growth, rising RPD outside the U.S., and a large app ecosystem create network effects and geographic diversification. Broader distribution and product wins (e.g., Single Tap adoption) reduce concentration risk, supporting durable revenue streams and higher monetization potential over time.

Negative Factors

Elevated leverage and weakened equity

Elevated debt relative to equity and weakened equity versus prior years constrain financial flexibility and raise refinancing risk. High leverage increases interest and covenant sensitivity, limiting ability to invest in growth or absorb downturns despite recent progress on deleveraging.

Profitability volatility / recent multi-year losses

Multi-year earnings volatility and TTM negative results undermine predictability of margins and returns on capital. Inconsistent profitability complicates long‑term planning, capital allocation, and investor confidence, making survival through ad-market cycles and sustaining reinvestment more challenging.

Dependence on capital markets and cyclical exposure

Prior equity raises and termination of the ATM program highlight past reliance on markets to bolster liquidity. Combined with U.S. device supply softness and advertising cyclicality, this dependence plus remaining net debt means earnings and cash flow could swing materially, amplifying funding and execution risk.

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 income from its app distribution services by partnering with device manufacturers and mobile carriers to preload apps onto devices, receiving payment for each app installed. Additionally, Digital Turbine operates a mobile advertising platform, where it earns revenue from advertisers who pay to promote their apps within its network. The company also benefits from performance-based advertising, where it receives a share of the revenue generated from in-app purchases made by users who downloaded apps through its platform. Significant partnerships with major mobile carriers and device manufacturers enhance its distribution capability, further contributing to its earnings.

Digital Turbine Financial Statement Overview

Summary

Revenue has stabilized with slight TTM growth and gross margin holding in the mid-40% range, and TTM operating cash flow/free cash flow are positive with improving free cash flow. However, profitability remains pressured (recent multi-year losses, near break-even operating results) and the balance sheet carries elevated leverage and weakened equity versus prior years, keeping overall financial quality below average.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly higher versus the last annual period (positive growth), and gross margin has remained fairly steady in the mid‑40% range. However, profitability is still pressured: TTM net results are negative and operating profitability is near break-even, following large losses in FY2024 and another loss in FY2025. Earlier years (FY2021–FY2023) show the model can be profitable, but the recent multi-year earnings volatility keeps the income statement quality below average.

Balance Sheet

The balance sheet shows meaningful leverage and weakened equity relative to prior years. Debt relative to equity is elevated in the most recent annual period and remains high in TTM (alongside negative returns on equity), indicating the company is not currently generating acceptable returns on its capital base. While equity is still positive, the combination of recent losses and higher leverage versus FY2021–FY2023 increases financial risk and reduces flexibility.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow is positive and free cash flow is also positive, with strong free cash flow growth versus the most recent annual period. That said, cash flow coverage of earnings is not strong given net losses, and recent annual history includes negative free cash flow (FY2024–FY2025). Overall, cash flow is improving, but consistency and conversion still need to be proven through a full cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	490.51M	544.48M	665.92M	747.60M	747.60M
Gross Profit	220.68M	247.46M	320.23M	347.11M	347.11M
EBITDA	28.84M	46.06M	127.24M	149.69M	149.69M
Net Income	-92.10M	-420.23M	16.67M	35.55M	35.55M
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	75.56M	127.16M	31.12M
Total Debt	418.19M	389.70M	421.08M	537.82M	16.05M
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	-15.60M	4.40M	89.52M	53.59M
Operating Cash Flow	11.88M	11.88M	28.68M	113.38M	62.80M
Investing Cash Flow	-27.48M	-27.48M	-43.85M	-35.06M	-37.81M
Financing Cash Flow	23.28M	23.28M	-29.30M	-128.29M	-15.22M

Digital Turbine Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 4.69 is below the 20-day moving average (MA) of 5.12, below the 50-day MA of 5.04, and below the 200-day MA of 5.10, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 31.04 is Neutral, neither overbought nor oversold. The STOCH value of 10.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$684.90M	385.23	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$476.64M	-9.75	-26.69%	―	13.09%	32.34%
PUBM	59 Neutral	$305.87M	-34.34	-2.85%	―	-0.68%	-146.14%
CRNC	52 Neutral	$485.27M	-284.39	-12.83%	―	-24.05%	96.90%
FRGE	52 Neutral	$619.13M	-9.06	-28.65%	―	16.40%	22.80%
APPS	47 Neutral	$562.33M	-9.12	-27.48%	―	6.82%	75.26%

Digital Turbine Corporate Events

Digital Turbine Board Member Mollie Spilman Resigns

On November 5, 2025, Mollie Spilman, a member of the Board of Directors at Digital Turbine, Inc., announced her resignation effective November 10, 2025. She is leaving to pursue a senior executive role at another company, which may impact the board’s composition and strategic direction.

The most recent analyst rating on (APPS) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Digital Turbine stock, see the APPS Stock Forecast page.