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Digital Turbine (APPS)
NASDAQ:APPS
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Digital Turbine (APPS) AI Stock Analysis

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APPS

Digital Turbine

(NASDAQ:APPS)

Rating:49Neutral
Price Target:
$4.50
▲(0.90% Upside)
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
Financial Performance
Strong performance in the first fiscal quarter demonstrates progress in the company's turnaround.
Revenue Growth
Digital Turbine delivered its second quarter of growth in a row since 2Q23, printing +11% Y/Y topline growth, well above expectations.
Technology Investments
Digital Turbine is investing in technology to enhance data utilization and improve advertiser demand, leading to better pricing and fill rates.
Negative Factors
Competitive Challenges
The burden remains on Digital Turbine to distinguish itself in a highly competitive adtech space.
Valuation Concerns
The current valuation of Digital Turbine appears unattractive compared to peers with faster growth and higher profitability.
Valuation Relative to Peers
Digital Turbine remains uncompelling relative to many adtech peers with more sanguine growth outlook and stronger competitive position, yet trading at similar valuations.

Digital Turbine (APPS) vs. SPDR S&P 500 ETF (SPY)

Digital Turbine Business Overview & Revenue Model

Company DescriptionDigital 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 MoneyDigital 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue streams from different business units or product lines, highlighting which areas drive growth and profitability, and where strategic adjustments may be needed.
Chart InsightsDigital Turbine's On-Device Solutions segment is rebounding, with an 18% year-over-year growth, driven by increased revenue per device and improved device volumes. Despite a decline in the Application Growth Platform, it showed a 10% sequential improvement, indicating potential stabilization. Strategic investments in first-party data and AI, along with a 50% increase in brand campaign contributions, are expected to fuel future growth. The company raised its full-year guidance, reflecting improved visibility and momentum, despite challenges like a GAAP net loss and a decrease in cash balance.
Data provided by:Main Street Data

Digital Turbine Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall. Digital Turbine reported significant growth in revenue and EBITDA, improved performance in the On-Device business, and increased brand engagement. Despite some challenges in the AGP segment and a GAAP net loss, the company raised its guidance for fiscal 2026, indicating confidence in future performance.
Q1-2026 Updates
Positive Updates
Revenue and EBITDA Growth
Digital Turbine reported $131 million in revenue, an 11% growth year-over-year, and $25 million in EBITDA, a 73% growth year-over-year. The On Device Solutions business generated $95 million in revenue, up 18% from the previous year.
Improved Revenue Per Device
The company achieved over 30% year-over-year growth in revenue per device in both U.S. and international markets, contributing to the strong performance of the On-Device business.
Expansion of Install Footprint
Device volumes improved, particularly in North America and selected international markets, reversing last year's decline in U.S. devices between March and June.
Brand Engagement Increase
The number of campaigns contributing to brand revenue increased by nearly 50% quarter-over-quarter, indicating stronger and more diversified demand.
Raised Guidance for Fiscal 2026
The company raised full-year revenue and adjusted EBITDA guidance to $525-$535 million and $90-$95 million, respectively, due to stronger than expected first-quarter performance.
Negative Updates
Decline in AGP Revenue
The Application Growth Platform business posted $35 million in revenue, down 5% year-over-year, though it showed a 9% sequential improvement.
GAAP Net Loss
The company reported a GAAP net loss of $14.1 million or $0.13 per share for the fiscal first quarter.
Cash Balance Decrease
Cash balance decreased by approximately $6 million from the March quarter, primarily reflecting the timing of working capital.
Company Guidance
During the Digital Turbine Fiscal 2026 First Quarter Results Call, the company reported significant financial growth, with revenue reaching $131 million, marking an 11% increase year-over-year, and EBITDA climbing to $25 million, a notable 73% growth from the previous year. The On Device Solutions segment generated $95 million in revenue, up 18% from the prior year, while the Application Growth Platform business brought in $35 million, showing a sequential improvement of nearly 10%. The company attributed this performance to increased advertiser demand, enhanced device volumes, and advancements in first-party data and AI capabilities. Additionally, Digital Turbine raised its full-year guidance, projecting revenue between $525 million and $535 million, and adjusted EBITDA between $90 million and $95 million, reflecting an upward adjustment of $10 million and $5 million, respectively. These achievements underscore the company's strategic focus and operational efficiency, positioning them for sustained growth in the competitive mobile marketplace.

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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue503.44M490.51M544.48M665.92M747.60M313.58M
Gross Profit298.22M220.68M247.46M320.23M347.11M132.57M
EBITDA40.83M28.84M54.57M46.16M92.24M66.32M
Net Income-81.05M-92.10M-420.23M16.67M35.55M54.88M
Balance Sheet
Total Assets818.36M812.85M865.54M1.27B1.46B260.37M
Cash, Cash Equivalents and Short-Term Investments34.13M40.08M33.60M75.06M126.77M30.78M
Total Debt409.71M418.19M383.49M410.52M533.28M14.56M
Total Liabilities666.06M658.90M651.61M659.30M942.29M115.26M
Stockholders Equity152.29M153.96M213.93M605.20M514.57M145.11M
Cash Flow
Free Cash Flow-16.44M-15.60M4.40M10.60M61.46M53.59M
Operating Cash Flow12.72M11.88M28.68M15.86M84.74M62.80M
Investing Cash Flow-29.16M-27.48M-43.85M-9.76M-172.00M-37.81M
Financing Cash Flow14.16M23.28M-29.30M-128.29M185.24M-15.22M

Digital Turbine Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.46
Price Trends
50DMA
4.93
Negative
100DMA
4.61
Negative
200DMA
3.63
Positive
Market Momentum
MACD
-0.17
Negative
RSI
50.33
Neutral
STOCH
57.78
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 4.46 is above the 20-day moving average (MA) of 4.20, below the 50-day MA of 4.93, and above the 200-day MA of 3.63, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.52B8.84-11.06%1.87%8.55%-8.14%
59
Neutral
$633.29M299.405.20%30.92%
53
Neutral
$589.85M48.46%>-0.01%9.72%
53
Neutral
$308.59M-3.84%-3.34%48.15%
52
Neutral
$671.91M-75.71%-5.06%-2318.18%
49
Neutral
$459.51M-46.55%-2.45%82.00%
48
Neutral
$247.11M-105.81%-10.85%-15.09%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
APPS
Digital Turbine
4.46
1.58
54.86%
DOMO
Domo
14.62
7.47
104.48%
API
Agora
3.42
1.47
75.38%
NRDY
Nerdy
1.34
0.44
48.89%
DSP
Viant Technology
10.30
0.37
3.73%
BMBL
Bumble
6.70
0.10
1.52%

Digital Turbine Corporate Events

Executive/Board ChangesShareholder Meetings
Digital Turbine Holds 2025 Annual Stockholder Meeting
Neutral
Sep 3, 2025

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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Digital Turbine Secures $430M Loan for Growth Initiatives
Positive
Sep 2, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Digital Turbine Enters Sales Agreement for Stock Offering
Neutral
Aug 5, 2025

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.

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.Date of analysis: Sep 06, 2025