Digital Turbine (APPS)
NASDAQ:APPS
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Digital Turbine
(NASDAQ:APPS)
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Rating:52Neutral
Price Target:
$3.50
▼(-6.67% Downside)
Action:ReiteratedDate:04/24/26
APPS scores in the low-to-mid range primarily due to weak financial performance (recent losses and elevated leverage) despite improving cash flow. The earnings call was a notable positive with raised guidance and strong adjusted EBITDA/margin momentum, while technicals are only moderately supportive and valuation offers limited cushion without a dividend.
Positive Factors
Improving cash generation
Trailing‑twelve‑month operating cash flow and free cash flow turned positive, and FCF grew versus the most recent annual period. Durable cash generation supports reinvestment, working capital needs and gradual deleveraging, reducing reliance on external financing over a multi‑quarter horizon.
Negative Factors
Elevated leverage
Net debt remains material relative to equity and cash flow (net debt reported around $355M with leverage recently ~3x). Elevated leverage limits strategic flexibility, raises refinancing and interest‑cost risk, and lengthens the timeline needed to restore a conservatively capitalized balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Trailing‑twelve‑month operating cash flow and free cash flow turned positive, and FCF grew versus the most recent annual period. Durable cash generation supports reinvestment, working capital needs and gradual deleveraging, reducing reliance on external financing over a multi‑quarter horizon.
Read all positive factors
Digital Turbine (APPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$414.85M
Dividend YieldN/A
Average Volume (3M)2.26M
Price to Earnings (P/E)28.4
Beta (1Y)1.68
Revenue Growth12.05%
EPS Growth84.72%
CountryUS
Employees754
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.18
Shares Outstanding119,899,930
10 Day Avg. Volume2,354,463
30 Day Avg. Volume2,264,676
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.83
Price to Sales (P/S)0.58
P/FCF Ratio-18.09
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit2.32
Enterprise Value/Ebitda9.00
Forecast
1Y Price Target
$7.50Price Target Upside100.00% 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., 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 Medi...
How the Company Makes Money
Digital Turbine primarily makes money by monetizing mobile user attention and app distribution through its advertising and on-device placement solutions. A core revenue driver is selling advertising and user acquisition outcomes to advertisers (an...
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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call emphasized accelerating business momentum with double-digit revenue growth, large adjusted EBITDA expansion (76% YoY), margin improvements, strong international and AGP performance, notable product wins (Single Tap adoption by large game publishers), and meaningful deleveraging of the balance sheet. Lowlights were relatively limited: U.S. device softness, a portion of EBITDA improvement aided by ~$3.5M of one-time benefits, modest GAAP net income and free cash flow, and remaining net debt of $355M despite recent improvements. On balance, the positives materially outweigh the negatives.Positive Updates
Revenue Growth
Total revenue of $151.4M in the fiscal third quarter, representing 12% year-over-year growth and exceeding expectations.
Negative Updates
U.S. Device Softness
Management acknowledged ongoing softness in U.S. device supply, with growth driven primarily by international volumes rather than a balanced U.S./international recovery.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $151.4M in the fiscal third quarter, representing 12% year-over-year growth and exceeding expectations.
Read all positive updates
Company Guidance
Management raised fiscal 2026 guidance to revenue of $553–$558 million and adjusted EBITDA of $114–$117 million (the midpoint reflects a ~$10 million lift to revenue and an increase of over $13 million to EBITDA versus the prior outlook), citing stronger-than-expected December quarter results: Q3 revenue $151.4 million (12% YoY), adjusted EBITDA $38.8 million (+76% YoY) with a 26% EBITDA margin, non-GAAP gross margin 49% (vs. 44% prior year), free cash flow $6.4 million, cash of $40 million, net debt of $355 million (leverage down to ~3x from >5x a year ago), and $44.6 million of gross proceeds from 6.8 million shares sold at an average $6.54 (leading management to terminate the ATM program).Digital Turbine Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
32
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 532.40M | 490.51M | 544.48M | 665.92M | 747.60M | 747.60M |
| Gross Profit | 319.76M | 220.68M | 247.46M | 320.23M | 347.11M | 347.11M |
| EBITDA | 82.38M | 28.84M | 46.06M | 127.24M | 149.69M | 149.69M |
| Net Income | -41.93M | -92.10M | -420.23M | 16.67M | 35.55M | 35.55M |
Balance Sheet | ||||||
| Total Assets | 858.17M | 812.85M | 865.54M | 1.27B | 1.46B | 260.37M |
| Cash, Cash Equivalents and Short-Term Investments | 40.42M | 40.08M | 33.60M | 75.56M | 127.16M | 31.12M |
| Total Debt | 367.12M | 418.19M | 389.70M | 421.08M | 537.82M | 16.05M |
| Total Liabilities | 663.57M | 658.90M | 651.61M | 659.30M | 942.29M | 115.26M |
| Stockholders Equity | 194.60M | 153.96M | 213.93M | 605.20M | 514.57M | 145.11M |
Cash Flow | ||||||
| Free Cash Flow | 16.69M | -15.60M | -15.60M | 4.40M | 89.52M | 53.59M |
| Operating Cash Flow | 45.98M | 11.88M | 11.88M | 28.68M | 113.38M | 62.80M |
| Investing Cash Flow | -29.29M | -27.48M | -27.48M | -43.85M | -35.06M | -37.81M |
| Financing Cash Flow | -10.48M | 23.28M | 23.28M | -29.30M | -128.29M | -15.22M |
Digital Turbine Technical Analysis
Positive
3.75
Price Trends
3.63
Positive
4.34
Negative
4.87
Negative
Market Momentum
-0.05
Negative
61.37
Neutral
88.82
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 above the 20-day moving average (MA) of 3.08, above the 50-day MA of 3.63, and below the 200-day MA of 4.87, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 88.82 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $669.01M | 8.21 | 19.72% | ― | 19.00% | 255.32% | |
64 Neutral | $449.01M | -28.83 | -5.64% | ― | -2.86% | -216.06% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $359.90M | -15.56 | -22.88% | ― | 12.72% | 32.06% | |
52 Neutral | $414.85M | 28.37 | -25.84% | ― | 12.05% | 84.72% | |
52 Neutral | $393.46M | -22.93 | 0.22% | ― | 29.46% | ― |
* Technology Sector Average
APPS
Digital Turbine
3.46
0.18
5.49%
CRNC
Cerence
8.74
-0.76
-8.00%
SPT
Sprout Social
5.99
-15.08
-71.57%
PUBM
PubMatic
9.62
-0.34
-3.41%
DSP
Viant Technology
10.56
-3.75
-26.21%
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.