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Digital Turbine
(NASDAQ:APPS)
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Rating:61Neutral
Price Target:
$10.00
▲(18.34% Upside)
Action:Reiterated
Date:08/05/26
APPS scores as a mid-range opportunity: financial performance is improving (positive OCF/FCF and healthy gross margin) but is held back by still-negative TTM net income and a reduced equity cushion with sizable debt. The latest earnings call meaningfully lifts the outlook via raised FY27 revenue and adjusted EBITDA guidance and improved leverage, while technicals are broadly neutral and valuation is constrained by a negative P/E and no dividend yield.
Positive Factors
Distribution Scale & Partnerships
Large carrier/OEM distribution (billions of devices, tens of thousands of apps) creates durable, high‑visibility on‑device inventory and network effects. These entrenched partnerships give sustained access to user acquisition demand and a structural edge in monetizing mobile installs and ads.
Negative Factors
GAAP Losses & Accounting Uncertainty
Persisting GAAP losses and an unresolved non‑cash adjustment create uncertainty about underlying profitability and retained earnings. This undermines clarity on true earnings power and could affect covenant calculations, investor confidence, and comparability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Distribution Scale & Partnerships
Large carrier/OEM distribution (billions of devices, tens of thousands of apps) creates durable, high‑visibility on‑device inventory and network effects. These entrenched partnerships give sustained access to user acquisition demand and a structural edge in monetizing mobile installs and ads.
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
$1.50B
Dividend YieldN/A
Average Volume (3M)4.29M
Price to Earnings (P/E)―
Beta (1Y)2.28
Revenue Growth19.24%
EPS Growth60.41%
CountryUS
Employees620
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.23
Shares Outstanding121,016,250
10 Day Avg. Volume2,444,812
30 Day Avg. Volume4,288,694
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.75Price Target Upside74.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.74
Revenue Forecast (FY)$642.19M
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:Aug 04, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial story: double-digit revenue growth, large adjusted EBITDA expansion and margin improvement, substantial AGP momentum, improved cash generation, and strengthened leverage with raised fiscal guidance. Identified risks include an outstanding accounting adjustment affecting GAAP results, a still-substantial absolute debt balance, ongoing device supply-chain headwinds, and potential lumpiness of brand budgets. Overall, the company emphasized multiple growth drivers (AI, data, distribution flywheel, Ignite, alternative apps) and appears to have momentum that outweighs the listed risks.Positive Updates
Strong Top-Line Growth
Revenue of $166.0M in the June quarter, up 27% year-over-year, extending fiscal 2026 exit momentum.
Negative Updates
GAAP Loss and Accounting Uncertainty
GAAP net loss of $3.2M (improved from $14.1M year-ago), but management noted a finalizing non-cash adjustment in the Form 10-Q that may be recorded against beginning retained earnings and could impact the GAAP net loss (uncertainty remains).
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Top-Line Growth
Revenue of $166.0M in the June quarter, up 27% year-over-year, extending fiscal 2026 exit momentum.
Read all positive updates
Company Guidance
Management raised fiscal 2027 guidance to revenue of $650–$670 million (up from $630–$650M) and adjusted EBITDA of $145–$155 million (up from $135–$145M), driven by a strong Q1: revenue $166M (+27% YoY), adjusted EBITDA $42.5M (+69% YoY) with a 25.6% EBITDA margin (gross margin 49.4%), On‑Device Solutions $110M (+15% YoY) and App Growth Platform $56.6M (+56% YoY); balance sheet and cash flow also improved with cash $43.2M, total debt ~$352.9M, net leverage ~2.5x (down from >5x last June quarter), cash from operations $17.9M, non‑GAAP free cash flow $11.3M, non‑GAAP net income $24.1M ($0.19/sh on 125.6M diluted shares), and run‑rate revenue per employee >$1M.Digital Turbine Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 600.31M | 565.25M | 490.51M | 544.48M | 665.92M | 747.60M |
| Gross Profit | 294.63M | 274.64M | 220.68M | 247.46M | 320.23M | 347.11M |
| EBITDA | 87.82M | 40.11M | 29.83M | 46.06M | 103.09M | 101.42M |
| Net Income | -26.78M | -37.73M | -92.10M | -420.23M | 16.67M | 35.55M |
Balance Sheet | ||||||
| Total Assets | 843.49M | 841.65M | 812.85M | 865.54M | 1.27B | 1.46B |
| Cash, Cash Equivalents and Short-Term Investments | 43.21M | 37.96M | 40.08M | 33.60M | 75.56M | 127.16M |
| Total Debt | 352.86M | 368.86M | 418.19M | 389.70M | 421.08M | 537.82M |
| Total Liabilities | 652.90M | 649.49M | 658.90M | 651.61M | 659.30M | 942.29M |
| Stockholders Equity | 190.59M | 192.16M | 153.96M | 213.93M | 605.20M | 514.57M |
Cash Flow | ||||||
| Free Cash Flow | 21.19M | 11.19M | -15.60M | -15.60M | 4.40M | 89.52M |
| Operating Cash Flow | 50.88M | 41.80M | 11.88M | 11.88M | 28.68M | 113.38M |
| Investing Cash Flow | -24.98M | -30.62M | -27.48M | -27.48M | -43.85M | -35.06M |
| Financing Cash Flow | -12.10M | -10.86M | 23.28M | 23.28M | -29.30M | -128.29M |
Digital Turbine Technical Analysis
Positive
8.45
Price Trends
10.23
Positive
7.14
Positive
6.00
Positive
Market Momentum
1.04
Negative
61.01
Neutral
64.01
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 8.45 is below the 20-day moving average (MA) of 10.25, below the 50-day MA of 10.23, and above the 200-day MA of 6.00, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 64.01 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 52 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 | $782.77M | -57.60 | -5.41% | ― | -1.04% | -710.67% | |
71 Outperform | $830.39M | 97.52 | 11.42% | ― | 21.99% | 271.66% | |
70 Outperform | $579.04M | -19.94 | -14.05% | ― | 11.85% | 47.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.50B | -55.87 | -14.77% | ― | 19.24% | 60.41% | |
58 Neutral | $390.79M | -23.73 | -9.84% | ― | 25.84% | 42.54% |
* Technology Sector Average
APPS
Digital Turbine
12.62
8.32
193.49%
CRNC
Cerence
8.61
-3.22
-27.22%
SPT
Sprout Social
9.97
-4.14
-29.34%
PUBM
PubMatic
17.28
8.91
106.45%
DSP
Viant Technology
12.98
3.48
36.63%
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.