Digital Turbine (NASDAQ:APPS) Announces Earnings Results, Beats Expectations By $0.07 EPS

Digital Turbine (NASDAQ:APPS) posted its earnings results on Tuesday. The software maker reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.09 by $0.07, FiscalAI reports. The business had revenue of $142.55 million for the quarter, compared to analyst estimates of $133.23 million. Digital Turbine had a negative net margin of 8.93% and a positive return on equity of 21.26%.

Here are the key takeaways from Digital Turbine’s conference call:

• Digital Turbine reported a strong fiscal 2026, with revenue up 15% to $565 million and adjusted EBITDA up 69%, showing meaningful operating leverage as the business scaled.
• The company’s App Growth Platform was a standout, growing 57% year over year in the quarter and over 20% for the full year, helped by stronger advertiser demand, better targeting, and AI-driven performance improvements.
• Management said AI is becoming a major tailwind, both by improving internal efficiency and by helping customers achieve better returns; they noted they added over $70 million in revenue over the past year while using 4% less headcount.
• The company issued fiscal 2027 guidance for another year of double-digit growth, with revenue expected at $630 million-$650 million and adjusted EBITDA at $135 million-$145 million.
• Digital Turbine ended the year with $38 million in cash and $361 million of net debt, down from $409 million at the start of the year, and said it plans to keep using free cash flow to delever further. CFO Stephen Lasher also announced he will step down, with an interim CFO named.

Digital Turbine Price Performance

APPS stock opened at $4.81 on Wednesday. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.10 and a quick ratio of 1.10. Digital Turbine has a one year low of $2.74 and a one year high of $8.28. The stock has a market cap of $576.72 million, a PE ratio of -10.02, a P/E/G ratio of 0.18 and a beta of 2.40. The firm has a 50 day simple moving average of $3.55 and a two-hundred day simple moving average of $4.36.

Analysts Set New Price Targets

APPS has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Digital Turbine in a report on Friday, March 27th. Zacks Research lowered shares of Digital Turbine from a “strong-buy” rating to a “hold” rating in a report on Monday, April 6th. Finally, Wall Street Zen raised shares of Digital Turbine from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Digital Turbine presently has an average rating of “Hold” and a consensus price target of $7.75.

Hedge Funds Weigh In On Digital Turbine

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Invesco Ltd. grew its stake in Digital Turbine by 369.0% in the 4th quarter. Invesco Ltd. now owns 1,829,003 shares of the software maker’s stock worth $9,145,000 after buying an additional 1,438,986 shares in the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in Digital Turbine in the 4th quarter worth approximately $73,000. Mackenzie Financial Corp purchased a new stake in shares of Digital Turbine in the 4th quarter valued at $502,000. XTX Topco Ltd boosted its stake in shares of Digital Turbine by 21.3% in the 4th quarter. XTX Topco Ltd now owns 196,075 shares of the software maker’s stock valued at $980,000 after purchasing an additional 34,474 shares in the last quarter. Finally, VARCOV Co. purchased a new stake in shares of Digital Turbine in the 4th quarter valued at $232,000. Hedge funds and other institutional investors own 63.66% of the company’s stock.

Digital Turbine Company Profile

Digital Turbine, Inc (NASDAQ: APPS) is a mobile technology company that streamlines content delivery and app advertising across connected devices. Its platform enables carriers, OEMs, app developers and advertisers to engage users through personalized app recommendations, in-app promotions and turnkey monetization solutions. By integrating software directly on smartphones and tablets, Digital Turbine simplifies the user journey from discovery to installation without requiring additional downloads or redirects through traditional app stores.

The company’s flagship Ignite Platform offers end-to-end campaign management, combining demand-side advertising, real-time analytics and automated content fulfillment.