APPS

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Senior Vice President of Capital Markets - Brian Bartholomew Chief Executive Officer - William Stone Interim Chief Financial Officer - Joshua Kinsell Operator: Good day, and welcome to the Digital Turbine Reports -- Fiscal 2027 First Quarter Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead. Brian Bartholomew: Thank you. Good afternoon and welcome to the Digital Turbine Fiscal 2027 First Quarter Earnings Conference Call. Joining me today on the call to discuss our results are CEO Bill Stone and Interim CFO Josh Kinsell. Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we filed with the Securities and Exchange Commission. Also, during this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures, as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now I'd like to turn the call over to our CEO, Bill Stone. William Stone: Thanks, Brian. Good afternoon, everyone. I want to open my remarks by recognizing our team for delivering another quarter of strong results that exceeded our expectations. The results are even more encouraging as they are not due to any single factor, but due to many factors. And I'll break those down in my prepared remarks, which will be across 3 areas. First, we'll be looking back at our June quarter results. Second will be some commentary on the operational and strategic elements of our business that are enabling us to raise our guidance for the remainder of the fiscal year. And then finally, I want to provide some commentary on AI and macroeconomic trends in our business. Revenue for the June quarter came in at $166 million, representing 27% year-over-year growth. We also achieved nearly 70% year-over-year growth in adjusted EBITDA during the same period, demonstrating significant operating leverage in our model as we scale. I'm also pleased with the dramatic improvement in our balance sheet that benefits from our strong results. Last June quarter, our net leverage ratio was greater than 5 turns. Today, we're at a healthy 2.5 turns and as implied in our increased outlook, we expect this positive trend to continue. If we break our results down by segment, our On-Device Solutions business generated $110 million in revenue in the June quarter, which was up approximately 15% from last year. In particular, it was encouraging to see double-digit year-over-year growth in global devices, despite macro headwinds on global device volumes due to DRAM pricing issues in the supply chain. Growth in international ODS continues to be a bright spot as higher device volumes combined with higher revenue per device, or RPD, drove nearly 80% year-over-year growth. Our Application Growth Platform, or AGP business results were another bright spot. It was our fourth consecutive quarter of year-over-year double-digit growth and our second consecutive quarter of more than 50% year-over-year growth. Meanwhile, this compares to a global digital advertising market that is growing into high single digits. In other words, our AGP business is consistently growing many multiples more than the global industry growth rate each quarter. In June quarter, I was particularly pleased with our direct brand business growing over 70% and our DTX or SSP business growing over 40% year-over-year. It took longer than anticipated, but the combination of strong conviction to stay the course in our strategy, combined with the hard work to integrate our legacy SSP tech stacks with our brand demand into a data-driven marketplace and AI-first platform is now paying dividends. Our key growth drivers in June quarter were both rates and volume that powered our improved performance. On rates, we saw higher advertiser demand, which translated into improved pricing and fill rates, particularly for premium placements on our platform. This strong advertiser demand drove incremental international RPD expansion in our ODS business, resulting in nearly 80% growth year over year. We also had strong demand with our brand and DTX businesses, each growing rates by more than 40%. This is due to our platform delivering better return on ad spend for advertisers, which in turn allows for higher rates. This improvement in ad spend is being driven by AI for 2 reasons. First, our platform's first-party data is able to leverage our AI tools and machine learning models to drive better advertiser outcomes. And secondly, it's a tailwind where we're seeing brands migrate their spend away from the open web to other channels like apps, given traffic declines in the open web, which are caused by AI, and resulting in app usage growth as brands and agencies adopt the power of AI in the mobile app channel. In addition to these positive pricing trends, we continue to see strong diversification of our demand with 80% of our advertiser spend on DTX coming from non-gaming partners. The second driver was increased supply. Our global devices grew double digits year over year, driven by strong volumes from our international partners. And within the devices we have our technology integrated, we are seeing operators and OEMs wanting to use our technology on new screens for monetization. In addition, our AGP supply continues to add new apps and publishers by expanding distribution of our SDK footprint. We are seeing this globally with the growth in publishers, but in particular, it's helping driving strong performance with APAC publisher supply, as well as adding non-gaming publishers and AI publishers looking for monetization. Turning to the future, we're increasing our guidance today for the fiscal year, and there are 5 drivers for this increased forecast. The first is AI and data. Our ability to leverage our unique first-party data across our platform with DTIQ and IgniteGraph drives better outcomes. This in turn drives more revenue because of better return on spend for advertisers. I'll provide some additional commentary later in my remarks on the macro impact of AI on our business. Second is the flywheel. Connecting our diversified demand and supply drives each other. We have nearly 3 billion devices and more than 80,000 apps using our ad tech technology. The opportunity for these apps to drive more user acquisition to our platform, and hence more monetization, will be a growth driver. The third driver is brand. Our brand business showed impressive 70% year-over-year growth. Our focus is leveraging the macro tailwinds of more time in apps, combined with our micro first-party data and audience targeting to drive even more scale and growth. There are a variety of product and operational improvements being implemented real-time that are improving our ability to scale this important part of our business. Fourth driver is Ignite. Our international ODS momentum has been fueled by Latin America and Europe, and current and future supply wins are expected to mitigate concerns around the global device supply chain. In addition, our Ignite platform is showcasing there is more opportunity to not just grow device supply, but also leverage the platform capability as a software enabler for distribution of other products on the screens of devices versus just our current products such as SingleTap, out-of-the-box setups, and notifications. We are doing this today in the U.S. with an AI-first partner distributing AI agents to devices and we see this expanding into other areas such as e-commerce, lock screens, and other forms of content distribution. And finally, it's the growth of alternative applications. We continue to ramp and scale more and more partners, distributing their versions of applications, helping them get to devices, whether this is via our data targeting, SingleTap, our DSP, and so on. The recent outcome of the Epic-Google case and the Google rulings in the EU are expected to open up opportunities for increased alternative distribution. Publishers are now seeing real-time what is happening to their businesses because of the impacts of AI on the open web and want to have more control over their destiny for the future versus being reliant on only 1 or 2 sources of distribution. These 5 things are important because it showcases our business is not relying upon any single factor to drive future growth. We've got many shots on goal that provide optimism in our ability to drive top and bottom line growth. To close out my prepared remarks, I want to provide some commentary on the impact of AI and other macroeconomic factors to our business. Regarding AI, it's clearly transformational, an exciting time, and a tailwind for our business. It's reinventing businesses, including ours, in 3 main ways. First is the automation and simplification of workflows and processes, which is now showing up in our results. A year ago, our revenue per employee was about $800,000. Today, it is in excess of $1 million. The driver of this efficiency is the ability to use AI and automation activities to scale our business. We've implemented numerous new AI and automation simplification activities and processes from areas such as quality assurance, our back office, campaign management, software development, and data management, just to name a few. We're seeing an acceleration in these activities as we organize our people, our systems, and our processes for this AI-first world. The second is leveraging AI in our data to improve outcomes for our customers. As you've seen in our recent Google and Databricks press announcements, we're combining our unique first-party data signals with AI enhancements to drive better outcomes for customers leveraging our DTIQ and IgniteGraph capabilities. These are not just impacting our strong results today, but will be revenue and EBITDA drivers for us in the future. And the final area is how the broader AI landscape will leverage DT's distribution and on-device footprint and data to help their businesses grow. And there are 3 important macro trends that we expect to be tailwinds for us. The first is more applications. According to recent analysis from market intelligence provider, Appfigures, worldwide app releases in first quarter of 2026 were up 60% year-over-year across both Apple's App Store and Google Play. AI makes it easier for anyone to create apps, driving both growth in app stores as creators no longer need technical skills to build mobile software. And these applications all need distribution to reach consumers, given the inherent discovery limitations in the legacy 2 app stores. The second trend is the increase in time spent in applications. Today the average consumer is spending about 5 hours per day inside applications, which is up about 1 hour over the past decade. This trend is accelerating as integration of AI chatbots creates a shift in the channels of how we consume information, leaning towards apps and away from the open web. Multiple measurement sources have reported that AI has likely caused a 10% open web traffic decline so far, with some informational categories seeing anywhere from 20% to 40% declines. The final trend bringing all of this together is monetization. And for centuries, one trend's been consistent. Media dollars follow eyeballs. And as our eyeballs continue to spend more and more time in applications because of enabling technologies like AI, which is creating more breadth of apps and more depth of time and spend in apps, this is a positive for us. In addition to AI, I've also been receiving many questions on potential macroeconomic impacts to our business, given wider fears around inflation, tariffs, and geopolitics. One of my favorite things about our mobile AI cloud business is that we are more insulated than the vast majority of companies, as our business is a digital one without the traditional input cost pressures many companies must navigate. Plus, the majority of our customers are using our platform to sell their digital goods and services versus goods that may be more sensitive to those risks. Of course, no single business is 100% insulated from macroeconomics, but as we saw during the pandemic, our business is a resilient one, insulated from these factors, given our mobile-first, high operating leverage approach matching where consumers are spending their time. We expect AI to only accelerate versus slow down these trends. And with that, I'll turn it over to Josh to take you through the numbers. Joshua Kinsell: Thank you, Bill. And good afternoon, everyone. Let me turn to our first quarter fiscal 2027 results. We are off to a strong start to the new fiscal year with growth across both segments. Total net revenue for the quarter was $166 million, up 27% year over year, extending our strong fiscal 2026 exit momentum. On-Device Solutions net revenue was $110 million, up 15% year over year. Growth was again driven by our international business where higher device volumes and higher revenue per device continued to drive strong results. App Growth Platform net revenue was $56.6 million, up 56% year over year, continuing the growth we highlighted last quarter. This was led by DTX, where revenue increased by 54%. These results reflect both continued onboarding of publishers and demand partners, particularly in Asia Pacific, and the performance of our AI powered optimization capabilities. Turning to profitability, non-GAAP gross margin was 49.4% in the quarter, up from 47.3% in the year-ago period. This was driven by favorable segment and product mix as AGP continues to grow as a share of our business. Cash operating expenses were $39.5 million, up 7% year-over-year, reflecting a continued expense discipline even as we invest in our highest priority growth initiatives. Notably, we reached a significant milestone this quarter as our run rate revenue per employee has risen to over $1 million on an annual basis. The combination of strong top line growth, favorable mix, and expense discipline drove another quarter of substantial adjusted EBITDA. Adjusted EBITDA totaled $42.5 million, up 69% year-over-year, with margin expanding nearly 640 basis points to 25.6% versus the year-ago quarter. Evidence of a meaningful operating leverage beginning to emerge in our model. On the bottom line, we reported a GAAP net loss of $3.2 million, or $0.03 per share, an improvement from a net loss of $14.1 million, or $0.13 per share, in the first quarter of fiscal 2026. It should be noted that we're finalizing a non-cash adjustment in our Form 10-Q that may be recorded against beginning retained earnings. This adjustment would impact the GAAP net loss, but not our non-GAAP results. On to our non-GAAP net income of $24.1 million or $0.19 per share based on 125.6 million diluted shares outstanding. This is more than tripling our non-GAAP net income of $7 million or $0.06 per share in the year-ago quarter, driven by strong top-line growth and continued operating expense discipline. Moving on to the cash flow and the balance sheet, we generated $17.9 million of cash from operations in the quarter, more than double the $8.8 million we generated in the first quarter of last year. Non-GAAP free cash flow was $11.3 million, an improvement of approximately $10 million versus the prior year period. We also made progress in strengthening our balance sheet. We ended the quarter with cash and cash equivalents of $43.2 million, an increase of more than $5 million from the start of the fiscal year. Our total debt, net of debt issuance costs and discounts, reached approximately $352.9 million, which was down by more than $8 million during the quarter. We amended our financing agreement during the quarter to secure more favorable terms. This reflected an improved leverage profile we have built over the past several quarters. Subsequent to quarter end, as a result of achieving certain leverage thresholds under that agreement, the applicable margin on our largest loan tranche was reduced by 50 basis points. We continue to remain focused to further strengthen the balance sheet as we move through the fiscal year. Turning to our outlook, given our strong start to the year and the continued momentum we are seeing, we are raising our fiscal 2027 guidance. We now expect revenue in a range of $650 million to $670 million for the year and adjusted EBITDA in a range of $145 million to $155 million, both up from the initial ranges of $630 million to $650 million and $135 million to $145 million we provided last quarter. With that, let me hand it back to the operator to open the line for questions. Operator? Operator: [Operator Instructions] Our first question comes from Anthony Stoss of Craig-Hallum. Anthony Stoss: Bill and team, congrats on the strong execution yet again. So Bill, you talked about having many shots on goal with your different product offerings. How do you prioritize the growth drivers for this year and next? And then I had a couple of follow-ups. William Stone: Yes, thanks, Tony. If we kind of look in the rearview mirror, I think the really the 3 stars of the show were the international ODS business, up 80%. And I know we've talked in the past around concerns around device headwinds on DRAM prices. As you've seen Apple and others raising prices on devices. And the fact that we're able to grow our devices almost 15% in the quarter, and then our RPDs were up 40-plus percent, I think it's an 80% growth rate. I think that was star number 1. But star number 2 and 3 were really on the AGP side. And just seeing second consecutive quarter of more than 50% growth in that business with our brand business, our DTX business, really starting to show some nice momentum out in the marketplace. We started the journey many years ago in the belief that we could create this mobile first channel for brand dollars coming on to the exchange where it's been largely focused on games. So that bearing fruit is something it's great to see. It's kind of turning forward and looking into the future on the increased guide today, if I was going to prioritize, I think data and AI is at the top of the list for us. We've got a lot of untapped potential in that part of the business. Our brand business as well has got a lot of momentum behind it. So I'd probably put those in the short term as the top 2 priorities. And the other 3 things I talked about with flywheels and Ignite and alt apps will be the catalyst to keep it going in the future. Anthony Stoss: Got it. And then there's been a lot of media reports about the whole saga between Google and Epic and the jury trials, etc. Is that affecting at all your alternative app initiatives? And then after that, I have one last question. William Stone: Yes. So, we think that this is going to open up a lot of opportunities now that, that injunction has been settled and Google has opened up their app store to other app stores. We think that's a tailwind. I actually just put a blog out on that. I think it was earlier today that got published, and so I'd encourage everyone to go take a look at that for the details. But net-net is it's just showing more democratization of app stores, and so I think that's a positive for companies like us. Anthony Stoss: Got you. Last question. You kind of alluded to on the Ignite section of your call here about more deals coming and international business being strong. I'm just curious, it's been a month and a half or so since your Orange deal has been announced. Has that kind of rattled the cage, if you will, with some of the other European carriers to go in either on Ignite or SingleTap? I'd love to hear. William Stone: Yes, we've got a lot of momentum right now in that part of the business. And momentum begets momentum. And I mentioned in my prepared remarks that the pipeline's looking really good. So, I'd say stay tuned for more momentum coming there. Operator: Our next question comes from Dan Kurnos of StoneX. Daniel Kurnos: Bill, definitely a fun one to jump into here. Nice print. Just first, maybe can you give us a little bit more color and unpack the international ODS device growth, just any areas of strength, OEMs, just any additional color you can give, especially given the broader backdrop that you have. And then I want to follow up with several AGP questions. William Stone: Yes, sure. On the international ODS front, we really saw growth from really the OEM partners in particular. So, Motorola and Samsung were encouraging. And then some of our international operator partners also showed nice growth. And so that's a good news story, given, again, some of the broader macro things that we're all reading headlines around just chipset prices and so on. So the fact to see growth in that part of our business is really something else also helps us bring more demand to the platform. So more supply actually brings more demand. And then you get a cumulative effect, which is showing up in the results of the 80% year-over-year growth. Daniel Kurnos: Got it. And then to that point on demand, so brand up 70%, not that DTX is a slouch, up 40%. We know that brand budgets can be a little lumpier and more seasonal and programmatic. I mean, this is obviously an uneven ad market to say the least, although mobile has been doing particularly well and digital out of home. So how much of this is durable share gain and how should we kind of model that split for the next, pick a number 3, 4, 5, 6 quarters, because the momentum in AGP has been really strong. William Stone: Yes, so we can probably spend some more time offline on some of the details around how to model it. But I think in terms of just kind of more generally speaking, we expect the growth to continue. A lot of the hard work we had to do to establish brand as a channel for mobile has been done. As you're well aware, a lot of the digital brand dollars disproportionately go to things like CTV or go to things like retail media. So we had to establish this mobile-first channel for brand. And that required a lot of legwork externally with holding companies and agencies and a lot of the big names, the Procter & Gamble and Apple and Target and Amazon and so on, they're spending money with us today. So that took time to get those budgets and get those relationships, and we've done that externally. And then internally, getting the tech stacks aligned, getting some of the legacy acquisition assets integrated together to be able to deliver those experiences, that's now paying dividends for us. We continue to leverage our data and our ability to target audiences, our expectation is that brands are going to continue to spend. So we're pretty optimistic about that being a growth driver for us. Daniel Kurnos: And is there any way, Bill, because you brought up AI and yield execution here, is there any way to kind of parse out how much of the fill rate and CPM growth is kind of market wide versus company specific? William Stone: Yes, I don't have anything specific to talk about on the macro side other than what we've seen is kind of mid to high single digit growth from a macro perspective. And like I mentioned in my prepared remarks that our rates are kind of closer to north of 40% year over year. And that's driven by just better targeting, better outcomes, better formats, all helping to drive better rates. Daniel Kurnos: And last one is just what's the monetization lag on newly signed distribution? You talked about your SDK footprint expansion in APAC and non-gaming verticals, and I assume you've already kind of spent the CapEx build out associated with this. William Stone: Yes, so what we're seeing right now that's really encouraging is the trend on the spend is encouraging, which is part of what's powering the 40% growth in DTX. And you mentioned non-gaming specifically. So those could be news, weather, sports, e-commerce, AI. There's a whole variety of categories that all of these fall into, that we're starting to see encouraging trends for. And so, we believe we're taking share from competitors as a result of that. And it's something that you're really great to see showing up in the results. Daniel Kurnos: Got it. Congrats on the quarter. Operator: [Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Bill for any closing remarks. William Stone: Yes, thanks all for joining our call tonight. We look forward to connecting in a few months to update you on our fiscal '27 second quarter earnings call. Have a great night. Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Digital Turbine (APPS) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $166 million, up 27% year-over-year. On-Device Solutions Revenue: $110 million, up 15% year-over-year. App Growth Platform Revenue: $56.6 million, up 56% year-over-year. Non-GAAP Gross Margin: 49.4%, up from 47.3% in the year-ago period. Cash Operating Expenses: $39.5 million, up 7% year-over-year. Adjusted EBITDA: $42.5 million, up 69% year-over-year, with margin expanding nearly 640 basis points to 25.6%. GAAP Net Loss: $3.2 million, or $0.03 per share, an improvement from a net loss of $14.1 million, or $0.13 per share, in the year-ago quarter. Non-GAAP Net Income: $24.1 million, or $0.19 per share, more than tripling from $7 million, or $0.06 per share, in the year-ago quarter. Cash from Operations: $17.9 million, more than double the $8.8 million generated in the first quarter of last year. Non-GAAP Free Cash Flow: $11.3 million, an improvement of approximately $10 million versus the prior year period. Cash and Cash Equivalents: $43.2 million, an increase of more than $5 million from the start of the fiscal year. Total Debt: Approximately $352.9 million, down by more than $8 million during the quarter. Fiscal 2027 Guidance: Revenue expected in a range of $650 million to $670 million, and adjusted EBITDA in a range of $145 million to $155 million, both raised from initial ranges. Warning! GuruFocus has detected 3 Warning Signs with APPS. Is APPS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 27% year-over-year to $166 million, with adjusted EBITDA up 69%. International On-Device Solutions revenue surged nearly 80% year-over-year, driven by higher device volumes and revenue per device. App Growth Platform (AGP) delivered its fourth consecutive quarter of double-digit growth, with over 50% year-over-year growth, outpacing the industry. Direct brand business grew over 70% and DTX (SSP) grew over 40% year-over-year, showing strong demand diversification. Net leverage ratio improved from over 5 turns to 2.5 turns, and the company raised its fiscal 2027 revenue and adjusted EBITDA guidance. Global device volumes face macro headwinds due to DRAM pricing issues in the supply chain. GAAP net loss of $3.2 million was reported, though improved from the prior year. A non-cash adjustment is being finalized that may impact GAAP net income but not non-GAAP results. Brand business growth may be lumpy and seasonal, posing modeling challenges. The company is not fully insulated from macroeconomic risks such as inflation, tariffs, and geopolitics, despite relative resilience. Q: How do you prioritize the growth drivers for this year and next, given the many product offerings? A: Bill Stone (CEO) highlighted that the top short-term priorities are data and AI, followed by the brand business, given their untapped potential and momentum. The other driversFlywheel, Ignite, and alternative appsare expected to be catalysts for future growth. He noted the "three stars" of the quarter were international ODS (up 80%), AGP (second consecutive quarter of 50%+ growth), and the brand/DTX businesses showing strong momentum. Q: Can you provide more color on the international ODS device growth, including areas of strength and OEMs, given the broader macro backdrop? A: Bill Stone (CEO) attributed the growth to strong performance from OEM partners, particularly Motorola and Samsung, as well as international operator partners. This growth occurred despite macro headwinds like DRAM pricing and chipset costs. He emphasized that increased supply brings more demand to the platform, creating a cumulative effect that drove the 80% year-over-year growth in international ODS. Q: How much of the AGP growth (brand up 70%, DTX up 40%) is durable share gain, and how should we model the split over the next few quarters? A: Bill Stone (CEO) stated that the hard work to establish mobile as a channel for brand dollars is done, with significant legwork completed with holding companies, agencies, and major brands like Procter & Gamble, Apple, Target, and Amazon. The integration of legacy tech stacks is now paying dividends. He expects growth to continue as long as the company leverages its data and audience targeting capabilities, expressing optimism about brand spending as a growth driver. Q: Can you parse out how much of the fill rate and CPM growth is market-wide versus company-specific? A: Bill Stone (CEO) noted that the macro digital advertising market is growing at mid-to-high single digits, while the company's rates are growing at north of 40% year-over-year. This significant outperformance is driven by better targeting, better outcomes, and better formats, which are company-specific factors powered by their AI and data capabilities. Q: What are the monetization lags on newly signed distribution, and have you already spent the CapEx buildout associated with SDK footprint expansion in APAC and non-gaming verticals? A: Bill Stone (CEO) indicated that the trend on spend is encouraging, powering the 40% growth in DTX. The non-gaming categories include news, weather, sports, e-commerce, and AI publishers. He believes the company is taking share from competitors as a result of these trends, which are showing up in the results. Q: Is the Epic vs. Google case and the Google rulings in the EU affecting your alternative app initiatives? A: Bill Stone (CEO) stated that the settled injunction and Google opening its app store to other app stores is a tailwind for the company. He published a blog on the topic, emphasizing that it demonstrates the democratization of app stores, which is positive for companies like Digital Turbine. Q: Has the Orange deal announcement rattled the cage with other European carriers to go in on Ignite or single tap? A: Bill Stone (CEO) confirmed there is significant momentum in that part of the business, stating "momentum gets momentum." He noted the pipeline is looking very good and encouraged staying tuned for more announcements, without providing specific details. Q: What were the key drivers behind the strong Q1 results, and why are you raising full-year guidance? A: Bill Stone (CEO) and Josh Kinsell (Interim CFO) highlighted several factors: strong revenue growth of 27% year-over-year to $166 million, adjusted EBITDA growth of 69% to $42.5 million, and significant balance sheet improvement with net leverage down to 2.5 turns from over 5 turns. The guidance raise to $650-$670 million in revenue and $145-$155 million in adjusted EBITDA is driven by AI and data capabilities, the flywheel effect, brand momentum, Ignite international growth, and alternative app distribution opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 27% was driven by a multi-factor strategy rather than a single catalyst, with significant operating leverage resulting in nearly 70% adjusted EBITDA growth. International On-Device Solutions (ODS) grew 80% year-over-year, as higher device volumes and increased revenue per device (RPD) successfully offset global supply chain headwinds related to DRAM pricing. The Application Growth Platform (AGP) outperformed the broader digital advertising market by growing over 50%, fueled by the integration of legacy tech stacks into an AI-first data marketplace. Management attributes improved pricing and fill rates to AI-enhanced targeting, which delivers better return on ad spend (ROAS) and attracts brands migrating away from the declining open web. Operational efficiency reached a milestone of $1 million in revenue per employee, driven by the automation of software development, campaign management, and back-office workflows via AI. Strategic positioning in non-gaming sectors now accounts for 80% of advertiser spend on the DTX exchange, diversifying the business into non-gaming sectors, including news, weather, sports, e-commerce, and AI partners. Full-year guidance was raised to $650M-$670M in revenue based on sustained momentum in brand advertising and international Ignite platform expansion. Management expects the recent Epic-Google legal rulings to accelerate alternative app distribution opportunities as publishers seek to reduce reliance on legacy app stores. The Ignite platform is evolving from a simple installation tool into a software enabler for AI agents, e-commerce, and lock-screen content distribution. Future growth assumes a continued shift in consumer behavior toward mobile apps, where AI chatbots are increasing time spent and driving media dollars away from the open web. The company plans to further strengthen the balance sheet, targeting a continued reduction in net leverage from the current 2.5 turns. Net leverage ratio improved significantly from over 5 turns in the prior year to 2.5 turns, reflecting disciplined debt reduction of $8 million during the quarter. A 50-basis point reduction in the interest margin on the largest loan tranche was triggered by achieving specific leverage thresholds. Management noted a pending non-cash adjustment to beginning retained earnings in the upcoming Form 10-Q, though this will not impact non-GAAP results. The business model is characterized as resilient to inflationary and tariff risks because it operates digitally without traditional physical input cost pressures. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified data and AI as the top short-term priorities due to untapped potential in audience targeting. Brand advertising momentum is the second priority, while the 'flywheel' effect of device supply and alternative app stores serves as a long-term catalyst. Management views the injunction as a major tailwind that democratizes app distribution by forcing Google to open its ecosystem to third-party stores. Publishers are increasingly seeking 'control over their destiny' to avoid total reliance on one or two dominant distribution sources. The 70% growth in brand revenue is considered durable because the company has successfully established a mobile-first channel for major agencies and holding companies. Growth is expected to continue as Digital Turbine captures market share from competitors by leveraging first-party data for non-gaming verticals like e-commerce and news.

Digital Turbine APPS delivered first-quarter fiscal 2027 adjusted earnings of 19 cents per share, up from 6 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 14 cents by 35.7%.Net revenues totaled $166 million, which increased 27% from the year-ago quarter and surpassed the consensus estimate of $150 million by 10.7%. Strength in the App Growth Platform and a sharp year-over-year jump in adjusted EBITDA were key highlights.By segment, Digital Turbine's On Device Solutions generated $110 million of net revenues before intercompany eliminations, up 15% year over year, led by higher device volumes and revenue per device from international partners. App Growth Platform net revenues came in at $56.6 million, up 56% year over year, marking the segment's second consecutive quarter of more than 50% growth on the back of strength in both the brand business and DT Exchange. Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote The non-GAAP gross margin expanded 210 basis points (bps) year over year to 49.4%. Sales and marketing expenses, as a percentage of revenues, decreased 114 bps from the year-ago quarter's level to 9.2%.General and administrative expenses, as a percentage of revenues, decreased from the year-ago quarter's level of 32.8% to 19.9%.Product development expenses, as a percentage of revenues, decreased 137 bps to 6.4%.Non-GAAP EBITDA was $42.5 million as compared with $25.1 million in the year-ago quarter, indicating an increase of 69% year over year, with margin expanding nearly 640 bps to 25.6%.Digital Turbine reported GAAP income from operations of $23.1 million, up from a loss of $4.7 million in the year-ago quarter, reflecting the combined impact of higher scale and continued expense discipline.Non-GAAP net income more than tripled to $24.1 million from $7 million in the year-ago quarter, driven by strong top-line growth and operating leverage. As of June 30, 2026, cash and cash equivalents (including restricted cash) were $43.2 million compared with $38 million as of March 31, 2026.In the reported quarter, the company generated cash flow from operations of $17.9 million compared with $4.38 million in the previous quarter.Non-GAAP free cash flow was $11.3 million compared with a free cash flow burn of $3 million in the previous quarter.Total debt, net of issuance costs and discounts, was $352.9 million, down more than $8 million sequentially, reflecting continued deleveraging following an amendment to the company's financing agreement during the quarter. Management pointed to broad-based momentum across both segments, continued AI-driven yield improvement and balance sheet strengthening as key supports for the raised outlook. The updated guidance implies a higher profitability profile compared with the initial fiscal 2027 view, underscoring that the company's growth initiatives are translating into more durable earnings power.For fiscal 2027, APPS now expects non-GAAP revenues between $650 million and $670 million, up from the prior guided range of $630 million to $650 million. Adjusted EBITDA is projected to be in the band of $145 million to $155 million, up from the earlier guidance of $135 million to $145 million. APPS currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer & Technology include Applied Materials AMAT, ACI Worldwide ACIW and Analog Devices ADI. Each stock sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Applied Materials shares have gained 112.7% in the year-to-date period. Applied Materials is set to report second-quarter 2026 results on Aug. 13.Shares of ACI Worldwide have gained 19.7% in the year-to-date period. ACI Worldwide is set to report second-quarter 2026 results on Aug. 6. Shares of Analog Devices have rallied 40.3% year to date. Analog Devices is slated to report fiscal third-quarter 2026 results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Digital Turbine, Inc. (APPS) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report ACI Worldwide, Inc. (ACIW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Digital Turbine, Inc. APPS used its fiscal first-quarter 2027 earnings call to frame artificial intelligence, first-party data and brand advertising as the main engines behind its improved outlook. Management also emphasized that growth is broadening across both business segments, while better mix, operating discipline and lower leverage are giving the company more room to invest. Interim CFO and chief accounting officer Josh Kinsell raised fiscal 2027 revenue guidance to $650 million-$670 million from $630 million-$650 million. Kinsell also lifted adjusted EBITDA guidance to $145 million-$155 million from $135 million-$145 million, citing the strong start and continued operating momentum. The quarter provided supporting context. Non-GAAP earnings of 19 cents per share topped the Zacks Consensus Estimate of 14 cents, while revenues of $166 million exceeded the $149.8 million estimate. Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote CEO Bill Stone identified AI and data as the company’s highest short-term priority, with brand advertising second. He placed the platform flywheel, Ignite and alternative app distribution behind those initiatives as longer-term catalysts. Stone said Digital Turbine is combining first-party data with DTIQ, IgniteGraph and machine-learning tools to improve targeting, advertiser returns, pricing and fill rates. He also described AI as an internal efficiency tool across quality assurance, campaign management, software development and back-office processes. Annualized revenue per employee now exceeds $1 million. Stone said the App Growth Platform delivered a second consecutive quarter of more than 50% year-over-year growth. Brand revenues rose more than 70%, while the DTX exchange benefited from stronger rates and broader supply. AGP revenues of $56.6 million were up 56%, with DTX revenues rising 54%. Publisher and demand-partner additions in Asia-Pacific supported the expansion. Stone added that 80% of DTX advertiser spending now comes from non-gaming partners. Management is also adding news, weather, sports, e-commerce and AI publishers to widen the exchange’s mix. Stone said On-Device Solutions revenues reached $110 million, up 15%, despite device-market pressure tied to DRAM pricing and supply-chain conditions. International ODS was the standout, growing nearly 80% as both device volumes and revenue per device increased. Stone pointed to strength from Motorola, Samsung and international carrier partners. Ignite is also moving beyond existing products. Stone identified AI agents, e-commerce, lock screens and other content distribution as expansion areas for the platform. A Craig-Hallum analyst asked management to rank the company’s growth drivers. Stone responded with a confident near-term emphasis on AI, data and brand, while reserving Ignite, alternative apps and the broader flywheel for future expansion. A Benchmark Company analyst pressed on whether higher advertising rates reflected industry conditions or company-specific execution. Stone contrasted mid-to-high-single-digit market growth with APPS rates above 40%, crediting better targeting, formats and advertiser outcomes. On brand durability, Stone said agency relationships and internal technology integration are now in place. He also characterized the Epic-Google outcome as a tailwind for alternative app distribution and said the European carrier pipeline retains momentum. Kinsell said non-GAAP gross margin improved to 49.4% from 47.3%, while cash operating expenses increased 7% to $39.5 million. Adjusted EBITDA margin expanded nearly 640 basis points to 25.6%. Stone described the operating model as increasingly scalable. Management’s closing posture centered on using AI, data and distribution to sustain growth while continuing to strengthen the balance sheet. APPS carries a Zacks Rank #3 (Hold), alongside a Value Score of B, Growth Score of A, Momentum Score of C and a VGM Score of A. The strong Growth and VGM readings and favorable Value score are offset by a more moderate Momentum score. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks Style Scores are designed to complement the Zacks Rank, with A and B grades viewed more favorably than lower grades. The current Rank supports a hold posture, but it can change as analyst estimates are revised following the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Digital Turbine, Inc. (APPS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- SpaceX’s first earnings report following its blockbuster initial public offering is one of the most anticipated events of the summer on Wall Street. Whether it’ll give investors a reason to buy the sinking stock is another matter. Most Read from Bloomberg Beer Dynasty Families Sell €731 Million Stake in AB InBev Apple’s New CEO Taps Retired Hardware Executive for Management Team Taco Bell Met With Michigan on Parasite Weeks Before Recall Mamdani Dismisses Business Leaders Advising NYC’s Mayor’s Fund S&P 500 Closes Near Record High on US-Iran Hopes: Markets Wrap Elon Musk’s satellite, space and artificial intelligence company went public at $135 in June, and the shares have been on a roller coaster ride ever since, shooting up to $225 in the first days of trading and then plunging below the offering price. They closed Monday at $114.53, down 15% from the IPO and 49% from their high on June 16, erasing more than $1 trillion in market value from that peak. Earnings will give investors a chance to reassess the stock. The problem is SpaceX isn’t profitable and has a very speculative business at this point, so the results may end up raising more questions than they answer. With the shares still trading at a sky-high valuation despite the selloff, it will be difficult to entice new buyers. “There is so much that’s in the future of the SpaceX story, so much that hasn’t been done yet, or ever, so there’s nothing to make you comfortable,” said Drew Cupps, portfolio manager and head of the 5Perspectives Growth Team investment group at Polen Capital, which owns a small position in the company. “There’s not a lot of here and now. There’s no, look at last year to justify what you should pay now.” To make matters even more challenging for the stock, a flood of fresh SpaceX shares also is about to hit the market, as the first of many lockups that ban early investors from selling expires two days after the earnings report. As many as 911.5 million SpaceX shares worth more than $100 billion will be released on Aug. 6. And that’s just the start as billions of additional shares will be eligible for trading before the end of the year. All of which will weigh on the stock price simply based on the market’s supply and demand function. “It’s a total mess,” said Ken Mahoney, chief executive officer of Mahoney Asset Management. Wall Street expects SpaceX to report a loss of 24 cents per share in the second quarter on $6.8 billion of revenue. The results have been somewhat of a moving target, however, because so little information about the business is available. Analysts have widened their estimates for the company’s loss by 18% in the past month. “I have very little confidence in those estimates,” said Jim Lebenthal, chief market strategist at Cerity Partners. “I don’t mean this obnoxiously, but I think they’re mostly licking their fingers and sticking it in the wind.” What investors and analysts will primarily be looking for is management’s comments on the company’s progress with AI, Starlink and its rocket launch business. “We don’t have concrete earnings power that would be analogous to other parts of the market, but we do have a visionary set of massively capable assets that are in some cases unrivaled over all others,” said Polen Capital’s Cupps. SpaceX’s results come on the heels of a strong run of earnings reports from big AI spenders, including Alphabet Inc., Microsoft Corp. and Amazon.com Inc. Investors are particularly rewarding companies that are showing clear payoffs from their capital expenditures. For example, shares of Amazon and Microsoft surged following the companies’ results. With a market capitalization of roughly $1.5 trillion, SpaceX rivals the size of many megacap tech firms and is bigger than Musk’s other company, Tesla Inc. But its financials aren’t close, at least not yet, meaning investors may apply additional scrutiny to its spending plans. Analysts expect the company to report capital expenditures of $18.5 billion in the quarter and $45.5 billion for 2026. The primary issue facing SpaceX shares is their extreme market valuation. The stock trades at about 448 times earnings estimated over the next 12 months, the highest multiple of any member of the Nasdaq 100 Index, and 26 times estimated sales, which is among the 10 highest ratios in the technology-heavy benchmark. That helps explain why the short interest in SpaceX, which measures bearish bets against the stock, jumped to 34% of the company’s float, or the number shares available to trade in the market, from about 18% a month ago, according to data from S3 Partners. There are already more short bets against SpaceX than there are against Tesla. Still, Wall Street remains overwhelmingly bullish on the stock. Of the 39 analysts tracked by Bloomberg who cover the company, 30 have buy ratings. And few have backtracked on their extravagant predictions from when SpaceX went public. Raymond James analyst Brian Gesuale is sticking with his call for the shares to reach $800 within the next 12 months on exponential revenue growth. Adam Jonas at Morgan Stanley recently reiterated his $300 price target and said that shares trading at $100 values the company’s AI business at zero, making this an attractive entry point for investors. And Bernstein’s Douglas Harned is urging investors to ignore the specifics of the earnings report and focus instead on the company’s confidence in the future. “We believe the quarterly results should not matter,” Bernstein analysts led by Harned wrote in a note to clients on Friday. “What will be important is the level of confidence projected by management regarding the company’s growth path. Investors should look beyond short term stock movements as we view the case for a multi-trillion dollar valuation is about ‘if’ not ‘when’, for orbital data center plans.” Tech Chart of the Day Amazon.com Inc. surpassed $3 trillion in market value for the first time, becoming only the fifth company to ever reach the milestone. Top Tech Stories Palantir Technologies Inc. raised revenue and income forecasts for the full year after posting second-quarter sales that far exceeded Wall Street’s estimates, describing commercial demand for its data analytics tools as “otherworldly.” Snap Inc. posted higher-than-projected quarterly sales and gave an upbeat forecast for the current period, signaling optimism ahead of the September commercial debut of its first pair of augmented reality glasses. Grab Holdings Ltd. raised its annual earnings and sales forecasts, a sign that robust demand from Southeast Asian commuters is helping to absorb impact of higher fuel prices stemming from the Middle East conflict. Apple Inc. briefly removed the Telegram messaging app from its App Store after finding content on the platform that violated a ban on child sexual abuse material. China is growing anxious that Anthropic PBC’s Mythos could be wielded against the world’s second-biggest economy, adding a volatile new issue to already heightened tensions before a planned summit between Xi Jinping and Donald Trump. Earnings Due Earnings Premarket: Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek Americans Are Rethinking Their Love Affair With Plant Milks A Wall Street Troll Reinvented Himself as the Groypers’ Pick for Governor. The GOP Can’t Get Rid of Him Trump’s Arctic Mining Deal Signals a New Era of State Capitalism Tokenmaxxing Is Dead. Now Comes the Belt Tightening Why Wall Street Is Getting Angry ©2026 Bloomberg L.P.

Interested in Digital Turbine, Inc.? Here are five stocks we like better. Digital Turbine reported strong fiscal Q1 growth: Revenue increased 27% to $166 million, adjusted EBITDA rose 69% to $42.5 million, and adjusted EBITDA margin expanded to 25.6%. Non-GAAP net income climbed to $24.1 million, though the company still posted a GAAP net loss of $3.2 million. App Growth Platform led segment performance, with revenue up 56% to $56.6 million, while international On Device Solutions revenue grew nearly 80%. Management cited stronger advertiser demand, improved pricing and fill rates, AI optimization, and growth among international device and operator partners. The company raised its fiscal 2027 outlook to $650 million-$670 million in revenue and $145 million-$155 million in adjusted EBITDA. Digital Turbine also improved cash flow, reduced debt by more than $8 million during the quarter, and lowered its net leverage ratio to 2.5 times. MarketBeat Week in Review – 02/10 - 02/14 Digital Turbine (NASDAQ:APPS) reported fiscal 2027 first-quarter revenue growth of 27% and raised its full-year outlook, citing gains in its international device business, app-growth platform and advertising demand. Revenue for the quarter ended in June was $166 million, up from the prior-year period. Adjusted EBITDA rose 69% year over year to $42.5 million, while adjusted EBITDA margin expanded to 25.6% from 19.2% a year earlier, according to Interim CFO Josh Kinsell. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Digital Turbine Roars Back—What’s Driving the Ad Tech Surge? The company reported a GAAP net loss of $3.2 million, or $0.03 per share, compared with a loss of $14.1 million, or $0.13 per share, in the fiscal 2026 first quarter. Non-GAAP net income increased to $24.1 million, or $0.19 per diluted share, from $7 million, or $0.06 per share, a year earlier. Digital Turbine’s On Device Solutions, or ODS, segment generated $110 million in revenue, up 15% year over year. CEO Bill Stone said international ODS was a key contributor, with nearly 80% year-over-year growth driven by increased device volumes and higher revenue per device. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? 3 Stocks for Bargain Hunters to Buy Now Stone said the company saw double-digit growth in global devices despite supply-chain concerns related to DRAM pricing. During the question-and-answer session, he identified Motorola and Samsung as sources of strength among OEM partners, while also pointing to growth from international mobile operators. The App Growth Platform, or AGP, generated $56.6 million in revenue, an increase of 56% from a year earlier. Kinsell said DTX revenue rose 54%, supported by publisher and demand-partner onboarding, particularly in Asia-Pacific, as well as the company’s AI-powered optimization capabilities. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Stone said Digital Turbine’s direct brand business grew more than 70% year over year, while its DTX or supply-side platform business grew more than 40%. He said advertiser demand improved pricing and fill rates, particularly for premium placements, and noted that 80% of DTX advertiser spending came from non-gaming partners. “Our key growth drivers in June quarter were both rates and volume,” Stone said, attributing higher rates to advertiser demand and the platform’s ability to generate better return on ad spend. Management characterized artificial intelligence as a tailwind for its operations and customer offerings. Stone said the company is using AI and automation across quality assurance, back-office processes, campaign management, software development and data management. He said annualized revenue per employee has risen above $1 million, compared with about $800,000 a year ago, which he attributed to AI-driven efficiency and automation. Digital Turbine is also combining first-party data with its DTiQ and IgniteGraph capabilities to improve advertiser outcomes, according to Stone. The company’s growth priorities include data and AI, its brand advertising business, the expansion of its Ignite platform and alternative application distribution. Stone said the company has nearly 3 billion devices and more than 80,000 apps using its advertising technology. On alternative app distribution, Stone said the outcome of the Epic Games litigation involving Google and Google-related rulings in the European Union could create opportunities as app stores become more open to alternative distribution. He said publishers are seeking greater control over distribution as AI affects web traffic and app discovery. Stone also said the company is using Ignite as a software distribution tool beyond its existing SingleTap, out-of-the-box setup and notification products. He cited work with a U.S. AI-focused partner to distribute AI agents to devices and pointed to potential applications in e-commerce, lock screens and content distribution. Digital Turbine generated $17.9 million in cash from operations during the quarter, more than double the $8.8 million generated a year earlier. Non-GAAP free cash flow was $11.3 million, an improvement of roughly $10 million from the prior-year period. The company ended the quarter with $43.2 million in cash and cash equivalents, up more than $5 million from the start of the fiscal year. Total debt, net of debt issuance costs and discounts, declined by more than $8 million during the quarter to approximately $352.9 million. Kinsell said the company amended its financing agreement to secure more favorable terms. Following the quarter, the applicable margin on its largest loan tranche was reduced by 50 basis points after the company reached specified leverage thresholds. Stone said Digital Turbine’s net leverage ratio improved to 2.5 turns from more than five turns in the year-ago June quarter. Management expects further balance-sheet improvement during the fiscal year. The company raised its fiscal 2027 outlook, now forecasting: Revenue of $650 million to $670 million, up from prior guidance of $630 million to $650 million. Adjusted EBITDA of $145 million to $155 million, up from prior guidance of $135 million to $145 million. Stone said the revised forecast reflects momentum in AI and data products, the company’s advertising marketplace, international ODS operations, its Ignite platform and alternative app-distribution opportunities. He added that Digital Turbine’s largely digital business and customer mix, which is focused on digital goods and services, make it relatively insulated from certain inflation, tariff and geopolitical pressures, while acknowledging that no business is fully insulated from macroeconomic conditions. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Digital Turbine Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

First Quarter Net Revenue Totaled $166.0 Million, Representing Year-over-Year Growth of 27% First Quarter GAAP Net Loss of $3.2 Million and GAAP EPS of $(0.03); First Quarter Non-GAAP Adjusted Net Income1 of $24.1 Million and Non-GAAP Adjusted EPS1 of $0.19 First Quarter Non-GAAP Adjusted EBITDA2 Totaled $42.5 Million, Representing Year-over-Year Growth of 69% AUSTIN, Texas, Aug. 4, 2026 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal first quarter ended June 30, 2026. Recent Financial Highlights: Fiscal first quarter of 2027 revenue totaled $166.0 million, representing an increase of 27% year-over-year as compared to the fiscal first quarter of 2026. GAAP net loss for the fiscal first quarter of 2027 was $3.2 million, or $(0.03) per share. Non-GAAP adjusted net income1 for the fiscal first quarter of 2027 was $24.1 million, or $0.19 per share, as compared to non-GAAP adjusted net income1 of $7.0 million, or $0.06 per share, in the fiscal first quarter of 2026. Non-GAAP adjusted EBITDA2 for the fiscal first quarter of 2027 was $42.5 million, representing an increase of 69% year-over-year as compared to non-GAAP adjusted EBITDA2 of $25.1 million in the fiscal first quarter of 2026. Non-GAAP free cash flow3 totaled $11.3 million in the fiscal first quarter of 2027. "Our strong first quarter results reflect an encouraging start to the new fiscal year and position the Company for sustained success moving forward," said Bill Stone, CEO. "Our execution continues to improve, thereby creating and supporting multiple growth opportunities. In particular, I was pleased with the performance of our App Growth Platform segment, which delivered 56% year-over-year growth, powered by our brand business on the demand side and our DT Exchange on the supply side. One key tailwind helping to drive this improved performance is our ability to successfully leverage AI partnerships and tools to optimize the value of our vast data sources as a means of driving better results for platform partners and advertisers, while simultaneously delivering a more relevant, enriched end-user experience. This AI-enhanced evolution has, in turn, enabled us to attract valuable new partners and advertisers to the platform in search of improved yields and greater returns on advertising spend. My confidence in the Digital Turbine team, platform, market position, and vision energize me for the fast-expanding spectrum of opportunities that lie ahead." Fiscal 2027 First Quarter Financial Results Total revenue for the first quarter of fiscal 2027 was $166.0 million, representing year-over-year growth of 27% as compared to total revenue of $130.9 million for the first quarter of fiscal 2026. Total On Device Solutions net revenue before intercompany eliminations was $110.0 million, representing year-over-year growth of 15%. Total App Growth Platform net revenue before intercompany eliminations was $56.6 million, representing year-over year growth of 56%. GAAP net loss for the first quarter of fiscal 2027 was $3.2 million, or $(0.03) per share, as compared to GAAP net loss for the first quarter of fiscal 2026 of $14.1 million, or ($0.13) per share. Non-GAAP adjusted net income1 for the first quarter of fiscal 2027 was $24.1 million, or $0.19 per share, as compared to non-GAAP adjusted net income1 of $7.0 million, or $0.06 per share, in the first quarter of fiscal 2026. Non-GAAP adjusted EBITDA2 for the first quarter of fiscal 2027 was $42.5 million, representing year-over-year growth of 69% as compared to non-GAAP adjusted EBITDA2 for the first quarter of fiscal 2026 of $25.1 million. Business Outlook Based on information available as of August 4, 2026, the Company currently expects the following for fiscal year 2027: Revenue of between $650 million and $670 million Non-GAAP adjusted EBITDA2 of between $145 million and $155 million It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company's stock price, or other items that are difficult to predict with precision. About Digital Turbine, Inc. Digital Turbine empowers superior mobile consumer experiences and results for the world's leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners' abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com. Conference Call Management will host a conference call and webcast today at 4:30pm ET/1:30p PT to discuss its fiscal 2027 first quarter results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https://app.webinar.net/BNq75NKRvay. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 4141152. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine's website. The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website. For those unable to join the live call, a playback will be available through August 11th, 2026. The replay can be accessed by dialing 855-669-9658 in the United States or 412-317-0088 from international locations, passcode 6108249. An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website. Use of Non-GAAP Financial Measures To supplement the Company's consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share ("EPS"), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below. Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management's internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. 1Non-GAAP adjusted net income (loss) and EPS are defined as GAAP net income (loss) and EPS adjusted to exclude the effect of the following, if any: stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent consideration, contract settlement fees, impairment of goodwill, tax adjustments, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs and exit and duration fees, unrealized (gain)/loss on derivatives, and other non-cash expense adjustments. The Company added (gain)/loss on extinguishment of debt, the amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific August 29, 2025 debt refinance transaction and related issuance of warrants. The Company also excludes other non-cash expense adjustments as described in footnote 3 to the reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income below, as these items are one-time non-cash adjustments that are non-recurring in nature. Readers are cautioned that non-GAAP adjusted net income (loss) and EPS should not be construed as an alternative to comparable GAAP net income (loss) figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP. 2Non-GAAP adjusted EBITDA is calculated as GAAP net income (loss) excluding the following cash and non-cash expenses, if any: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent consideration, impairment of goodwill, severance costs, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs, and exit and duration fees, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment of debt, the amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific August 29, 2025 debt refinance transaction and related issuance of warrants. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP. 3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding the following, if any: transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP. 4Non-GAAP gross profit is defined as GAAP income (loss) from operations adjusted to exclude the effect of the following, if any: product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, impairment of goodwill and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP. Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company's financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business. Forward-Looking Statements This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include: Risks Specific to our Business We may not achieve the expected benefits of our transformation program and similar measures we take in the future, and our efforts may adversely affect our business. We have a history of net losses. We have a limited operating history for our current portfolio of assets. Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial, and economic risks as a result of our international operations. Our financial results could vary significantly from quarter-to-quarter and are difficult to predict. A significant portion of our revenue is derived from a limited number of wireless carriers and customers. The development and use of artificial intelligence ("AI") in our business, combined with an uncertain regulatory environment, may adversely affect our business, reputation, financial condition, and results of operations. System security risks, data protection breaches, cyber-attacks, and systems integration issues could disrupt our business. Our business may involve the use, transmission, and storage of confidential information and personally identifiable information, and the failure to properly safeguard such information could result in significant reputational harm and monetary damages. The effects of the current and any future general downturns in the United States ("U.S"). and the global economy, including financial market disruptions. Our products, services, and systems rely on software that is highly technical, and if it contains errors or viruses, our business could be adversely affected. Our business and reputation could be impacted by information technology system failures and network disruptions Our business may suffer if we are unable to hire and retain key talent. Our corporate culture has contributed to our success, and if we cannot maintain this culture, we could lose the innovation, creativity, passion, and teamwork that we believe contribute to our success and our business may be harmed. If we make future acquisitions, this could require significant management attention and disrupt our business. Adverse developments affecting the financial services industry, including events involving liquidity, defaults or non-performance, could adversely affect our business, financial condition, and results of operations. Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks. Litigation may harm our business. Risks Related to the Mobile Advertising Industry The mobile advertising business is an intensely competitive industry, and we may not be able to compete successfully. The markets for our products and services are rapidly evolving and may decline or experience limited growth. Our business is dependent on the continued growth in usage of smartphones and other mobile connected devices. Wireless technologies are changing rapidly, and we may not be successful in working with these new technologies. The complexity of and incompatibilities among mobile devices may require us to use additional resources for the development of our products and services. If wireless subscribers do not continue to use their mobile devices to access mobile content and other applications, our business growth and future revenue may be adversely affected. A shift of technology platform by wireless carriers and mobile device manufacturers could lengthen the development period for our offerings, increase our costs, and cause our offerings to be published later than anticipated. Actual or perceived security vulnerabilities in devices or wireless networks could adversely affect our revenue. We may be subject to legal liability associated with providing mobile and online services. Risks of public health issues, such as a major epidemic or pandemic. Risk related to geopolitical conditions and the global economy, including conflicts, financial markets, inflation, global supply chain, and tariffs. Risk related to the geopolitical relationship between the U.S. and China or changes in China's economic and regulatory landscape, including recent tariff increases and trade tensions. Risks Related to Laws and Regulations We are subject to rapidly changing and increasingly stringent laws, regulations and contractual requirements related to privacy, data security, and protection of children. We are subject to anti-bribery, anti-corruption, and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation. We are subject to governmental economic sanction requirements and export and import controls that could impair our ability to compete in international markets. Our ability to use our net operating losses, credits, and certain other tax attributes to offset future taxable income or taxes may be subject to certain limitations. Regulatory requirements pertaining to the marketing, advertising, and promotion of our products and services. Government regulation of our marketing methods could restrict or prevent our ability to adequately advertise and promote our content, products, and services available in certain jurisdictions. Risks Related to Our Intellectual Property and Potential Liability Third parties may obtain and improperly use our intellectual property; and if so, our competitive position may be adversely affected, particularly if we do not, or are unable to, adequately protect our intellectual property rights. Third parties may sue us for intellectual property infringement, which may prevent or limit our use of the intellectual property and disrupt our business and could require us to pay significant damage awards. Our platform contains open source software. Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, damages caused by malicious software, and other losses. Risks Relating to Our Common Stock and Capital Structure We have significant indebtedness, which could limit our financial flexibility. To service our debt and fund our other obligations and capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control. The market price of our common stock is likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the current price or the price at which you purchased your shares. Risk of not being able to raise capital to grow our business. Risk to trading volume of lack of securities or industry analysts research coverage. If our goodwill becomes impaired, we may be required to record significant charges to earnings. A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in material misstatements in our financial statements. Maintaining and improving financial controls and being a public company may strain resources. Anti-takeover provisions in our charter documents could make an acquisition of our company more difficult. Our bylaws designate Delaware as the exclusive forum for certain disputes. Other risks described in the risk factors in Item 1A of Annual Report under the heading "Risk Factors." You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Investor Relations Contact:Brian BartholomewDigital Turbine, [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-turbine-reports-strong-fiscal-2027-first-quarter-financial-results-and-raises-full-year-guidance-302842847.html

Digital Turbine APPS is set to release its first-quarter fiscal 2027 results on Aug. 4.The Zacks Consensus Estimate for APPS’ fiscal first-quarter revenues is pegged at $149.8 million, suggesting year-over-year growth of 14.41%. The consensus mark for earnings is pegged at 14 cents per share. Digital Turbine reported earnings of 5 cents per share in the year-ago quarter.Let’s see how things have shaped up for the upcoming earnings announcement. Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote Digital Turbine’s first-quarter fiscal 2027 results are expected to have benefited from continued momentum across both its On-Device Solutions (ODS) and App Growth Platform (AGP) businesses. The ODS business is likely to have benefited from expanding international partnerships and continued growth in revenue per device (RPD). Digital Turbine highlighted more than 20% growth in global devices during fiscal 2026, driven by international carriers and OEMs, while RPD increased more than 20% in both domestic and international markets. Recent carrier wins, including Orange, and expanding monetization across the Ignite platform are expected to have supported first-quarter top-line growth.The AGP segment is expected to have remained a key growth engine, supported by strong advertiser demand, higher pricing and improving fill rates. Brand advertising and DT Exchange (SSP) posted growth exceeding 50% in the fourth quarter of fiscal 2026, while broader SDK expansion, rising non-gaming inventory and increasing impressions enhanced supply. Continued integration of legacy platforms into a unified technology stack is also likely to have improved monetization and operating efficiency in the to-be-reported quarter.Digital Turbine’s growing use of first-party data, AI and machine learning is expected to have contributed meaningfully to first-quarter performance. The company has been leveraging its DTiQ AI platform and Ignite Graph to improve ad targeting, campaign effectiveness and advertiser return on investment. The company's expanding flywheel strategy is also likely to have supported results. With nearly three billion devices, more than 80,000 applications using its ad-tech platform and increasing cross-selling between demand and supply platforms, Digital Turbine is creating higher user acquisition and monetization opportunities. Growth in alternative app distribution through partnerships with major game developers and broader use of SingleTap technology may have further strengthened engagement during the fiscal first quarter.However, continued softness in U.S. device volumes may have remained a headwind for the ODS business, making Digital Turbine increasingly dependent on international markets for growth. APPS also continues to operate in a highly competitive mobile advertising environment where pricing, advertiser budgets and publisher relationships can fluctuate. The company faces stiff competition from the likes of AppLovin APP, Unity Software U and Magnite MGNI. Digital Turbine shares have surged 63.8% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 6.9%. The company’s shares have outperformed AppLovin, Unity Software and Magnite, YTD. Shares of Magnite have appreciated 19.5%, while AppLovin and Unity dropped 40% and 24.5%, respectively. Image Source: Zacks Investment Research The APPS stock is cheap, as its Value Score of B suggests that the stock is trading at a discount at this moment.In terms of the forward 12-month price/earnings, Digital Turbine is currently trading at 8.97X, lower than the sector’s 20.01X, AppLovin’s 21.47X, Unity’s 28.31X and Magnite’s 18.12X. Image Source: Zacks Investment Research Digital Turbine’s long-term growth is expected to be driven by continued expansion of its AI-powered advertising platform. The company’s investments in DTiQ, Ignite Graph and proprietary first-party data should improve targeting, monetization and advertiser returns while increasing pricing power across its ecosystem. APPS also expects AI adoption to accelerate app creation, increase time spent within applications and shift advertising budgets toward mobile apps, creating favorable industry tailwinds.International expansion remains another important growth driver. The company continues to add global carrier and OEM partners while extending the Ignite platform beyond app distribution into notifications, AI agent deployment, e-commerce and additional on-device services. Growing adoption of alternative app stores, expanding brand advertising, the flywheel between supply and demand, and increasing cross-platform monetization opportunities should further support sustainable long-term revenue and EBITDA growth.However, Digital Turbine faces stiff competition from the likes of AppLovin, Unity and Magnite. AppLovin poses a significant competitive threat to Digital Turbine by leveraging its AI-powered advertising platform to improve advertiser returns and user acquisition efficiency. AppLovin’s AXON AI engine has already established itself as one of the leading machine-learning platforms for mobile advertising, attracting substantial advertiser spending. Unity benefits from rapid adoption of its AI-powered Vector advertising platform, with strategic Grow revenues increasing sharply as improved personalization, runtime data, and higher advertiser returns drove customer spending. Magnite is strengthening its competitive position through continued leadership in programmatic advertising and AI-driven publisher monetization. Digital Turbine enters its first-quarter fiscal 2027 earnings release with expectations of solid year-over-year revenue and earnings growth, supported by continued momentum across its ODS and AGP businesses, expanding AI capabilities and international partnerships. While the company’s long-term growth strategy remains centered on AI-driven advertising, first-party data and global expansion, persistent weakness in U.S. device volumes and intense competition from AppLovin, Unity and Magnite could weigh on execution. Investors will likely focus on management's commentary regarding monetization trends, international growth and the sustainability of AI-led initiatives when evaluating the company's outlook.Digital Turbine currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Digital Turbine, Inc. (APPS) : Free Stock Analysis Report AppLovin Corporation (APP) : Free Stock Analysis Report Magnite, Inc. (MGNI) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research