Digital Turbine Q2 2027: Revenue Jumps 36.5%, Swings to Profit
As seen on the 24/7 Wall St. homepage on November 9, 2026.
The company swung to GAAP net income of $10.3 million from a $21.4 million loss a year ago, turning profitable as revenue grew 36.5%. Management guided fiscal 2027 revenue to $670 million to $690 million against a $1.4 billion market cap.
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Digital Turbine posted Q2 2027 revenue of $178.7 million, beating expectations and marking a 36.5% year-over-year increase. Adjusted EPS of $0.18 also beat expectations, extending the company's streak of topping earnings expectations to four consecutive quarters.
The company swung to profitability, recording GAAP net income of $10.3 million compared to a net loss of $21.4 million in the same quarter a year ago. Non-GAAP adjusted EBITDA rose 46% to $39.8 million, reflecting the operating leverage CEO Bill Stone described as an AI and data driven flywheel effect attracting greater partner adoption and advertiser investment.
Both business segments contributed to the growth. On Device Solutions, the larger of the two, grew 20%, while App Growth Platform expanded 42%. Free cash flow more than doubled year over year.
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Management guided fiscal 2027 revenue to a range of $670 million to $690 million, with non-GAAP adjusted EBITDA of $145 million to $155 million. At the time of the report the company carried a market cap of approximately $1.4 billion, so the revenue guidance implies the stock is trading at a relatively tight multiple against the full-year outlook.
Investors should note several risks flagged in the filing. The company disclosed a material weakness in internal controls and a prior-period revision tied to understated revenue share expense of $3.5 million in the June 2026 quarter. Total liabilities of $647.9 million remain substantial relative to shareholders equity of $196.9 million, and significant interest expense continues to weigh on GAAP results.
Mentioned: APPS