Companies /Technology

Digital Turbine Inc

NASDAQ: APPS Software - Application
$11.80
▲ $0.74 (+6.69%) today
Markets closed · 4:56pm ET

Q2 2025 Earnings

Reported Nov 6, 2024, 5:19pm ET · SEC source
$0.05
Miss −16.67%
EPS · est. $0.06
$118.7M
Miss −5.66%
Revenue · est. $125.9M
−20.2%
Trailing market
APPS vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−40%−20%0Nov 6Nov 7report 5:19pm ETearnings+0.7%−45.9%
−40%−20%0Nov 6Nov 7earnings+0.7%−45.9%
APPS −45.9%S&P 500 +0.7%
−40%−20%0Nov 6Nov 7report 5:19pm ETearnings+1.5%−45.9%
−40%−20%0Nov 6Nov 7earnings+1.5%−45.9%
APPS −45.9%NASDAQ +1.5%
0+40%+80%Nov 5Nov 14report 5:19pm ETearnings+0.2%−24.9%
0+40%+80%Nov 5Nov 14earnings+0.2%−24.9%
APPS −24.9%S&P 500 +0.2%
0+40%+80%Nov 5Nov 14report 5:19pm ETearnings+0.4%−24.9%
0+40%+80%Nov 5Nov 14earnings+0.4%−24.9%
APPS −24.9%NASDAQ +0.4%
−44.75%
Day of report
−18.44%
Next session
−21.79%
One week
−18.99%
30 days

S&P 500 over the same 30 days: +1.21%.

Did APPS Beat Earnings? Q2 2025 Results

Digital Turbine delivered a disappointing fiscal second quarter, missing on both top and bottom lines as legacy business headwinds weighed on results. Revenue came in at $118.73 million, falling short of the $125.85 million consensus by 5.66% and representing only a modest 0.6% year-over-year gain when measured against adjusted comparisons, while non-GAAP adjusted EPS of $0.05 trailed the $0.06 estimate by 16.67%. The shortfall was driven in part by broad segment weakness, with On Device Solutions revenue sliding 17% year-over-year to $82.41 million and App Growth Platform revenue dropping 19% to $37.35 million. Non-GAAP adjusted EBITDA fell 45% to $15.31 million, and operating cash flow swung to a consumption of $8.72 million from generation of $27.45 million a year ago. In response, management initiated a transformation program targeting more than $25 million in annual cost savings and reduced its full-year revenue outlook to $475 million to $485 million, while still projecting a return to year-over-year growth by the March quarter.

Key Takeaways
  • Second consecutive quarter of sequential revenue growth
  • Non-GAAP adjusted EBITDA increased 6% sequentially
  • Revenue declined 17% year-over-year due to headwinds in legacy businesses

“The September quarter results marked our second consecutive quarter of sequential growth. While we anticipate continued sequential growth in the current December quarter and a return to year-over-year growth in the March quarter, our outlook for the remainder of fiscal 2025 has been reduced as a result of more significant anticipated headwinds in some of our legacy businesses.”

Digital Turbine CEO, on the earnings call

Forward Guidance & Outlook

For fiscal year 2025, Digital Turbine expects revenue of $475 million to $485 million and non-GAAP adjusted EBITDA of $65 million to $75 million. The company anticipates continued sequential growth in the December quarter and a return to year-over-year growth in the March quarter, though the outlook was reduced due to more significant headwinds in legacy businesses. The transformation program is expected to yield more than $25 million in annual cost savings.

APPS YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$40.0M$80.0M$120.0M$118.0M$118.7MRevenue$-11,691,272$-13,542,000Operating Income$-24,817,243$-24,986,000Net Income
$0$40.0M$80.0M$120.0MRevenueOperating IncomeNet Income

APPS Revenue by Segment

On Device Solutions$82.4M−17.0%
App Growth Platform$37.3M−19.0%

Figures from SEC filings and company reports. Not investment advice.