Digital Turbine Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.23%.
Did APPS Beat Earnings? Q4 2025 Results
Digital Turbine delivered a standout fiscal fourth quarter, posting non-GAAP earnings of $0.10 per diluted share against a consensus estimate of just $0.04, a 150% beat, while revenue of $119.15 million edged past the $116.64 million analyst target by 2.16%. The headline revenue figure reflected a year-over-year decline of 11.5% on a reported basis, though the company's filing pointed to 6% growth when measured against the prior-year quarter, driven by an 11% surge in the On Device Solutions segment to $86.83 million. Perhaps more telling was the 66% jump in non-GAAP adjusted EBITDA to $20.46 million, a product of the company's ongoing transformation program that pushed gross margins to 48% from 46% a year ago. Operating cash flow swung to a positive $11.51 million from negative $11.76 million in the year-ago period. Looking ahead, management guided fiscal 2026 revenue of $515 million to $525 million, with AI-driven first-party data optimization and alternative app distribution opportunities cited as key growth vectors, themes resonating broadly across <a href="https://247wallst.com/investing/2025/05/07/applovin-nasdaq-app-1st-quarter-earnings-all-day-live-coverage/">the mobile advertising sector</a>.
- On Device Solutions segment revenue grew 11% year-over-year
- Non-GAAP adjusted EBITDA grew 66% year-over-year in Q4
- Non-GAAP gross profit margin expanded to 48% from 46%
- Strong advertiser and partner demand
- Profit margin expansion from business transformation program
“I am extremely proud of the improved execution by our team over the past year. These improvements are now paying dividends, as we had solid year-over-year growth on both the top and bottom lines, including EBITDA growth of 66% in our fiscal fourth quarter. The combination of strong advertiser and partner demand, along with profit margin expansion stemming from our transformation program, is enabling us to issue guidance today for continued top- and bottom-line growth in fiscal 2026. More strategically, meaningful progress on our abilities to effectively utilize AI and Machine Learning in order to optimize the value of our first-party data, and the emergence of new opportunities for Alternative Apps distribution, have us feeling optimistic that we can continue to build on our current momentum.”
Digital Turbine CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, Digital Turbine expects revenue of between $515 million and $525 million, and non-GAAP adjusted EBITDA of between $85 million and $90 million. Management cited strong advertiser and partner demand, profit margin expansion from the transformation program, AI/ML optimization of first-party data, and emerging alternative app distribution opportunities as drivers of expected continued growth.
APPS YoY Financials
APPS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.