Companies /Technology

Digital Turbine Inc

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

Q1 2026 Earnings

Reported Aug 5, 2025, 4:07pm ET · SEC source
$0.05
Miss −37.50%
EPS · est. $0.08
$130.9M
Beat +7.37%
Revenue · est. $121.9M
−8.8%
Trailing market
APPS vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−30%−20%−10%0Aug 5Aug 6report 4:07pm ETearnings+0.8%−27.5%
−30%−20%−10%0Aug 5Aug 6earnings+0.8%−27.5%
APPS −27.5%S&P 500 +0.8%
−20%0Aug 5Aug 6report 4:07pm ETearnings+1.3%−27.5%
−20%0Aug 5Aug 6earnings+1.3%−27.5%
APPS −27.5%NASDAQ +1.3%
−20%−10%0+10%Aug 4Aug 13report 4:07pm ETearnings+2.7%−13.7%
−20%−10%0+10%Aug 4Aug 13earnings+2.7%−13.7%
APPS −13.7%S&P 500 +2.7%
−20%−10%0+10%Aug 4Aug 13report 4:07pm ETearnings+3.7%−13.7%
−20%−10%0+10%Aug 4Aug 13earnings+3.7%−13.7%
APPS −13.7%NASDAQ +3.7%
−14.52%
Day of report
+1.08%
Next session
−5.59%
One week
−6.24%
30 days

S&P 500 over the same 30 days: +2.54%.

Did APPS Beat Earnings? Q1 2026 Results

Digital Turbine delivered a mixed fiscal first quarter for 2026, posting a revenue beat that masked a meaningful earnings shortfall as shares fell sharply in the session following the report. Revenue climbed 11.0% year-over-year to $130.93 million, clearing the $121.94 million consensus by 7.37%, while non-GAAP adjusted EPS of $0.05 fell well short of the $0.08 estimate, a 37.50% miss. The growth story was concentrated in the On Device Solutions segment, which generated $95.45 million in revenue, up 18% year-over-year, as demand for the Ignite platform accelerated, while the App Growth Platform contracted 5% to $36.29 million. Beneath the headline numbers, the picture improved considerably; non-GAAP adjusted EBITDA surged 73% to $25.14 million, and the GAAP net loss narrowed to $14.10 million from $25.16 million a year earlier, reflecting tighter operating cost discipline. Bank of America upgraded the stock after the results, viewing the underlying fundamentals more favorably than the market's initial reaction suggested. Looking ahead, management raised its full-year fiscal 2026 revenue outlook to $525 million to $535 million, with adjusted EBITDA guided to $90 million to $95 million.

Key Takeaways
  • Strong demand for Ignite platform
  • Modestly improved device sales
  • Solid execution across the organization
  • On Device Solutions revenue growth of 18% year-over-year
  • Non-GAAP adjusted EBITDA increased 73% year-over-year to $25.1 million

“I was pleased to see our business momentum continue to accelerate in the first quarter. Double-digit revenue growth year-over-year and a corresponding 73% increase in EBITDA during the quarter enable us to confidently raise our outlook for the fiscal year. Strong demand for our Ignite platform, modestly improved device sales, and solid execution across the organization are the key drivers for the improved results. Looking forward, we continue to be excited about our ability to leverage our unique first-party datasets to drive greater performance across our AI/ML platform, the favorable macro set-up for alternative apps distribution, and our focused investment in helping brands to effectively utilize our platform footprint of more than two billion devices worldwide. We believe these will be primary catalysts of future growth.”

Digital Turbine CEO, on the earnings call

Forward Guidance & Outlook

Digital Turbine raised its fiscal year 2026 outlook, now expecting revenue of $525 million to $535 million and non-GAAP adjusted EBITDA of $90 million to $95 million. The company cited strong demand for its Ignite platform, favorable macro dynamics for alternative app distribution, AI/ML platform leverage on first-party datasets, and focused investment in brand engagement across its 2+ billion device footprint as primary growth catalysts.

APPS YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$50.0M$100.0M$118.0M$130.9MRevenue$54.4M$62.0MGross Profit$-2,725,253$-4,661,000Operating Income$-9,799,208$-14,104,000Net Income
$0$50.0M$100.0MRevenueGross ProfitOperating IncomeNet Income

APPS Revenue by Segment

On Device Solutions$95.4M+18.0%
App Growth Platform$36.3M−5.0%

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