Digital Turbine Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.15%.
Did APPS Beat Earnings? Q3 2026 Results
Digital Turbine delivered a standout fiscal third quarter, posting adjusted EPS of $0.18 against a consensus estimate of $0.12, a beat of 56.52%, while revenue of $151.40 million grew 12.4% year-over-year and topped the $145.72 million estimate by 3.89%. The headline story was a sharp operational turnaround: total costs and operating expenses fell to $129.75 million from $147.39 million a year ago, driving operating income to $21.65 million compared to an operating loss of $12.75 million in the prior-year period, and pushing the company to GAAP net income of $5.11 million versus a net loss of $23.13 million twelve months earlier. Non-GAAP adjusted EBITDA rose 76% to $38.75 million, with non-GAAP gross margin expanding to 49% from 44%. Both segments contributed, with On Device Solutions generating $99.56 million and App Growth Platform adding $52.62 million, up 19% year-over-year. Despite the strong print, shares faced pressure amid investor concerns around dilution following an at-the-market equity offering. Looking ahead, Digital Turbine raised its full-year fiscal 2026 revenue outlook to $553 million to $558 million, with adjusted EBITDA guided to $114 million to $117 million.
- Strong demand from mobile app publishers and advertisers
- Expanding global supply
- Significant operating expense reductions from prior transformation activities
- Non-GAAP gross profit margin expansion to 49% from 44% year-over-year
- App Growth Platform revenue growth of 19% year-over-year
“Our December quarter results reflected a continuance of our positive business momentum. I was particularly pleased with the breadth and diversity of our results, which were driven by strong demand, expanding global supply, and great execution by our team. Collectively, it enabled us to once again deliver upside results and raise our full-year fiscal 2026 outlook. The market opportunity in front of us is expanding quickly, as mobile app publishers and advertisers look to capitalize on newly available ways to promote app usage and profitability. Provided that we continue to execute and align our resources effectively to facilitate the evolving demand trends, we are well positioned to capitalize on the wealth of opportunities that lie ahead.”
Digital Turbine CEO, on the earnings call
Forward Guidance & Outlook
Digital Turbine raised its full-year fiscal 2026 guidance, now expecting revenue of $553 million to $558 million and non-GAAP adjusted EBITDA of $114 million to $117 million. Management cited expanding market opportunity as mobile app publishers and advertisers look to capitalize on newly available ways to promote app usage and profitability.
APPS YoY Financials
APPS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.