Digital Turbine (NASDAQ:APPS) Issues Earnings Results

Digital Turbine (NASDAQ:APPS) released its quarterly earnings data on Monday. The software maker reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.01, FiscalAI reports. Digital Turbine had a negative net margin of 4.46% and a positive return on equity of 38.34%. The business had revenue of $178.68 million for the quarter, compared to analyst estimates of $166.75 million.

Here are the key takeaways from Digital Turbine’s conference call:

• Revenue guidance increased: Digital Turbine reported Q2 revenue of $178.7 million, up 27% year over year, and raised its fiscal 2027 revenue outlook by $20 million to $670 million–$690 million.
• Both business segments grew: On-Device Solutions revenue rose 20%, while App Growth Platform revenue increased 42%, including 45% growth in the brand business. Management attributed momentum to stronger advertiser outcomes, data and AI efforts, and expanded supply and demand.
• Profitability guidance was unchanged: The company maintained its fiscal-year adjusted EBITDA outlook of $145 million–$155 million despite raising revenue guidance, citing measured investment in AI and data and a mix shift toward businesses with different profitability profiles. Q2 non-GAAP gross margin declined to 43% from 47% a year earlier.
• Cash generation and leverage improved: First-half non-GAAP free cash flow was $21.8 million, versus $8.4 million a year earlier, and net leverage fell to 2.3 turns from more than 4.0 turns a year ago.

Digital Turbine Trading Up 8.9%

Shares of APPS traded up $0.92 during trading hours on Monday, hitting $11.30. 7,991,334 shares of the stock were exchanged, compared to its average volume of 3,808,197. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.20 and a quick ratio of 1.20. The business has a 50-day moving average of $10.59 and a 200-day moving average of $7.65. Digital Turbine has a fifty-two week low of $2.74 and a fifty-two week high of $15.34. The firm has a market capitalization of $1.37 billion, a P/E ratio of -43.46, a price-to-earnings-growth ratio of 0.53 and a beta of 3.01.

Analyst Upgrades and Downgrades

Several brokerages recently commented on APPS. TD Cowen restated a “hold” rating on shares of Digital Turbine in a report on Tuesday, September 29th. Weiss Ratings restated a “sell (e+)” rating on shares of Digital Turbine in a research note on Wednesday, September 2nd. Northland Securities began coverage on shares of Digital Turbine in a research report on Thursday, October 29th. They set an “outperform” rating and a $17.00 price objective for the company. Royal Bank Of Canada started coverage on shares of Digital Turbine in a research report on Thursday, October 1st. They issued an “outperform” rating and a $15.00 target price for the company. Finally, Craig Hallum reissued a “buy” rating and set a $18.00 price target on shares of Digital Turbine in a research report on Wednesday, August 5th. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Digital Turbine has an average rating of “Moderate Buy” and an average price target of $15.42.

Digital Turbine Company Profile

Digital Turbine, Inc (NASDAQ: APPS) is a mobile advertising and application distribution company that helps advertisers, mobile carriers, device manufacturers and application developers connect with smartphone users. Its platform is designed to support the discovery, distribution, promotion and monetization of mobile applications and digital content.

The company provides technology that can be integrated into mobile devices and operating systems, including tools for app recommendations, device setup and application installation.