Digital Turbine (NASDAQ:APPS) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Digital Turbine (NASDAQ:APPS) announced its quarterly earnings results on Tuesday. The software maker reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.07, FiscalAI reports. Digital Turbine had a positive return on equity of 28.73% and a negative net margin of 6.68%.The firm had revenue of $142.55 million during the quarter, compared to the consensus estimate of $133.23 million.

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

• Digital Turbine reported a strong fiscal 2026, with revenue up 15% to $565 million and adjusted EBITDA up 69%, showing meaningful operating leverage as the business scaled.
• The company’s App Growth Platform was a standout, growing 57% year over year in the quarter and over 20% for the full year, helped by stronger advertiser demand, better targeting, and AI-driven performance improvements.
• Management said AI is becoming a major tailwind, both by improving internal efficiency and by helping customers achieve better returns; they noted they added over $70 million in revenue over the past year while using 4% less headcount.
• The company issued fiscal 2027 guidance for another year of double-digit growth, with revenue expected at $630 million-$650 million and adjusted EBITDA at $135 million-$145 million.
• Digital Turbine ended the year with $38 million in cash and $361 million of net debt, down from $409 million at the start of the year, and said it plans to keep using free cash flow to delever further. CFO Stephen Lasher also announced he will step down, with an interim CFO named.

Digital Turbine Stock Up 38.9%

Shares of Digital Turbine stock opened at $6.68 on Thursday. The business has a 50-day moving average of $3.61 and a 200-day moving average of $4.36. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.10 and a quick ratio of 1.10. The company has a market capitalization of $800.93 million, a PE ratio of -18.56, a P/E/G ratio of 0.19 and a beta of 2.40. Digital Turbine has a 1-year low of $2.74 and a 1-year high of $8.28.

Analyst Ratings Changes

Several analysts recently issued reports on the company. Bank of America upgraded Digital Turbine from a “neutral” rating to a “buy” rating and set a $7.50 price target for the company in a report on Wednesday. Zacks Research downgraded Digital Turbine from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 6th. Wall Street Zen upgraded Digital Turbine from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Digital Turbine in a research note on Friday, March 27th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $8.75.

Digital Turbine News Roundup

Here are the key news stories impacting Digital Turbine this week:

• Positive Sentiment: Digital Turbine beat Q4 estimates, reporting EPS of $0.16 versus $0.09 expected and revenue of $142.6 million versus $133.2 million estimated, with revenue up 20% year over year and adjusted EBITDA up 53%. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Management guided fiscal 2027 revenue to $630 million-$650 million, above consensus, signaling continued double-digit growth and supporting the recent surge in the stock. Digital Turbine outlines fiscal 2027 revenue of $630M-$650M with focus on double-digit growth
• Positive Sentiment: Bank of America upgraded APPS from neutral to buy and set a $7.50 price target, adding to bullish sentiment around the name. APPS stock soars 53%, on track for best single-day gains in 11 months — why did BofA turn bullish on Digital Turbine?
• Positive Sentiment: The company also highlighted new AI-related partnerships and a European distribution deal, which investors are viewing as potential growth drivers for its mobile engagement platform. Digital Turbine (APPS) Is Up 15.3% After New AI Deals And 2027 Revenue Outlook – What’s Changed
• Neutral Sentiment: Several earnings-call transcript and summary articles reinforced the same core message: stronger revenue growth, better profitability, and upbeat guidance. Digital Turbine APPS Q4 2026 Earnings Transcript
• Neutral Sentiment: One cautionary note is that a Seeking Alpha downgrade pointed to weak margins, high debt, and free-cash-flow challenges, suggesting the rally could cool if execution slips. Digital Turbine: Don’t Look Under The Hood (Rating Downgrade)

Institutional Trading of Digital Turbine

Large investors have recently modified their holdings of the business. Schonfeld Strategic Advisors LLC acquired a new position in Digital Turbine in the fourth quarter worth about $75,000. DRW Securities LLC acquired a new position in Digital Turbine in the fourth quarter worth about $66,000. Cerity Partners LLC grew its stake in Digital Turbine by 39.0% in the fourth quarter. Cerity Partners LLC now owns 16,651 shares of the software maker’s stock worth $83,000 after purchasing an additional 4,673 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new position in Digital Turbine in the third quarter worth about $71,000. Finally, State of Wyoming acquired a new position in Digital Turbine in the second quarter worth about $72,000. 63.66% of the stock is currently owned by institutional investors and hedge funds.

Digital Turbine Company Profile

Digital Turbine, Inc (NASDAQ: APPS) is a mobile technology company that streamlines content delivery and app advertising across connected devices. Its platform enables carriers, OEMs, app developers and advertisers to engage users through personalized app recommendations, in-app promotions and turnkey monetization solutions. By integrating software directly on smartphones and tablets, Digital Turbine simplifies the user journey from discovery to installation without requiring additional downloads or redirects through traditional app stores.

The company’s flagship Ignite Platform offers end-to-end campaign management, combining demand-side advertising, real-time analytics and automated content fulfillment.