Digital Turbine (NASDAQ:APPS) Shares Gap Up Following Better-Than-Expected Earnings

Digital Turbine, Inc. (NASDAQ:APPS)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $4.81, but opened at $6.49. Digital Turbine shares last traded at $6.93, with a volume of 18,862,389 shares changing hands.

The software maker reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.07. Digital Turbine had a negative net margin of 8.93% and a positive return on equity of 21.26%. The business had revenue of $142.55 million for the quarter, compared to analyst estimates of $133.23 million.

Digital Turbine News Roundup

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

• Positive Sentiment: Digital Turbine beat Q4 expectations with adjusted EPS of $0.16 versus $0.09 expected, while revenue of $142.55 million also topped estimates. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: The company issued fiscal 2027 revenue guidance of $630 million to $650 million, above the market’s expectation, signaling confidence in continued growth. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Bank of America upgraded Digital Turbine from neutral to buy and set a $7.50 price target, which added to the bullish sentiment around the stock. Digital Turbine, Inc. (NASDAQ:APPS) Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Management highlighted 20% year-over-year Q4 revenue growth and 53% growth in adjusted EBITDA, reinforcing the view that profitability is improving alongside sales. Digital Turbine Stock Soars After Q4 Double Beat, Strong FY27 Revenue Outlook
• Neutral Sentiment: The company also reported full-year fiscal 2026 revenue growth of 15% and adjusted EBITDA growth of 69%, showing solid operational momentum, though GAAP net losses remain. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Zacks Research downgraded Digital Turbine from a “strong-buy” rating to a “hold” rating in a report on Monday, April 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Digital Turbine in a research report on Friday, March 27th. 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 research note on Wednesday. Finally, Wall Street Zen raised Digital Turbine from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $8.75.

Hedge Funds Weigh In On Digital Turbine

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in shares of Digital Turbine by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 9,101,779 shares of the software maker’s stock valued at $45,509,000 after acquiring an additional 29,540 shares in the last quarter. Granahan Investment Management LLC increased its holdings in Digital Turbine by 12.0% in the 1st quarter. Granahan Investment Management LLC now owns 7,112,351 shares of the software maker’s stock valued at $20,484,000 after purchasing an additional 762,888 shares in the last quarter. AIGH Capital Management LLC purchased a new position in Digital Turbine in the first quarter valued at about $14,100,000. Bank of America Corp DE raised its position in Digital Turbine by 17.4% in the first quarter. Bank of America Corp DE now owns 3,619,171 shares of the software maker’s stock valued at $10,423,000 after purchasing an additional 535,169 shares during the period. Finally, Geode Capital Management LLC raised its position in Digital Turbine by 4.6% in the fourth quarter. Geode Capital Management LLC now owns 2,528,772 shares of the software maker’s stock valued at $12,646,000 after purchasing an additional 110,871 shares during the period. Hedge funds and other institutional investors own 63.66% of the company’s stock.

Digital Turbine Stock Up 41.9%

The firm has a 50-day simple moving average of $3.55 and a 200 day simple moving average of $4.36. The company has a market capitalization of $818.32 million, a PE ratio of -14.54, a price-to-earnings-growth ratio of 0.18 and a beta of 2.40. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.10 and a quick ratio of 1.10.

About Digital Turbine

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.