Digital Turbine Announces Successful Completion of Debt Refinancing and Updates Annual Guidance

Rhea-AI Summary

Digital Turbine (NASDAQ:APPS) has successfully completed a new $430 million four-year term loan credit facility, refinancing its existing debt that was due to mature in August 2026. This strategic refinancing strengthens the company's financial position and provides extended runway for growth initiatives.

Additionally, following strong Q1 FY2026 performance, Digital Turbine has raised its fiscal year 2026 guidance. The company now expects revenue between $530-535 million (up from $525-535 million) and Non-GAAP adjusted EBITDA of $92-95 million (up from $90-95 million), reflecting improved business momentum.

Positive

• Successful completion of $430 million four-year term loan facility provides extended financial runway
• Raised lower end of FY2026 revenue guidance to $530-535 million
• Increased lower end of FY2026 Non-GAAP adjusted EBITDA guidance to $92-95 million
• Strong Q1 FY2026 performance indicating business momentum

Negative

• Continued reliance on debt financing through $430 million term loan
• Unable to provide GAAP net income guidance due to stock-based compensation uncertainties

Insights

Financial Analyst

Digital Turbine successfully refinanced debt with a four-year $430M facility while raising its FY2026 guidance, indicating improving business momentum.

Digital Turbine has completed a strategic $430 million debt refinancing that extends its maturity timeline by four years, effectively addressing a major financial obligation that was set to mature in August 2026. This refinancing provides crucial breathing room for the company to execute its growth strategy without the immediate pressure of looming debt repayment.

The company's decision to raise the lower end of its fiscal 2026 guidance is particularly noteworthy. Revenue expectations are now $530-535 million (up from $525-535 million), while Non-GAAP Adjusted EBITDA projections stand at $92-95 million (previously $90-95 million). This upward revision, though modest, signals management's increased confidence in the company's performance trajectory following what they described as "strong first quarter results."

The refinancing comes at a critical time as Digital Turbine works to regain growth momentum. By securing this multi-year facility, the company has effectively derisked its near-term capital structure, allowing management to focus on operational execution rather than debt management. The CFO's emphasis on "improved execution and return to growth performance" suggests the company is turning a corner after facing challenges.

While specific interest terms for the new credit facility weren't disclosed, this refinancing represents a vote of confidence from lenders in Digital Turbine's business outlook. The company's ability to secure this financing, combined with the guidance increase, indicates the underlying business fundamentals may be stabilizing after a period of uncertainty. This financial restructuring provides the runway needed for Digital Turbine to invest in innovation and operational efficiency initiatives that could drive sustainable growth in its mobile platform business.

The company has secured a new four-year credit facility following strong fiscal first quarter results and the issuance of fiscal year 2026 annual guidance that underscores the business momentum and growth outlook.

AUSTIN, Texas, Sept. 2, 2025 /PRNewswire/ -- Digital Turbine, Inc., the leading platform powering premium mobile experiences through innovative technology, today announced the successful completion of a new four-year $430 million term loan credit facility. The refinancing extends the debt maturity timeline, providing the runway to continue accelerating the company's return to growth.

The new facility has been used to fully repay the company's prior credit facility, which was set to mature in August 2026. With this multi-year runway, Digital Turbine is positioned to execute on key strategic initiatives as it advances innovation across its platform, scales operational efficiencies, and continues to drive future growth by delivering premium mobile experiences for its global partners and consumers.

"We're pleased to have secured this four-year term loan credit facility, which allows us to fully address our upcoming debt maturity and continue to focus on our business strategy with discipline," said Steve Lasher, Chief Financial Officer of Digital Turbine. "This refinancing, coupled with our improved execution and return to growth performance, allow us to continue to execute on our path forward."

Fiscal Year 2026 Guidance Update

Following the company's strong first quarter performance and encouraged by the accelerating momentum of the business, the company is raising the lower end of its annual guidance range to revenue in the range of $530 million to $535 million and Non-GAAP adjusted EBITDA in the range of $92 million to $95 million for fiscal year 2026.

	Updated FY26 Guidance	Prior FY26 Guidance
Revenue	$530-535 million	$525-535 million
Non-GAAP Adjusted EBITDA*	$92-95 million	$90-95 million

It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company's stock price, or other items that are difficult to predict with precision.

*Non-GAAP Adjusted EBITDA is calculated as GAAP net income excluding the following cash and non-cash expenses: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent considerations, impairment of goodwill, and severance costs.

About Digital Turbine

Digital Turbine (NASDAQ: APPS) is the driving force behind superior mobile experiences for consumers and results for the world's leading mobile operators, advertisers and publishers. Our platform uniquely simplifies our partners' ability to drive end-to-end recognition, acquisition and monetization - connecting them to more consumers, in more ways, on more devices. Digital Turbine is headquartered in North America, with offices around the world. www.digitalturbine.com

Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:

Risks Specific to our Business

• Our transformation activities and reduction in force may not adequately reduce our operating costs or improve our operating margins or cash flows, may lead to additional workforce attrition and may cause operational disruptions.
• We have a history of net losses.
• We have a limited operating history for our current portfolio of assets.
• Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial and economic risks as a result of our international operations.
• Our financial results could vary significantly from quarter-to-quarter and are difficult to predict.
• A significant portion of our revenue is derived from a limited number of wireless carriers and customers.
• The risk of impairment of our goodwill.
• The effects of the current and any future general downturns in the U.S. and the global economy, including financial market disruptions.
• Our products, services and systems rely on software that is highly technical, and if it contains errors or viruses, our business could be adversely affected.
• Our business may involve the use, transmission and storage of confidential information and personally identifiable information, and the failure to properly safeguard such information could result in significant reputational harm and monetary damages.
• Our business and reputation could be impacted by information technology system failures and network disruptions
• System security risks and cyber-attacks could disrupt our internal operations or information technology services provided to customers.
• Our business and growth may suffer if we are unable to hire and retain key talent.
• Our corporate culture has contributed to our success, and if we cannot maintain this culture, we could lose the innovation, creativity, passion, and teamwork that we believe contribute to our success and our business may be harmed.
• If we make future acquisitions, this could require significant management attention and disrupt our business.
• Adverse effects of negative developments affecting the financial services industry, including events or concerns involving liquidity, defaults, or non-performance by financial institutions.
• Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks.
• Litigation may harm our business.

Risks Related to the Mobile Advertising Industry

• The mobile advertising business is an intensely competitive industry, and we may not be able to compete successfully.
• The markets for our products and services are rapidly evolving and may decline or experience limited growth.
• Our business is dependent on the continued growth in usage of smartphones and other mobile connected devices.
• Wireless technologies are changing rapidly, and we may not be successful in working with these new technologies.
• The complexity of and incompatibilities among mobile devices may require us to use additional resources for the development of our products and services.
• If wireless subscribers do not continue to use their mobile devices to access mobile content and other applications, our business growth and future revenue may be adversely affected.
• A shift of technology platform by wireless carriers and mobile device manufacturers could lengthen the development period for our offerings, increase our costs, and cause our offerings to be published later than anticipated.
• Actual or perceived security vulnerabilities in devices or wireless networks could adversely affect our revenue.
• We may be subject to legal liability associated with providing mobile and online services.
• Risks of public health issues, such as a major epidemic or pandemic.
• Risk related to geopolitical conditions and the global economy, including conflicts, financial markets, inflation, global supply chain, and tariffs.
• Risk related to the geopolitical relationship between the U.S. and China or changes in China's economic and regulatory landscape, including recent tariff increases and trade tensions.

Industry Regulatory Risks

• We are subject to rapidly changing and increasingly stringent laws, regulations and contractual requirements related to privacy, data security, and protection of children.
• We are subject to anti-corruption, import/export, government sanction, and similar laws, especially related to our international operations.
• Government regulation of our marketing methods could restrict or prevent our ability to adequately advertise and promote our content, products and services available in certain jurisdictions.
• Limitations may negatively affect our ability to use our net operating losses, credits, and certain other tax attributes to offset future taxable income.
• Regulatory requirements pertaining to the marketing, advertising, and promotion of our products and services.

Risks Related to Our Intellectual Property and Potential Liability

• Third parties may obtain and improperly use our intellectual property; and if so, our competitive position may be adversely affected, particularly if we do not, or are unable to, adequately protect our intellectual property rights
• Third parties may sue us for intellectual property infringement, which may prevent or limit our use of the intellectual property and disrupt our business and could require us to pay significant damage awards.
• Our platform contains open source software.
• Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, damages caused by malicious software, and other losses.

Risks Relating to Our Common Stock and Capital Structure

• We have secured and unsecured indebtedness, which could limit our financial flexibility.
• To service our debt and fund our other obligations and capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control.
• The market price of our common stock is likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the current price or the price at which you purchased your shares.
• Risk of not being able to raise capital to grow our business.
• Risk to trading volume of lack of securities or industry analysts research coverage.
• A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in material misstatements in our financial statements.
• Maintaining and improvising financial controls and being a public company may strain resources.
• Anti-takeover provisions in our charter documents could make an acquisition of our company more difficult.
• Our bylaws designate Delaware as the exclusive forum for certain disputes.
• Other risks described in the risk factors in Item 1A of our latest Annual Report on Form 10- K under the heading "Risk Factors" and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:
Brian Bartholomew
Digital Turbine
brian.bartholomew@digitalturbine.com

 

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SOURCE Digital Turbine, Inc.

FAQ

What is the size and term of Digital Turbine's (APPS) new credit facility?

Digital Turbine secured a $430 million four-year term loan credit facility, which replaces their previous facility that was set to mature in August 2026.

What is Digital Turbine's (APPS) revenue guidance for fiscal year 2026?

Digital Turbine raised its FY2026 revenue guidance to $530-535 million, up from the previous guidance of $525-535 million.

What is Digital Turbine's (APPS) adjusted EBITDA guidance for FY2026?

The company expects Non-GAAP adjusted EBITDA between $92-95 million for fiscal year 2026, raised from the previous guidance of $90-95 million.

Why did Digital Turbine (APPS) refinance its debt?

The refinancing extends Digital Turbine's debt maturity timeline, providing runway to continue accelerating growth and execute key strategic initiatives while advancing platform innovation.

Why can't Digital Turbine (APPS) provide GAAP net income guidance?

The company cannot reasonably estimate changes in stock-based compensation expense, which is directly impacted by stock price changes, and other items that are difficult to predict with precision.