Digital Turbine Reports Fiscal 2026 Third Quarter Financial Results

Rhea-AI Summary

Digital Turbine (Nasdaq: APPS) reported fiscal Q3 2026 revenue of $151.4M, up 12% year-over-year, GAAP net income of $5.1M (EPS $0.03) and non-GAAP adjusted net income of $21.7M (EPS $0.18). Non-GAAP adjusted EBITDA rose to $38.8M (+76% YoY). The company raised fiscal 2026 guidance to $553M–$558M revenue and $114M–$117M non-GAAP adjusted EBITDA.

Positive

• Revenue +12% YoY to $151.4M in fiscal Q3 2026
• Non-GAAP adjusted EBITDA +76% YoY to $38.8M
• Raised FY2026 revenue guidance to $553M–$558M
• Raised FY2026 non-GAAP adjusted EBITDA guidance to $114M–$117M
• GAAP profitability restored with net income $5.1M vs prior-year loss

Negative

• GAAP EPS remains small at $0.03, reflecting modest GAAP profitability
• Company cannot provide GAAP net income outlook due to stock-based compensation variability

Market Reaction

+18.42% $5.85 3.5x vol

15m delay 13 alerts

+18.42% Since News

+15.0% Peak in 1 min

$5.85 Last Price

$4.71 $6.12 Day Range

+$86M Valuation Impact

$554M Market Cap

3.5x Rel. Volume

Following this news, APPS has gained 18.42%, reflecting a significant positive market reaction. Argus tracked a peak move of +15.0% during the session. Our momentum scanner has triggered 13 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $5.85. This price movement has added approximately $86M to the company's valuation. Trading volume is very high at 3.5x the average, suggesting strong buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q3 FY26 revenue: $151.4M Revenue growth YoY: 12% GAAP net income: $5.1M +5 more

8 metrics

Q3 FY26 revenue $151.4M Fiscal 2026 third quarter revenue, up 12% YoY vs fiscal Q3 2025

Revenue growth YoY 12% Fiscal 2026 third quarter vs fiscal 2025 third quarter

GAAP net income $5.1M Fiscal 2026 third quarter GAAP net income (vs $23.1M loss prior year)

Non-GAAP net income $21.7M Fiscal 2026 third quarter non-GAAP adjusted net income

Non-GAAP EPS $0.18 Fiscal 2026 third quarter non-GAAP adjusted EPS

Adjusted EBITDA $38.8M Fiscal 2026 third quarter non-GAAP adjusted EBITDA, up 76% YoY

Non-GAAP free cash flow $6.4M Fiscal 2026 third quarter non-GAAP free cash flow

FY26 revenue outlook $553–$558M Raised fiscal 2026 revenue guidance range as of February 3, 2026

Market Reality Check

Price: $4.94 Vol: Volume 4,139,138 is 1.63x...

high vol

$4.94 Last Close

Volume Volume 4,139,138 is 1.63x the 20-day average of 2,540,694, indicating elevated trading interest ahead of/around the earnings release. high

Technical Shares trade just below the 200-day MA, at $5.04 versus the 200-day MA of $5.07, near a longer-term equilibrium level.

Peers on Argus

APPS was down 3.45% while sector peers showed mixed moves: ALTS -1.75%, CRNC -3....

APPS was down 3.45% while sector peers showed mixed moves: ALTS -1.75%, CRNC -3.28%, but MITK +2.79%, HKD +3.05%, DSP +4.31%. With no peers in the momentum scanner and no same-day peer news, the move appears stock-specific rather than a coordinated sector reaction.

Previous Earnings Reports

5 past events · Latest: Nov 04 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 04	Q2 2026 earnings	Positive	-6.2%	Stronger revenue and EBITDA growth with FY26 guidance raised again.
Aug 05	Q1 2026 earnings	Positive	-14.5%	Double-digit revenue growth and higher adjusted EBITDA with raised FY26 outlook.
Jun 16	FY2025 results	Positive	+56.8%	Q4 and full-year growth with margin expansion and initial FY26 guidance.
Feb 05	Q3 2025 earnings	Neutral	+96.5%	Mixed revenue trends but higher guidance supported by strong demand signals.
Nov 06	Q2 2025 earnings	Negative	-44.8%	Revenue and EBITDA declines alongside a new cost-savings transformation plan.

Pattern Detected

Earnings releases have historically triggered large and often asymmetric moves, with several strong selloffs on otherwise improving fundamentals and occasional sharp rallies when guidance or trajectory shifts meaningfully.

Recent Company History

Over the last five earnings-related releases, Digital Turbine has reported steady revenue growth and expanding adjusted EBITDA, alongside a transition from larger GAAP losses toward improved profitability. Quarterly revenue moved from $118.7M in fiscal Q2 2025 to $140.4M in fiscal Q2 2026, with adjusted EBITDA rising from $15.3M to $27.2M. Guidance has been raised multiple times, including FY2026 revenue targets moving from $515–525M to $540–550M. Market reactions have been volatile, with both large gains and sharp declines around these updates.

Historical Comparison

earnings

+43.7 %

Average Historical Move

Historical Analysis

Earnings headlines for APPS have produced large swings, with an average move of 43.73%. Past reports often paired improving EBITDA and raised guidance with volatile, sometimes contrary, price reactions.

Typical Pattern

Across recent earnings cycles, revenue has climbed from $118.7M in fiscal Q2 2025 to $140.4M in fiscal Q2 2026, while adjusted EBITDA rose from $15.3M to $27.2M. Full-year guidance has been repeatedly increased, reflecting a shift from stabilization in FY2025 to accelerating growth and margin expansion in FY2026 updates.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-05

The company has an active S-3ASR shelf registration filed on 2025-08-05, effective through 2028-08-05, with at least two recorded usages via 424B5 and 424B7 supplements. Specific capacity amounts are not provided in the current context.

Market Pulse Summary

The stock is surging +18.4% following this news. A strong positive reaction aligns with the pattern ...

Analysis

The stock is surging +18.4% following this news. A strong positive reaction aligns with the pattern of large moves around APPS earnings, where prior reports saw average shifts of 43.73%. The latest quarter delivered $151.4M in revenue, 12% YoY growth, and a swing to GAAP profitability with $5.1M in net income. Investors have previously reacted sharply to upgraded guidance, and the raised FY2026 outlook could continue to be a key focus for sustainability.

Key Terms

gaap, eps, non-gaap, adjusted net income, +2 more

6 terms

gaap financial

"Third Quarter GAAP Net Income of $5.1 Million and GAAP EPS of $0.03"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

eps financial

"Third Quarter GAAP Net Income of $5.1 Million and GAAP EPS of $0.03"

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

non-gaap financial

"Third Quarter Non-GAAP Adjusted Net Income1 of $21.7 Million and Non-GAAP Adjusted EPS1"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

adjusted net income financial

"Third Quarter Non-GAAP Adjusted Net Income1 of $21.7 Million"

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

adjusted ebitda financial

"Third Quarter Non-GAAP Adjusted EBITDA2 Totaled $38.8 Million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Non-GAAP free cash flow3 totaled $6.4 million in the fiscal third quarter of 2026."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

AI-generated analysis. Not financial advice.

Third Quarter Revenue Totaled $151.4 Million, Representing Year-over-Year Growth of 12%

Third Quarter GAAP Net Income of $5.1 Million and GAAP EPS of $0.03; Third Quarter Non-GAAP Adjusted Net Income¹ of $21.7 Million and Non-GAAP Adjusted EPS¹ of $0.18

Third Quarter Non-GAAP Adjusted EBITDA² Totaled $38.8 Million, Representing Year-over-Year Growth of 76%

AUSTIN, Texas, Feb. 3, 2026 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2025.

Recent Financial Highlights:

• Fiscal third quarter of 2026 revenue totaled $151.4 million, representing an increase of 12% year-over-year as compared to the fiscal third quarter of 2025.
• GAAP net income for the fiscal third quarter of 2026 was $5.1 million, or $0.03 per share, as compared to GAAP net loss for the fiscal third quarter of 2025 of $23.1 million, or ($0.22) per share. Non-GAAP adjusted net income¹ for the fiscal third quarter of 2026 was $21.7 million, or $0.18 per share, as compared to Non-GAAP adjusted net income¹ of $14.2 million, or $0.13 per share, in the fiscal third quarter of 2025.
• Non-GAAP adjusted EBITDA² for the fiscal third quarter of 2026 was $38.8 million, representing an increase of 76% year-over-year as compared to Non-GAAP adjusted EBITDA² of $22.0 million in the fiscal third quarter of 2025.
• Non-GAAP free cash flow³ totaled $6.4 million in the fiscal third quarter of 2026.

"Our December quarter results reflected a continuance of our positive business momentum," said Bill Stone, CEO.  "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."

Fiscal 2026 Third Quarter Financial Results

Total revenue for the third quarter of fiscal 2026 was $151.4 million, representing year-over-year growth of 12% as compared to revenue of $134.6 million for the third quarter of fiscal 2025. Total On Device Solutions revenue before intercompany eliminations was $99.6 million. Total App Growth Platform revenue before intercompany eliminations was $52.6 million.

GAAP net income for the third quarter of fiscal 2026 was $5.1 million, or $0.03 per share, as compared to GAAP net loss for the third quarter of fiscal 2025 of $23.1 million, or ($0.22) per share.

Non-GAAP adjusted net income¹ for the third quarter of fiscal 2026 was $21.7 million, or $0.18 per share, as compared to Non-GAAP adjusted net income¹ of $14.2 million, or $0.13 per share, in the third quarter of fiscal 2025.

Non-GAAP adjusted EBITDA² for the third quarter of fiscal 2026 was $38.8 million, representing year-over-year growth of 76% as compared to Non-GAAP adjusted EBITDA² for the third quarter of fiscal 2025 of $22.0 million.

Business Outlook

Based on information available as of February 3, 2026, the Company is raising its expectations for fiscal year 2026 to the following:

• Revenue of between $553 million and $558 million
• Non-GAAP adjusted EBITDA² of between $114 million and $117 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.

About Digital Turbine, Inc.

Digital Turbine empowers superior mobile consumer experiences and results for the world's leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners' abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com. 

Conference Call

Management will host a conference call and webcast today at 4:30p.m. ET to discuss its fiscal 2026 third quarter financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed via webcast link: https://app.webinar.net/0Z1gnza8lmQ.  The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 8758955. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine's website.  The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.

For those unable to join the live call, a playback will be available through February 10th, 2026. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 6108249.

An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.

Use of Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share ("EPS"), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.

Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management's internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

¹Non-GAAP adjusted net income and EPS are defined as GAAP net income and EPS adjusted to exclude the effect of the following, if any: stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent consideration, contract settlement fees, impairment of goodwill, tax adjustments, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment, the amortization of debt discount and issuance costs, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific September 2, 2025 debt refinance transaction and related issuance of warrants. Readers are cautioned that non-GAAP adjusted net income and EPS should not be construed as an alternative to comparable GAAP net income figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

²Non-GAAP adjusted EBITDA is calculated as GAAP net income excluding the following cash and non-cash expenses, if any: 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 consideration, impairment of goodwill, severance costs, (gain)/loss on extinguishment of debt, amortization of debt discount and issuance costs, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment, the amortization of debt discount, issuance costs, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific September 2, 2025 debt refinance transaction and related issuance of warrants. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.

³Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding the following, if any: transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.

⁴Non-GAAP gross profit is defined as GAAP income from operations adjusted to exclude the effect of the following, if any: product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, impairment of goodwill and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company's financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.

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, Inc.
brian.bartholomew@digitalturbine.com 

 

Digital Turbine, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (in thousands, except share and per share amounts)
		Three months ended December 31,				Nine months ended December 31,
		2025		2024		2025		2024
Net revenue		$     151,399		$          134,637		$   422,702		$   371,354
Costs of revenue and operating expenses
Revenue share		64,425		69,947		185,656		182,092
Other direct costs of revenue		12,205		8,954		34,251		25,182
Product development		9,892		10,203		31,018		30,350
Sales and marketing		14,326		15,494		42,361		47,628
General and administrative		28,897		42,792		105,889		128,485
Total costs of revenue and operating expenses		129,745		147,390		399,175		413,737
Income (loss) from operations		21,654		(12,753)		23,527		(42,383)
Interest and other income (expense), net
Change in fair value of contingent consideration		(231)		(500)		(231)		(300)
Interest expense, net		(13,561)		(7,913)		(33,859)		(24,638)
Amortization of debt discount and issuance costs		(4,007)		(533)		(7,939)		(1,290)
Unrealized loss on derivatives		1,600		—		(735)		—
Foreign exchange transaction gain		2,815		1,037		3,037		879
Loss on extinguishment of debt		—		—		(9,795)		—
Other income (expense), net		74		(57)		(1,801)		21
Total interest and other expense, net		(13,310)		(7,966)		(51,323)		(25,328)
Income (loss) before income taxes		8,344		(20,719)		(27,796)		(67,711)
Income tax provision		3,237		2,412		2,596		5,562
Net income (loss)		5,107		(23,131)		(30,392)		(73,273)
Other comprehensive loss
Foreign currency translation loss		(3,260)		(4,119)		(1,264)		(3,175)
Comprehensive income (loss)		1,847		(27,250)		(31,656)		(76,448)
Net income (loss) per common share
Basic		$            0.04		$              (0.22)		$       (0.27)		$       (0.71)
Diluted		$            0.03		$              (0.22)		$       (0.27)		$       (0.71)
Weighted-average common shares outstanding
Basic		115,921		104,148		110,593		103,201
Diluted		120,474		104,148		110,593		103,201

 

Digital Turbine, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except par value and share amounts)
		December 31, 2025		March 31, 2025
		(Unaudited)
ASSETS
Current assets
Cash, cash equivalents, and restricted cash		$               40,423		$             40,084
Accounts receivable, net		245,324		181,770
Prepaid expenses		7,529		6,923
Value-added tax receivable		10,552		8,291
Other current assets		14,246		5,711
Total current assets		318,074		242,779
Property and equipment, net		48,984		46,966
Right-of-use assets		7,577		9,924
Intangible assets, net		226,961		257,697
Goodwill		223,788		221,741
Other non-current assets		32,791		33,747
TOTAL ASSETS		$             858,175		$           812,854
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$             127,538		$           139,944
Accrued revenue share		94,123		35,264
Accrued compensation		17,459		7,503
Acquisition purchase price liabilities		540		1,697
Short-term debt, net of debt discount and issuance costs		4,688		—
Other current liabilities		43,801		38,118
Total current liabilities		288,149		222,526
Long-term debt, net of debt discount and issuance costs		350,280		408,687
Derivative liabilities		4,402		—
Deferred tax liabilities, net		11,698		16,308
Other non-current liabilities		9,044		11,375
Total liabilities		663,573		658,896
Commitments and contingencies
Stockholders' equity
Preferred stock
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1)		100		100
Common stock
$0.0001 par value: 200,000,000 shares authorized; 120,372,292 issued and 119,614,167 outstanding at December 31, 2025; 106,735,767 issued and 105,977,642 outstanding at March 31, 2025		10		10
Additional paid-in capital		964,965		892,665
Treasury stock (758,125 shares at December 31, 2025 and March 31, 2025)		(71)		(71)
Accumulated other comprehensive loss		(52,568)		(51,304)
Accumulated deficit		(717,834)		(687,442)
Total stockholders' equity		194,602		153,958
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$             858,175		$           812,854

 

Digital Turbine, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands)
		Three months ended December 31,
		2025		2024
Cash flows from operating activities:
Net (loss) income		$              5,107		$          (23,131)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		16,565		19,613
Amortization of debt discount and issuance costs		4,007		533
Allowance for credit losses		(653)		846
Unrealized loss on derivatives		(1,600)		—
Stock-based compensation expense		495		8,250
Change in estimate of remaining contingent consideration		231		500
Non-cash lease expense		860		811
Foreign exchange transaction gain		(2,815)		(1,037)
(Increase) decrease in assets:
Accounts receivable, gross		(38,841)		(9,091)
Prepaid expenses		(1,413)		143
Value-added tax receivable		(860)		(661)
Other current assets		(6,286)		618
Right-of-use asset		26		(573)
Other non-current assets		353		284
Increase (decrease) in liabilities:
Accounts payable		15,462		(7)
Accrued revenue share		13,690		5,022
Accrued compensation		4,323		1,244
Other current liabilities		8,028		9,719
Deferred income taxes		(4,927)		(2,243)
Other non-current liabilities		2,424		(397)
Net cash provided by operating activities		14,176		10,443
Cash flows from investing activities
Capital expenditures		(7,786)		(7,125)
Net cash used in investing activities		(7,786)		(7,125)
Cash flows from financing activities
Payment of debt issuance costs		(571)		(66)
Payment of deferred business acquisition consideration		(315)		—
Repayment of debt obligations		(44,908)		—
Proceeds from issuance of common stock in connection with at-the-market offering, net of issuance costs of $1,337		43,236		—
Payment of withholding taxes for net share settlement of equity awards		(204)		(71)
Options exercised		662		10
Net cash used in financing activities		(2,100)		(127)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(3,151)		(642)
Net change in cash and cash equivalents and restricted cash		1,139		2,549
Cash and cash equivalents and restricted cash, beginning of period		39,284		32,765
Cash and cash equivalents and restricted cash, end of period		$            40,423		$            35,314

 

REVENUE BY SEGMENT
(in thousands)
(Unaudited)
		Three months ended December 31,
		2025		2024		% Change
On Device Solutions		$           99,556		$           91,736		9 %
App Growth Platform		52,616		44,241		19 %
Elimination		(773)		(1,340)		(42) %
Consolidated		$         151,399		$         134,637		12 %

 

GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT
(in thousands)
(Unaudited)
		Three months ended December 31,
		2025		2024
Net revenue		$      151,399		$      134,637
(Loss) income from operations		21,654		(12,753)
Add-back items:
Product development		9,892		10,203
Sales and marketing		14,326		15,494
General and administrative		28,897		42,792
Depreciation of software included in other direct costs of revenue		—		17
Contract settlement fees		—		3,800
Non-GAAP gross profit		$        74,769		$        59,553
Non-GAAP gross profit percentage		49 %		44 %
GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET INCOME
(in thousands)
(Unaudited)
		Three months ended December 31,
		2025		2024
Net (loss) income		$          5,107		(23,131)
Add-back items:
Stock-based compensation expense		495		8,250
Amortization of intangibles		8,868		13,474
Change in fair value of contingent consideration		231		500
Tax adjustment (1)		4,547		7,685
Business transformation costs		—		667
Transaction-related expenses		—		207
Severance costs		37		2,220
Contract settlement fees		—		3,800
Amortization of debt discount and issuance costs		4,007		533
Unrealized loss on derivatives		(1,600)		—
Non-GAAP adjusted net income		$        21,692		$        14,205
Non-GAAP adjusted net income per common share		$            0.18		$            0.13
Weighted-average common shares outstanding, diluted		120,474		105,851
(1) Valuation allowance

 

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA
(in thousands)
(Unaudited)
		Three months ended December 31,
		2025		2024
Net income/(loss)		$              5,107		$          (23,131)
Add-back items:
Stock-based compensation expense		495		8,250
Depreciation and amortization		16,565		19,613
Interest expense, net		13,561		7,913
Amortization of debt discount and issuance costs		4,007		533
Other income (expense), net		(74)		57
Change in fair value of contingent consideration		231		500
Business transformation costs		—		667
Foreign exchange transaction gain		(2,815)		(1,037)
Income tax provision		3,237		2,412
Transaction-related expenses		—		207
Severance costs		37		2,220
Contract settlement fees		—		3,800
Unrealized loss on derivatives		(1,600)		—
Non-GAAP adjusted EBITDA		$            38,751		$            22,004

 

GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
(in thousands)
(Unaudited)
		Three months ended December 31,
		2025		2024
Net cash provided by operating activities		$           14,176		$           10,443
Capital expenditures		(7,786)		(7,125)
Transaction-related expenses		—		207
Severance costs		37		2,220
Business transformation costs		—		667
Non-GAAP free cash flow provided by operations		$            6,427		$            6,412

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2026-third-quarter-financial-results-302678013.html

SOURCE Digital Turbine, Inc.

FAQ

What were Digital Turbine (APPS) fiscal Q3 2026 revenue and EPS results?

Digital Turbine reported $151.4M revenue and GAAP EPS of $0.03 for fiscal Q3 2026. According to the company, non-GAAP adjusted net income was $21.7M and non-GAAP EPS was $0.18.

How much did APPS non-GAAP adjusted EBITDA grow in Q3 2026?

Non-GAAP adjusted EBITDA rose to $38.8M, an increase of 76% year-over-year. According to the company, strong demand and expanded global supply drove the large EBITDA improvement.

What guidance did Digital Turbine (APPS) raise for fiscal 2026 on February 3, 2026?

Digital Turbine raised fiscal 2026 guidance to $553M–$558M revenue and $114M–$117M non-GAAP adjusted EBITDA. According to the company, the update reflects continued positive business momentum and demand trends.

Did APPS return to GAAP profitability in Q3 2026 and how does that compare to prior year?

Yes. GAAP net income was $5.1M (EPS $0.03) versus a GAAP net loss of $23.1M in the prior-year quarter. According to the company, improved operations and higher revenue contributed to the swing.

What is Digital Turbine's Q3 2026 non-GAAP free cash flow and why does it matter?

Non-GAAP free cash flow for Q3 2026 totaled $6.4M, showing positive cash generation in the quarter. According to the company, this reflects operating cash conversion alongside growth in adjusted EBITDA.