Digital Turbine (NASDAQ:APPS) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Digital Turbine (NASDAQ:APPS) posted its quarterly earnings results on Tuesday. The software maker reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.03, Zacks reports. Digital Turbine had a negative net margin of 6.68% and a positive return on equity of 27.60%.

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

• Revenue rose 27% year over year to $166 million, while adjusted EBITDA increased 69% to $42.5 million, expanding the margin to 25.6% amid continued operating leverage.
• The App Growth Platform grew 56%, led by DTX up 54% and the direct brand business up more than 70%; management attributed the momentum to stronger advertiser demand, improved targeting, and AI-powered optimization.
• Digital Turbine raised fiscal 2027 guidance to $650 million–$670 million of revenue and $145 million–$155 million of adjusted EBITDA, citing AI and data, international On Device Solutions, brand advertising, Ignite, and alternative app distribution as growth drivers.
• The company strengthened its balance sheet, generating $17.9 million in operating cash flow, reducing debt by more than $8 million during the quarter, and lowering net leverage to 2.5 times; subsequent leverage improvements also reduced the margin on its largest loan tranche by 50 basis points.
• Management expects AI to benefit app usage, advertising demand, and operational efficiency, but acknowledged that macroeconomic conditions, device-supply constraints, and a potential non-cash accounting adjustment to beginning retained earnings remain factors investors should monitor.

Digital Turbine Stock Performance

APPS traded up $0.51 on Tuesday, hitting $9.51. The company’s stock had a trading volume of 6,885,617 shares, compared to its average volume of 4,060,349. Digital Turbine has a 12 month low of $2.74 and a 12 month high of $13.60. The firm has a market cap of $1.15 billion, a P/E ratio of -26.42, a price-to-earnings-growth ratio of 0.62 and a beta of 2.81. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 1.84. The company’s 50 day simple moving average is $9.51 and its 200-day simple moving average is $5.93.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Bank of America raised shares of Digital Turbine from a “neutral” rating to a “buy” rating and set a $7.50 price objective on the stock in a research note on Wednesday, May 27th. Zacks Research downgraded shares of Digital Turbine from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. Weiss Ratings lowered shares of Digital Turbine from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, June 5th. Roth Capital began coverage on shares of Digital Turbine in a research report on Tuesday, July 21st. They issued a “buy” rating and a $11.50 price target on the stock. Finally, Benchmark began coverage on Digital Turbine in a research note on Tuesday, July 21st. They set a “buy” rating and a $15.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Digital Turbine currently has an average rating of “Moderate Buy” and a consensus price target of $11.00.

Institutional Investors Weigh In On Digital Turbine

Several institutional investors have recently made changes to their positions in the stock. Invesco Ltd. grew its holdings in Digital Turbine by 369.0% during the 4th quarter. Invesco Ltd. now owns 1,829,003 shares of the software maker’s stock valued at $9,145,000 after buying an additional 1,438,986 shares in the last quarter. Renaissance Technologies LLC bought a new stake in shares of Digital Turbine during the fourth quarter valued at about $3,712,000. Manatuck Hill Partners LLC purchased a new stake in shares of Digital Turbine in the third quarter worth about $3,840,000. Counterpoint Mutual Funds LLC lifted its holdings in shares of Digital Turbine by 634.8% in the fourth quarter. Counterpoint Mutual Funds LLC now owns 634,542 shares of the software maker’s stock worth $3,173,000 after buying an additional 548,188 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its position in shares of Digital Turbine by 272.0% in the second quarter. JPMorgan Chase & Co. now owns 686,327 shares of the software maker’s stock valued at $4,049,000 after acquiring an additional 501,829 shares during the period. Hedge funds and other institutional investors own 63.66% of the company’s stock.

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.