Digital Turbine, Inc.

What they do

Digital Turbine operates two segments: On Device Solutions (ODS) and App Growth Platform (AGP). ODS delivers apps and content to end users through carrier and OEM partnerships, monetized via app installs, programmatic ads, sponsored content, and editorial content. AGP provides advertising and ad monetization solutions, including a DSP, offer wall, and real-time bidding technology, enabling user acquisition and brand campaigns on direct mobile app inventory.

Revenue drivers

• On Device Solutions (ODS) — Includes Application Media and Content Media; in Q1 FY2027 net revenue was $110.0 million, up 15% year-over-year, driven by carrier and OEM partnerships.
• App Growth Platform (AGP) — Includes Advertising Solutions and Ad Monetization Solutions; in Q1 FY2027 net revenue was $56.6 million, up 56% year-over-year, powered by brand demand and the DT Exchange.
• SingleTap and DT DSP — User acquisition tools that reduce friction in app installs, integrated into ODS and AGP, contributing to higher conversion rates and monetization.

Recent performance

For Q1 FY2027 (quarter ended June 30, 2026), revenue was $166.0 million, up 27% year-over-year from $130.9 million. GAAP net loss was $11.3 million, or ($0.09) per share, compared to a net loss of $14.1 million, or ($0.13) per share, in the prior year. Non-GAAP adjusted EBITDA was $42.5 million, up 69% year-over-year, and non-GAAP adjusted EPS was $0.19. Non-GAAP free cash flow was $11.3 million. Full-year FY2026 revenue was $565.3 million with a net loss of $37.7 million.

Strategy

Digital Turbine is investing in AI-driven capabilities through partnerships with Google Cloud and Databricks to enhance targeting, recommendations, and real-time optimization. The company is expanding its on-device distribution through a strategic partnership with Orange to bring alternative app distribution and SingleTap to Orange subscribers. Management is also focused on debt reduction, as evidenced by the sale of its dormant exchange for $4.7 million and the payoff of a portion of its outstanding debt. The company raised its full-year guidance for FY2027.

Risks

• Customer concentration — A significant portion of revenue is derived from a limited number of wireless carriers and customers, making the company vulnerable to loss of key relationships.
• Intense competition — The mobile advertising and app distribution market is highly competitive, with rivals like Google Play, Facebook, and AppLovin, which can also be customers or competitors.
• History of net losses — The company has reported net losses for fiscal years 2024, 2025, and 2026, with cumulative losses of over $500 million.
• Debt obligations — Long-term debt of $343.5 million as of June 30, 2026, with covenants and liquidity requirements that could strain cash flow.

Outlook

Management expects FY2027 revenue of between $650 million and $670 million and non-GAAP adjusted EBITDA of between $145 million and $155 million. The company raised its full-year guidance following strong Q1 results. GAAP net income guidance is not provided because stock-based compensation expense is difficult to predict.