Digital Turbine (NASDAQ:APPS – Get Free Report) issued its quarterly earnings data on Monday. The software maker reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.01, FiscalAI reports. Digital Turbine had a negative net margin of 4.46% and a positive return on equity of 38.34%. The business had revenue of $178.68 million during the quarter, compared to the consensus estimate of $166.75 million.
Here are the key takeaways from Digital Turbine’s conference call:
- Revenue guidance increased: Digital Turbine reported Q2 revenue of $178.7 million, up 27% year over year, and raised its fiscal 2027 revenue outlook by $20 million to $670 million–$690 million.
- Both business segments grew: On-Device Solutions revenue rose 20%, while App Growth Platform revenue increased 42%, including 45% growth in the brand business. Management attributed momentum to stronger advertiser outcomes, data and AI efforts, and expanded supply and demand.
- Profitability guidance was unchanged: The company maintained its fiscal-year adjusted EBITDA outlook of $145 million–$155 million despite raising revenue guidance, citing measured investment in AI and data and a mix shift toward businesses with different profitability profiles. Q2 non-GAAP gross margin declined to 43% from 47% a year earlier.
- Cash generation and leverage improved: First-half non-GAAP free cash flow was $21.8 million, versus $8.4 million a year earlier, and net leverage fell to 2.3 turns from more than 4.0 turns a year ago.
Digital Turbine Price Performance
Shares of APPS traded up $0.92 during mid-day trading on Monday, hitting $11.30. 7,991,334 shares of the company were exchanged, compared to its average volume of 3,808,197. Digital Turbine has a 1-year low of $2.74 and a 1-year high of $15.34. The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.20 and a current ratio of 1.20. The company has a 50 day moving average of $10.59 and a 200-day moving average of $7.65. The stock has a market cap of $1.37 billion, a price-to-earnings ratio of -43.46, a price-to-earnings-growth ratio of 0.53 and a beta of 3.01.
Wall Street Analysts Forecast Growth
APPS has been the topic of a number of recent analyst reports. Zacks Research downgraded Digital Turbine from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. Royal Bank Of Canada began coverage on Digital Turbine in a report on Thursday, October 1st. They issued an “outperform” rating and a $15.00 price objective on the stock. TD Cowen restated a “hold” rating on shares of Digital Turbine in a research report on Tuesday, September 29th. Benchmark upped their target price on Digital Turbine from $15.00 to $16.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Finally, Northland Securities began coverage on Digital Turbine in a research report on Thursday, October 29th. They set an “outperform” rating and a $17.00 target price on the stock. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $15.42.
Read Our Latest Report on APPS
Digital Turbine Company Profile
Digital Turbine, Inc (NASDAQ: APPS) is a mobile advertising and application distribution company that helps advertisers, mobile carriers, device manufacturers and application developers connect with smartphone users. Its platform is designed to support the discovery, distribution, promotion and monetization of mobile applications and digital content.
The company provides technology that can be integrated into mobile devices and operating systems, including tools for app recommendations, device setup and application installation.
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