Financial Data and Key Metrics Changes - Revenue for the quarter was $140.4 million, representing an 18% year-over-year growth [4][12] - Adjusted EBITDA grew by 78% year-over-year, reaching $27.2 million, with an EBITDA margin of 19.4% [4][13] - Free cash flow improved to $7 million, an increase of nearly $23 million year-over-year [13] - GAAP net loss was $21.4 million, or $0.20 per share, while non-GAAP net income was $16.5 million, or $0.15 per share [15] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated $96 million in revenue, up approximately 17% year-over-year, with international ODS revenue growing over 80% year-over-year [5][12] - App Growth Platform (AGP) revenue was $45 million, reflecting a 20% year-over-year increase [5][12] - Revenue per device in the ODS business saw over 30% year-over-year growth in both the US and international markets [6] Market Data and Key Metrics Changes - International revenues exceeded 25% of total ODS revenues for the first time in company history [5] - The company experienced a 40% sequential improvement in its brand business and a double-digit increase in its DTX or SSP business [6] Company Strategy and Development Direction - The company is focused on leveraging first-party data and AI-driven capabilities to enhance operational efficiency and drive growth [8][12] - Investments in AI, branded as DTIQ, are aimed at improving advertising outcomes and return on ad spend for clients [26][31] - The company is positioning itself to capitalize on the growing trend of alternative app distribution models [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain profitable growth, citing strong momentum across core businesses [11][16] - The company raised its full-year revenue guidance to a range of $540-$550 million and adjusted EBITDA guidance to $100-$105 million for fiscal year 2026 [16] Other Important Information - The company completed a successful debt refinancing with a new four-year term loan facility, enhancing liquidity for growth initiatives [5][15] - The Ignite Graph and DTIQ are seen as major growth drivers for the future, with over 1,000 unique data signals being utilized [9][30] Q&A Session Summary Question: Insights on brand business and ROI - Management highlighted the integration of platforms leading to improved results and noted that direct brand relationships accounted for 47% of total brand revenue in the September quarter [18][20] Question: International market penetration and RPD revenue - Management reported solid double-digit growth in international RPDs and emphasized the significance of international revenue exceeding 25% of ODS revenues [23] Question: Role of AI in operations and advertising - AI is a critical part of the company's strategy, with significant investments in DTIQ aimed at improving operational efficiency and advertising outcomes [25][26] Question: Impact of recent Supreme Court ruling on alternative app storefront - Management expressed excitement about the democratization of app distribution and the potential for growth in this area [27][28] Question: Competitive landscape changes - Management noted reduced competition in the device side of the business due to a major player exiting the market, while the AGP side remains competitive but focused on building demand-supply connections [32][34]

Market Overview - U.S. equities faced a significant downturn on November 4, 2025, with all three major indexes closing in the red, particularly the tech-heavy Nasdaq Composite, which led the declines [1][2] - The S&P 500 fell 1.2% to 6,771 points, while the Dow Jones Industrial Average decreased by 0.5% or approximately 238 points to 47,085, and the Nasdaq Composite dropped 2% to 23,348 [2] - The Cboe Volatility Index (VIX) surged 10% to 18.9, indicating increased investor apprehension amid concerns over valuations and a potential market correction [2] Economic Data and Events - The ongoing U.S. government shutdown is delaying key economic data releases, increasing focus on private sector data [3] - The ADP employment report is anticipated, which may provide insights into hiring trends following a dip in September [3] - The ISM Manufacturing PMI declined to 48.7 in October from 49.1 in September, marking the eighth consecutive month of contraction [4] Corporate Developments - Palantir Technologies (PLTR) saw a significant decline of 7.9% despite surpassing analysts' forecasts for sales and profit, raising concerns over high valuations [5] - Nvidia (NVDA) fell 4%, and Microsoft (MSFT) dipped 1%, reflecting growing concerns about the sustainability of the AI rally [5] - Uber Technologies (UBER) slumped 6.3% despite reporting better-than-expected financial results [5] - Yum! Brands (YUM) rose 6.1% after announcing strong quarterly results and considering selling its Pizza Hut unit [5] - Kinross Gold Corporation (KGC) reported robust third-quarter results, including record free cash flow and an increase in share buyback target and dividend [6] Earnings Announcements - Advanced Micro Devices, Inc. (AMD) is expected to report a 27.63% year-over-year increase in earnings per share [10] - Arista Networks, Inc. (ANET) is forecasted to see a 14.04% increase in earnings per share [10] - Axon Enterprise, Inc. (AXON) plunged 20% in after-hours trading following a Q3 earnings miss [10] - Digital Turbine (APPS) surged 22% in after-hours trading after reporting its FY 2026 Q2 earnings [10]

Financing and Debt Management - The Company refinanced its existing senior credit facility, securing loans totaling $430,000, all borrowed in full on August 29, 2025[138][139]. - The Loans accrue interest at a term SOFR rate ranging from 7.50% to 8.00% and a reference rate ranging from 6.50% to 7.00%[140]. - The Financing Agreement requires the Company to maintain a minimum liquidity of $10,000 until March 31, 2026, and $20,000 thereafter[142]. - As of September 30, 2025, the outstanding secured indebtedness under the Financing Agreement is $419,908, with a maturity date of August 29, 2029[203]. - The interest rate on the company's borrowings under the Financing Agreement was 12.05% as of September 30, 2025, exposing the company to interest rate fluctuations[222]. - The company faces risks related to refinancing its debt and potential adverse impacts on its financial condition if unable to meet obligations[209]. Business Transformation and Costs - The Company incurred $31 and $1,309 in business transformation costs during the six months ended September 30, 2025 and September 30, 2024, respectively[152]. - The transformation program is expected to yield more than $25,000 in annual cash expense savings[153]. - The company incurred total business transformation and severance costs of $341 and $536 for the three and six months ended September 30, 2025, respectively[167]. - The Company has initiated a business transformation project, including a new global cloud-based ERP system[151]. Revenue and Financial Performance - Net revenue for the three months ended September 30, 2025, was $140,377, an increase of 18.2% compared to $118,728 for the same period in 2024[156]. - Net revenue for the six months ended September 30, 2025, was $271,303, reflecting a 14.6% increase from $236,717 in 2024[156]. - On Device Solutions revenue increased by $14,050 or 17.0% to $96,464 for the three months ended September 30, 2025, driven by higher device volumes internationally[159]. - App Growth Platform revenue for the three months ended September 30, 2025, increased by $7,339 or 19.7% to $44,685, primarily due to increased advertising exchange revenue[161]. - Revenue share increased by $6,757 or 12.0% to $63,093 for the three months ended September 30, 2025, representing 44.9% of total net revenue[168]. Expenses and Losses - Total costs of revenue and operating expenses for the three months ended September 30, 2025, were $133,843, a slight increase of 1.2% from $132,270 in 2024[163]. - Product development expenses for the three months ended September 30, 2025, were $10,979, an increase of 16.4% from $9,433 in 2024[163]. - Sales and marketing expenses decreased by $1,441 or 9.1% to $14,446 for the three months ended September 30, 2025, and was 10.3% as a percentage of total net revenue compared to 13.4% for the same period in 2024[183]. - General and administrative expenses decreased by $8,093 or 19.2% to $34,083 for the three months ended September 30, 2025, compared to $42,176 for the same period in 2024[188]. - Interest expense, net, increased by $2,722 or 31.0% for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to increased interest rates and higher average outstanding borrowings[193]. - The company recorded a loss on extinguishment of debt of $9,795 for the three months ended September 30, 2025, compared to the same period in 2024[198]. - Net loss for the three months ended September 30, 2025, was $21,395, a decrease of 14.4% compared to a net loss of $24,986 in 2024[156]. Cash Flow and Investments - As of September 30, 2025, the company had unrestricted cash of approximately $38,846 and restricted cash of approximately $438[199]. - The company incurred a net loss of $21,395 for the three months ended September 30, 2025, while generating cash from operating activities of $14,460[199]. - Cash provided by operating activities for the six months ended September 30, 2025, was $23,248, a significant increase of $33,319 compared to $(10,071) for the same period in 2024[212][213]. - Net cash used in investing activities for the six months ended September 30, 2025, was $15,386, an increase of 14.8% from $13,408 in 2024[212][214]. - Proceeds from borrowings, net of original issue discount, amounted to $418,700 for the six months ended September 30, 2025, a substantial increase of 1,001.8% compared to $38,000 in 2024[212][215]. - The company reported a net cash used in financing activities of $8,232 for the six months ended September 30, 2025, compared to a net cash provided of $23,372 in 2024[215][218]. Market Conditions and Challenges - The Company is actively monitoring macroeconomic conditions and geopolitical developments that may impact its business[128][135]. - The company is facing challenges due to declining sales volumes of new mobile devices, influenced by inflation and economic uncertainty[130]. - The company is exploring options to raise additional capital through its ATM program or the sale of equity securities, which may dilute existing stockholders' ownership[208]. - The company has minimum purchase commitments under hosting agreements totaling approximately $213,379 over the next five fiscal years[210]. - As of September 30, 2025, the company was in compliance with all covenants under the Financing Agreement[207].

Core Insights - Digital Turbine (NASDAQ: APPS) reported a significant earnings beat, exceeding expectations for both revenue and adjusted earnings while also raising its full-year guidance [1] Financial Performance - The company delivered strong financial results, indicating robust operational performance [1] - The earnings report highlighted a decisive improvement in key financial metrics compared to previous periods [1] Future Outlook - Digital Turbine raised its full-year guidance, suggesting confidence in continued growth and performance [1]

Financial Performance - Fiscal Q2 2026 revenue totaled $140.4 million, representing year-over-year growth of 18% compared to $118.7 million in Q2 2025[4] - GAAP net loss for Q2 2026 was $21.4 million, or ($0.20) per share, an improvement from a net loss of $25.0 million, or ($0.24) per share in Q2 2025[6] - Non-GAAP adjusted net income for Q2 2026 was $16.5 million, or $0.15 per share, compared to $5.5 million, or $0.05 per share in Q2 2025[6] - Non-GAAP adjusted EBITDA for Q2 2026 was $27.2 million, representing a 78% increase year-over-year from $15.3 million in Q2 2025[6] - Non-GAAP free cash flow totaled $7.0 million in Q2 2026, an increase of $22.7 million compared to Q2 2025[4] - The net loss for the three months ended September 30, 2025, was $21,395,000, compared to a net loss of $24,986,000 in the same period of 2024[35] - The company reported a basic net loss per common share of $0.20 for the three months ended September 30, 2025, compared to $0.24 for the same period in 2024[31] - The company reported a net loss of $(21,395,000) in Q3 2025, an improvement from a net loss of $(24,986,000) in Q3 2024, showing a reduction of 10.4%[39] Revenue Segments - The On Device Solutions segment generated $96,464,000 in revenue, a 17% increase from $82,414,000 year-over-year[37] - The App Growth Platform segment reported revenue of $44,685,000, reflecting a 20% increase compared to $37,346,000 in the prior year[37] - Net revenue for Q3 2025 increased to $140,377,000, up from $118,728,000 in Q3 2024, representing a growth of 18.2%[38] Cash Flow and Expenses - Cash and cash equivalents and restricted cash at the end of the period were $39,284,000, up from $32,765,000 at the end of the same quarter in 2024[35] - The company experienced a net cash provided by operating activities of $14,460,000 for the three months ended September 30, 2025, compared to a net cash used of $8,719,000 in the same period of 2024[35] - Non-GAAP gross profit for Q3 2025 was $66,042,000, with a gross profit margin of 47%, compared to $54,005,000 and 45% in Q3 2024[38] - Non-GAAP adjusted EBITDA for Q3 2025 reached $27,192,000, compared to $15,314,000 in Q3 2024, reflecting a growth of 77.5%[40] - Non-GAAP free cash flow for Q3 2025 was $7,031,000, compared to a negative free cash flow of $(15,691,000) in Q3 2024[42] - Stock-based compensation expense decreased to $5,451,000 in Q3 2025 from $8,999,000 in Q3 2024, a reduction of 39.8%[39] - Capital expenditures for Q3 2025 were $7,770,000, slightly higher than $7,477,000 in Q3 2024[42] Outlook and Strategy - The company raised its full-year revenue outlook to between $540 million and $550 million[10] - Non-GAAP adjusted EBITDA guidance for the full year is projected to be between $100 million and $105 million[10] - The company expressed high conviction in its strategy to pursue a half-trillion dollar market opportunity[3] - The company highlighted strong demand for its platform and operational execution as key drivers of performance[3] Debt and Assets - The company announced a successful completion of debt refinancing with a new 4-year $430.0 million term loan credit facility[4] - Total assets as of September 30, 2025, were $818,665,000, compared to $812,854,000 as of March 31, 2025[33] - Long-term debt as of September 30, 2025, was $393,753,000, down from $408,687,000 as of March 31, 2025[33] - Total costs of revenue and operating expenses for the three months ended September 30, 2025, were $133,843,000, slightly up from $132,270,000 in the same quarter of 2024[31] Shareholder Information - The weighted-average common shares outstanding, diluted, increased to 113,009,000 in Q3 2025 from 105,345,000 in Q3 2024[39]

Core Insights - Digital Turbine, Inc. reported a total revenue of $140.4 million for the second quarter of fiscal 2026, reflecting an 18% year-over-year growth compared to $118.7 million in the same quarter of fiscal 2025 [4][8] - The company experienced a GAAP net loss of $21.4 million, or ($0.20) per share, which is an improvement from a net loss of $25.0 million, or ($0.24) per share, in the second quarter of fiscal 2025 [5][8] - Non-GAAP adjusted net income for the second quarter of fiscal 2026 was $16.5 million, or $0.15 per share, compared to $5.5 million, or $0.05 per share, in the prior year [5][8] - Non-GAAP adjusted EBITDA reached $27.2 million, representing a significant year-over-year growth of 78% from $15.3 million in the second quarter of fiscal 2025 [6][8] - The company has raised its full-year revenue outlook for fiscal 2026 to between $540 million and $550 million [7] Financial Performance - Total revenue for the second quarter of fiscal 2026 was $140.4 million, up from $118.7 million in the same quarter of the previous year, marking an 18% increase [4][8] - On Device Solutions revenue was $96.5 million, while App Growth Platform revenue was $44.7 million for the second quarter [4] - Non-GAAP free cash flow totaled $7.0 million, an increase of $22.7 million compared to the same quarter in fiscal 2025 [8] Management Commentary - The CEO, Bill Stone, highlighted the accelerating business momentum and strong demand for the company's platform, which contributed to exceeding expectations in both top and bottom-line results [3] - The company expresses high confidence in its strategy to capture a significant market opportunity estimated at half a trillion dollars [3]

Core Insights - Digital Turbine, Inc. will host a conference call and webcast to discuss its fiscal 2026 second quarter financial results on November 4, 2025 [1] - The call will be led by CEO Bill Stone and CFO Steve Lasher, and will be accessible via a dedicated webcast link and phone numbers for both U.S. and international participants [1] - A playback of the call will be available until November 11, 2025, providing additional access for those unable to join live [2] Company Overview - Digital Turbine is a global mobile platform company that enhances mobile experiences for consumers and delivers results for mobile operators, advertisers, and publishers [3] - The company simplifies the process for partners to achieve recognition, acquisition, and monetization, connecting them to consumers across various devices [3] - Digital Turbine is headquartered in North America and has a global presence with offices worldwide [3]

Core Insights - The focus is on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1] - The S&P 500 and Nasdaq saw significant increases of 367% and 685% respectively from 2009 to 2019, following a recommendation to buy at the financial crisis bottom in March 2009 [1] Investment Strategy - The investment strategy emphasizes long-term investment in quality stocks, utilizing options as part of the approach [1] - The goal is to assist investors in making money through investments in high-quality growth stocks [1]

Core Insights - Digital Turbine, Inc. has secured a new four-year $430 million term loan credit facility, which supports the company's growth momentum and fiscal outlook [1][2][3] - The refinancing allows the company to fully repay its prior credit facility, extending its debt maturity and enabling the execution of strategic initiatives [2][3] - The company has raised its fiscal year 2026 revenue guidance to a range of $530 million to $535 million, and Non-GAAP adjusted EBITDA guidance to $92 million to $95 million, reflecting strong first-quarter performance [3][4] Financial Performance - The updated fiscal year 2026 guidance includes revenue expectations of $530 million to $535 million, an increase from the previous lower end of $525 million [4] - Non-GAAP adjusted EBITDA guidance has been raised to $92 million to $95 million, up from the previous range of $90 million to $95 million [4] Strategic Initiatives - The new credit facility provides a multi-year runway for Digital Turbine to focus on innovation, operational efficiencies, and delivering premium mobile experiences [2][3] - The company aims to continue executing its business strategy with discipline, leveraging improved execution and a return to growth performance [3]

Core Viewpoint - AI software stocks continued their downward trend this week, with significant declines observed across multiple companies in the sector [1] Company Performance - Palantir (PLTR.US) experienced a drop of over 7.4% [1] - SoundHound AI (SOUN.UD) fell by more than 8.9% [1] - Figma Inc (FIG.US) decreased by over 1.7% [1] - Adobe (ADBE.US) saw a decline of 0.76% [1] - Digital Turbine (APPS.US) dropped by more than 1.8% [1]