Financial Data and Key Metrics Changes - Total revenue for the fiscal third quarter was $151.4 million, representing a 12% year-over-year growth [4][13] - Adjusted EBITDA for the quarter totaled $38.8 million, reflecting a 76% increase year-over-year, with an EBITDA margin of 26% [14] - GAAP net income was reported at $5.1 million, or $0.03 per share, while non-GAAP net income was $21.7 million, or $0.18 per share [15] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated $99.6 million in revenue, up 9% year-over-year, driven by higher device volumes and revenue per device (RPD) [13][14] - Application Growth Platform (AGP) revenue was $52.6 million, up 19% from the prior year, with strong results in brand business and over 30% growth in DTX or SSP business [7][14] Market Data and Key Metrics Changes - International business drove over 60% year-over-year growth in ODS, with more than 30% of revenues from outside the United States for the first time [7][8] - Overall device volumes grew 20% year-over-year, despite softness in U.S. devices, indicating strong performance from international partners [8] Company Strategy and Development Direction - The company has five strategic priorities aimed at unlocking value from first-party data, building a flywheel effect between supply and demand, scaling the brand business, expanding services through the Ignite platform, and exploring alternative app opportunities [10][11][12] - The company is focused on leveraging AI and machine learning to enhance operational efficiency and drive revenue growth [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and the ability to build on performance, with a raised full-year revenue guidance to $553 million-$558 million and adjusted EBITDA guidance to $114 million-$117 million for fiscal year 2026 [17][18] - The company views the recent Google Gemini announcement positively, as it is expected to increase demand for distribution services [23][24] Other Important Information - The company ended the quarter with a cash balance of $40 million and reduced total debt by over $41 million to $355 million [16] - Free cash flow for the third quarter totaled $6.4 million, reflecting improved cash generation [14] Q&A Session Summary Question: Insights on the app install business and advertising integration - Management highlighted the potential for integrating advertising budgets into user acquisition, creating a self-reinforcing growth cycle [19][20] Question: Impact of Google Gemini announcement - Management believes the announcement will positively affect the company by increasing the need for distribution services for new games [22][24] Question: Observations on Meta's activity on iOS - Management noted that while Meta's activity is increasing, the company is outgrowing the market, with AGP growth at 20% compared to the market's mid- to high-single digits [30]

Digital Turbine (NasdaqCM:APPS) Q3 2026 Earnings call February 03, 2026 04:30 PM ET Speaker4Good afternoon, everyone, and welcome to the Digital Turbine Fiscal 2026 third quarter earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star and then one on your touchtone teleph ...

Digital Turbine, Inc. (NASDAQ:APPS) shares rallied in Tuesday's extended trading after the company released its third-quarter earnings report. Here's a look at the key figures from the quarter. APPS stock is soaring. Watch the price action here.The Details: Digital Turbine reported quarterly earnings of 18 cents per share, which beat the analyst consensus of 12 cents by 56.52%, according to Benzinga Pro.Quarterly revenue of $151.4 million beat the Street estimate of $145.73 million. Non-GAAP adjusted EBITDA ...

Financing and Debt Management - Digital Turbine refinanced its existing senior credit facility with a new Financing Agreement totaling $430 million, secured by substantially all assets[136][137]. - The Financing Agreement requires maintaining a minimum liquidity of $10 million until March 31, 2026, and $20 million thereafter[141]. - The company made principal payments of $44.91 million and $55 million on the Loans during the three and nine months ended December 31, 2025, respectively[138]. - The Loans accrue interest at a term SOFR rate or a reference rate, with margins ranging from 6.50% to 8.00%[139]. - As of December 31, 2025, the outstanding secured indebtedness under the Financing Agreement is $375 million, with a maturity date of August 29, 2029[204]. - A hypothetical increase in market interest rates of 100 basis points would result in an increase in interest expense of $10 per year for every $1,000 of outstanding debt under the Financing Agreement[221]. - The company is subject to risks related to refinancing its debt and may face adverse effects if unable to meet its debt service obligations[209]. Revenue Performance - Net revenue for the three months ended December 31, 2025, was $151,399, an increase of 12.4% compared to $134,637 for the same period in 2024[155]. - For the nine months ended December 31, 2025, net revenue reached $422,702, reflecting a 13.8% increase from $371,354 in 2024[155]. - On Device Solutions revenue increased by 8.5% to $99,556 for the three months ended December 31, 2025, and by 14.4% to $291,468 for the nine months ended December 31, 2025[156][159]. - App Growth Platform revenue rose by 18.9% to $52,616 for the three months ended December 31, 2025, and by 11.3% to $133,593 for the nine months ended December 31, 2025[160][161]. - Revenue share decreased by 7.9% to $64,425 for the three months ended December 31, 2025, and increased by 2.0% to $185,656 for the nine months ended December 31, 2025[169][170]. Cost Management - Total costs of revenue and operating expenses decreased by 12.0% to $129,745 for the three months ended December 31, 2025, and by 3.5% to $399,175 for the nine months ended December 31, 2025[164]. - General and administrative expenses decreased by 32.5% to $28,897 for the three months ended December 31, 2025, and by 17.6% to $105,889 for the nine months ended December 31, 2025[162]. - Product development expenses decreased by $311 or 3.0% to $9,892 for the three months ended December 31, 2025, compared to $10,203 for the same period in 2024[177]. - Sales and marketing expenses decreased by $1,168 or 7.5% to $14,326 for the three months ended December 31, 2025, and represented 9.5% of total net revenue compared to 11.5% for the same period in 2024[183]. - General and administrative expenses, after excluding severance and business transformation costs, decreased by $19,639 for the nine months ended December 31, 2025, compared to the same period in 2024[192]. Business Transformation - Business transformation costs incurred during the nine months ended December 31, 2025, amounted to $31, compared to $1.31 million in the same period of 2024[152]. - The company anticipates ongoing costs related to the business transformation project through early fiscal year 2026[152]. - The transformation program is expected to yield over $25,000 in annual cash expense savings[153]. - The company incurred $2,886 in expenses related to the transformation program during the fiscal year ended March 31, 2025[153]. - The company completed the first deployment phase of its new global cloud-based ERP system in the third quarter of fiscal year 2024[152]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended December 31, 2025, was $37,424 thousand, a significant increase of 9,960.2% compared to $372 thousand for the same period in 2024[212]. - Net cash used in investing activities for the nine months ended December 31, 2025, was $23,172 thousand, an increase of 12.9% from $20,533 thousand in 2024[212]. - Proceeds from borrowings, net of original issue discount, amounted to $418,700 thousand for the nine months ended December 31, 2025, compared to $38,000 thousand in 2024, reflecting a 1,001.8% increase[212]. - The company reported a net cash used in financing activities of $10,332 thousand for the nine months ended December 31, 2025, compared to net cash provided of $23,245 thousand in 2024, indicating a significant change in financing activities[216][217]. Economic and Market Conditions - The company is actively monitoring macroeconomic conditions and geopolitical developments that could impact its business, including inflation and trade disputes[126][133]. - The company is exploring options to raise additional capital through equity securities or debt financing arrangements, which may dilute existing stockholders' ownership[208]. - The company has minimum purchase commitments under hosting agreements totaling approximately $201,925 thousand over the next five fiscal years[211]. - As of December 31, 2025, the company was in compliance with all covenants under the Financing Agreement[207]. Financial Results - The company incurred a net income of $5,107 and a net loss of $30,392 for the three and nine months ended December 31, 2025, respectively[200]. - Interest expense, net, increased by $5,648 or 71.4% for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to increased interest rates[194]. - The company recorded foreign exchange transaction gains of $2,815 and $3,037 for the three and nine months ended December 31, 2025, respectively, compared to losses in the same periods of 2024[198].

Digital Turbine Reports Fiscal 2026 Third Quarter Financial Results 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 Income of $21.7 Million and Non-GAAP Adjusted EPS of $0.18 1 1 Third Quarter Non-GAAP Adjusted EBITDA Totaled $38.8 Million, Representing Year-over-Year Growth of 76% 2 Austin, TX – February 3, 2026 – Digital Turbine, Inc. (Nasdaq: APPS) announced fin ...

Third Quarter Revenue Totaled $151.4 Million, Representing Year-over-Year Growth of 12% Third11 Quarter GAAP Net Income of $5.1 Million and GAAP EPS of $0.03; Third Quarter Non-GAAP Adjusted Net Income of $21.7 Million and Non-GAAP Adjusted EPS of $0.18 Third2 Quarter Non-GAAP Adjusted EBITDA Totaled $38.8 Million, Representing Year-over-Year Growth of 76% 22 AUSTIN, Texas, Feb. 3, 2026 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended Decemb ...

Key Takeaways Internet Software companies saw mixed Q4 2025 revenues as enterprises stayed cautious on IT spending.Cloud adoption, SaaS subscriptions and AI features supported customer engagement and renewals.Software consolidation, pricing pressure and macro headwinds weighed on growth across the industry.Internet Software industry stocks' fourth-quarter 2025 results are anticipated to reflect evolving enterprise software adoption patterns, subscription model resilience and ongoing platform consolidation t ...

Key Takeaways Digital Turbine will report fiscal Q3 results Feb. 3, with EPS expected at $0.16, up 23% y/y.APPS ODS revenue rose 17% in Q2, with international markets contributing over 25% of segment revenue.APPS's AGP returned to growth in Q2, supported by platform integration and deeper impressions.Digital Turbine (APPS) is slated to release third-quarter fiscal 2026 results on Feb. 3, 2026.The Zacks Consensus Estimate for earnings has remained steady at 16 cents per share in the past 30 days. The project ...

Core Viewpoint - Digital Turbine, Inc. will host a conference call to discuss its fiscal 2026 third quarter financial results and operational progress on February 3, 2026 [1]. Group 1: Conference Call Details - The conference call will take place at 4:30 PM ET / 1:30 PM PT and will be hosted by CEO Bill Stone and CFO Steve Lasher [1]. - Access to the call will be available via a webcast link and by dialing specific phone numbers for both U.S. and international participants [1]. - A playback of the call will be available until February 10, 2026, with dedicated phone numbers for accessing the replay [2]. Group 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's platform 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 offices worldwide [3].

Group 1 - NICE, Digital Turbine, and Kimball Electronics are currently rated as Zacks Rank 1 (Strong Buy) [1] - Long-term earnings growth rates for Advanced Energy Industries, Digital Turbine, and Kimball Electronics are projected at 33.4%, 42.4%, and 20% respectively [2] - Over the past year, shares of Advanced Energy Industries, Digital Turbine, and Kimball Electronics have appreciated by 90.4%, 181.3%, and 52.5% respectively [2] Group 2 - NICE shares have decreased by 37.2% over the past year, underperforming sector peers due to macro challenges and competition [3] - AI-driven cloud revenue for NICE increased by 13% to $563 million, with CXone and Cognigy contributing to strong bookings and ARR growth [3] - NICE projects cloud revenue growth of 12-13% for 2025 and expects EPS to be between $12.18 and $12.32, reflecting a 10% year-over-year increase [3]