Digital Turbine(APPS) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenue totaled $119.2 million, representing year-over-year growth of 6% compared to $112.2 million in the fourth quarter of fiscal 2024[2][4] - Fourth quarter GAAP net loss was $18.8 million, or ($0.18) per share, significantly improved from a net loss of $236.5 million, or ($2.32) per share, in the same quarter last year[2][5] - Non-GAAP adjusted net income for the fourth quarter was $10.8 million, or $0.10 per share, compared to $12.6 million, or $0.12 per share, in the fourth quarter of fiscal 2024[2][6] - Non-GAAP adjusted EBITDA for the fourth quarter was $20.5 million, representing a year-over-year increase of 66% from $12.3 million in the fourth quarter of fiscal 2024[2][6] - Fiscal year 2025 revenue totaled $490.5 million, with a GAAP net loss of $92.1 million, or ($0.89) per share, compared to a net loss of $420.4 million, or ($4.16) per share, in fiscal 2024[2][7] - Non-GAAP adjusted EBITDA for fiscal year 2025 was $72.3 million, down from $92.4 million in fiscal 2024[2][8] - Consolidated net revenue for the year ended March 31, 2025, was $490,506 thousand, a decrease of 10% from $544,482 thousand in 2024[39] Revenue Breakdown - Total On Device Solutions revenue for fiscal year 2025 was $341.6 million, while App Growth Platform revenue was $153.2 million[6] - Net revenue for the three months ended March 31, 2025, was $119,152 thousand, an increase from $112,223 thousand in the same period of 2024, representing a growth of 8.6%[31] - On Device Solutions revenue increased by 11% to $86,832 thousand for the three months ended March 31, 2025, compared to $78,504 thousand in the same period of 2024[37] - App Growth Platform revenue decreased by 3% to $33,250 thousand for the three months ended March 31, 2025, down from $34,437 thousand in 2024[37] Cost and Expenses - The total costs of revenue and operating expenses for the three months ended March 31, 2025, were $130,844 thousand, significantly lower than $320,062 thousand for the same period in 2024, indicating a reduction of 59.1%[31] - The company reported a total of $39,464 thousand in product development expenses for the year ended March 31, 2025, down from $54,157 thousand in 2024[39] - General and administrative expenses increased to $173,647 thousand for the year ended March 31, 2025, compared to $169,617 thousand in 2024[39] Cash Flow and Assets - Cash and cash equivalents and restricted cash at the end of the period on March 31, 2025, were $40,084 thousand, up from $33,605 thousand at the end of March 31, 2024, reflecting an increase of 19.0%[35] - Total assets decreased to $812,854 thousand as of March 31, 2025, from $865,540 thousand as of March 31, 2024, a decline of 6.1%[33] - Long-term debt, net of debt issuance costs, increased to $408,687 thousand as of March 31, 2025, compared to $383,490 thousand as of March 31, 2024, an increase of 6.6%[33] Loss and Improvement - The net loss attributable to Digital Turbine, Inc. for the three months ended March 31, 2025, was $18,826 thousand, compared to a net loss of $236,506 thousand in the same period of 2024, showing an improvement of 92.0%[31] - The company experienced a comprehensive loss of $18,000 thousand for the three months ended March 31, 2025, compared to a comprehensive loss of $238,968 thousand for the same period in 2024, reflecting a reduction of 92.5%[31] - The company reported a basic net loss per common share of $0.18 for the three months ended March 31, 2025, compared to a basic net loss per common share of $2.32 for the same period in 2024, indicating a significant improvement[31] Future Outlook - The company expects fiscal year 2026 revenue to be between $515 million and $525 million, with non-GAAP adjusted EBITDA projected between $85 million and $90 million[12] - The CEO highlighted strong advertiser and partner demand, along with profit margin expansion, as key drivers for continued growth in fiscal 2026[3] - The company is making meaningful progress in utilizing AI and Machine Learning to optimize first-party data and explore new opportunities for Alternative Apps distribution[3] Shareholder Information - The weighted-average common shares outstanding for the three months ended March 31, 2025, were 105,427 thousand, compared to 101,974 thousand for the same period in 2024, an increase of 3.4%[31] - The company reported a foreign currency translation gain of $826 thousand for the three months ended March 31, 2025, compared to a loss of $2,462 thousand for the same period in 2024, indicating a positive shift in foreign exchange impact[31] Non-GAAP Metrics - Non-GAAP gross profit for the three months ended March 31, 2025, was $56,604 thousand, representing a gross profit margin of 48%, up from 46% in the same period of 2024[39] - Non-GAAP adjusted net income for the year ended March 31, 2025, was $36,837 thousand, down from $60,272 thousand in 2024[41] - Non-GAAP adjusted EBITDA for the three months ended March 31, 2025, increased to $20,462 thousand, compared to $12,301 thousand in the same period of 2024[43] - Non-GAAP free cash flow for the three months ended March 31, 2025, was $5,466 thousand, a significant improvement from a cash outflow of $15,637 thousand in 2024[45]