Digital Turbine(US:APPS)2025-11-04 21:06Financial 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]