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Digital Turbine's Fiscal 2026 First Quarter Review

Digital Turbine, Inc. (Nasdaq: APPS) recently announced its financial performance for the first quarter of its fiscal year 2026, which concluded on June 30, 2025. The results reveal a notable growth pattern, providing insights into the company’s ongoing initiatives and market conditions.

Financial Highlights

In the first quarter, the company reported revenue of $130.9 million, marking an 11% increase compared to $118.0 million from the same period the previous year. This growth trajectory highlights Digital Turbine's ability to progress in a competitive mobile application distribution landscape.

Despite the substantial revenue increase, Digital Turbine experienced a GAAP net loss of $14.1 million, or ($0.13) per share, an improvement from last year's loss of $25.2 million, or ($0.25) per share. The company’s non-GAAP adjusted net income reported was $5.8 million, or $0.05 per share, compared to $7.3 million, or $0.07 per share, in the first quarter of fiscal 2025.

The adjustment reflects the company’s strategy of focusing on its core operating profitability as it navigates the complexities of the mobile advertising market. The non-GAAP adjusted EBITDA showed remarkable growth as well, reaching $25.1 million, which is a 73% rise from $14.5 million reported in the same quarter the previous year.

Management Commentary

Bill Stone, CEO of Digital Turbine, highlighted the continued positive momentum within the business. “I was pleased to see our business momentum continue to accelerate in the first quarter. Double-digit revenue growth year-over-year and a corresponding 73% increase in EBITDA during the quarter enable us to confidently raise our outlook for the fiscal year.”

Stone's remarks underline the strong demand for Digital Turbine’s Ignite Platform, improved device sales, and solid organizational execution as critical contributors to its enhanced financial performance. Looking ahead, the company aims to utilize its comprehensive first-party datasets to foster improved performance across artificial intelligence (AI) and machine learning (ML) applications for its clients. This approach is intended to boost advertisement distribution and overall operational efficiency.

Revenue Insights

The breakdown of revenue sources for the first quarter reveals that On Device Solutions accounted for $95.4 million while its App Growth Platform generated $36.3 million. These figures indicate the robust nature of Digital Turbine's offerings, as the demand for on-device marketing solutions continues to surge.

The year-on-year growth in revenue demonstrates the company’s positioning as a pivotal player in the mobile advertising and app distribution domains. Digital Turbine is riding the wave of increased smartphone usage and the rising significance of mobile content consumption, which are propelling its innovative solutions into mainstream acceptance.

Forward-Looking Statements

Digital Turbine has notably raised its expectations for the fiscal year 2026. The company anticipates revenue to fall between $525 million and $535 million and expects non-GAAP adjusted EBITDA in the range of $90 million to $95 million. However, the company refrained from providing a clear outlook on GAAP net income due to variabilities associated with stock-based compensation expenses, which fluctuate with the stock price.

This adjusted position underscores the management's confidence in Digital Turbine's growth trajectory and operational resilience amid evolving market conditions.

Summary

Digital Turbine's first-quarter results reflect a mix of challenges and achievements. With solid revenue performance and a keener focus on profitability, the company appears poised to leverage its capabilities in mobile advertising further. As it continues to navigate the shifting landscape of the tech industry, Digital Turbine's ongoing adaptations and strategic investments will be crucial in maintaining its competitive edge and meeting the demands of brands worldwide. This comprehensive financial health could be the foundation for further growth, aligning with technological advancements and market trends.