Digital Turbine NASDAQ: APPS reported fourth-quarter and fiscal 2026 results that exceeded management’s expectations, with executives pointing to growth in its on-device business, a sharp acceleration in its app growth platform and increased use of artificial intelligence across the company’s operations and advertising technology.
Chief Executive Officer Bill Stone said the company’s June quarter was “off to a positive start” and that broader business momentum supported an annual outlook for fiscal 2027 calling for double-digit growth in both revenue and adjusted EBITDA.
Fiscal 2026 Revenue Rises 15%
For fiscal 2026, Stone said Digital Turbine generated revenue of $565 million, representing 15% year-over-year growth. He also said adjusted EBITDA increased nearly 70% from the prior year, which he said demonstrated “significant operating leverage” as the business scaled.
Chief Financial Officer Steve Lasher later detailed the company’s financial performance, reporting total net revenue of $565.3 million for the full year, up 15% year-over-year. Adjusted EBITDA totaled $122.5 million, up 69%. The company reported a GAAP net loss of $37.3 million, or $0.33 per share, while non-GAAP net income was $64.9 million, or $0.56 per share.
Free cash flow was $11.8 million for the year, an improvement of more than $21 million compared with the prior year, Lasher said.
Fourth-Quarter Results Show AGP Acceleration
In the fourth quarter, Digital Turbine reported total net revenue of $142.5 million, up 20% year-over-year. Lasher said On-Device Solutions net revenue was $91 million, up 5%, while App Growth Platform net revenue was $52.1 million, up 57%.
Lasher said the App Growth Platform segment posted its highest growth rate in more than three years. He attributed the performance to the company’s focus on using first-party data and AI-driven capabilities to improve outcomes for publishers and advertisers.
Adjusted EBITDA for the quarter was $31.4 million, up 53% year-over-year. Adjusted EBITDA margin expanded nearly 500 basis points to 22% compared with the year-earlier quarter. Non-GAAP gross margin was 50%, up from 48% a year ago, which Lasher said was driven mainly by favorable product and segment mix.
The company reported a fourth-quarter GAAP net loss of $7.3 million, or $0.06 per share. On a non-GAAP basis, net income was $19.7 million, or $0.16 per share, based on 122.8 million shares outstanding.
Management Cites Demand, Supply and First-Party Data
Stone said three primary drivers powered the company’s improved March-quarter performance: higher advertiser demand, increased supply and better use of first-party data in its AI and machine-learning platform.
Higher advertiser demand improved pricing and fill rates, particularly for premium placements, Stone said. He added that strong advertiser demand supported international revenue-per-device expansion in the On-Device Solutions business, which grew more than 40% year-over-year. The company also saw strong demand in its brand and DT Exchange businesses, each of which grew more than 50% year-over-year in the March quarter.
On the supply side, Stone said global devices grew more than 20% year-over-year, driven by strong volume from international partners. He also said App Growth Platform supply volumes increased impressions by more than 15%, supported by broader SDK distribution, performance in the APAC region and growth in non-gaming inventory.
Stone said the company’s use of first-party data in AI and machine-learning tools helped improve targeting and advertiser outcomes. He said rates in the App Growth Platform business were up 40% year-over-year, which he attributed to better targeting and AI capabilities.
Fiscal 2027 Outlook Calls for Continued Growth
Digital Turbine introduced fiscal 2027 guidance for revenue of $630 million to $650 million and adjusted EBITDA of $135 million to $145 million. Lasher said the outlook reflected stronger-than-expected fiscal 2026 performance and continued momentum in the June quarter to date.
Stone identified several growth drivers for the current fiscal year, including AI and data, the company’s supply-and-demand “flywheel,” expansion in the brand business, momentum in its Ignite platform and growth in alternative applications.
Stone said Digital Turbine currently has nearly 3 billion devices and more than 80,000 applications using its ad technology. He also highlighted international momentum in On-Device Solutions, citing Latin America and Europe, along with recent wins with partners such as Orange.
The CEO said the Ignite platform is also being used as a software enabler for distributing additional products on device screens, beyond Digital Turbine’s existing products. He cited examples such as SingleTap, out-of-the-box setups and notifications, and said the company is currently working in the U.S. with an AI-first partner distributing AI agents to devices.
AI Trends and CFO Transition
Stone described AI as a tailwind for the business, citing its role in workflow automation, improved customer outcomes and broader app creation. He said Digital Turbine grew revenue by more than $70 million over the past year while reducing headcount by 4%, aided by AI and automation in areas including quality assurance, back-office functions, campaign management, software development and data management.
Stone also said AI is contributing to a shift in consumer engagement from the open web toward applications. He cited market analysis showing worldwide app releases in the first quarter of 2026 were up 60% year-over-year across the Apple App Store and Google Play, and said the average consumer now spends five hours per day inside applications.
Addressing macroeconomic concerns, Stone said Digital Turbine’s mobile AI cloud business is more insulated than many companies from factors such as tariffs, energy prices, recessions, inflation and exposure to any single geography, though he noted that no business is fully insulated from macroeconomic conditions.
The company also announced a finance leadership change. Stone said Lasher will step down as chief financial officer and support a transition in June as he pursues another opportunity outside the company. Josh Kinsell, Digital Turbine’s chief accounting officer, will assume interim CFO duties.
Lasher said he was proud of the company’s progress, including improved platform performance, increased advertiser and publisher spending, and a stronger balance sheet following refinancing and deleveraging. Digital Turbine ended fiscal 2026 with $38 million in cash and total debt net of issuance costs of $361 million, down from $409 million at the start of the year. Lasher said the company intends to continue using free cash flow to reduce leverage in fiscal 2027.
The earnings call concluded without analyst questions during the question-and-answer session.
About Digital Turbine NASDAQ: APPS
Digital Turbine, Inc NASDAQ: APPS is a mobile technology company that streamlines content delivery and app advertising across connected devices. Its platform enables carriers, OEMs, app developers and advertisers to engage users through personalized app recommendations, in-app promotions and turnkey monetization solutions. By integrating software directly on smartphones and tablets, Digital Turbine simplifies the user journey from discovery to installation without requiring additional downloads or redirects through traditional app stores.
The company's flagship Ignite Platform offers end-to-end campaign management, combining demand-side advertising, real-time analytics and automated content fulfillment.
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