Digital Turbine Earnings Beat, FY27 Guidance Tops Estimates

Digital Turbine, Inc. (NASDAQ: APPS) reported fiscal Q4 2026 results on May 26, 2026, exceeding expectations with consolidated net revenue of $142.5 million, up 20% year-over-year. The company also set fiscal 2027 revenue and adjusted EBITDA guidance above Street estimates, driven by growth in its on-device app platform and expanded use of artificial intelligence (AI) that boosted non-GAAP profitability.

Quarter and Full-Year Results

For the quarter ended March 31, 2026, Digital Turbine reported a GAAP net loss of $7.3 million and GAAP diluted loss per share of ($0.06). On a non-GAAP basis, adjusted net income was $19.7 million, or $0.16 per diluted share, while adjusted EBITDA rose 53% year-over-year to $31.4 million.

For the fiscal year ended March 31, 2026, net revenue reached $565.3 million, up 15% year-over-year. The company posted a GAAP net loss of $37.7 million, or ($0.33) per share. Non-GAAP adjusted net income was $64.9 million, or $0.56 per diluted share, and adjusted EBITDA increased 69% to $122.5 million.

These results outperformed analyst consensus, which had forecast non-GAAP EPS of $0.09 and revenue between $133.2 million and $135.9 million. Digital Turbine’s non-GAAP EPS exceeded estimates by $0.07, and revenue surpassed projections by roughly $6.6 million to $9.3 million.

FY2027 Guidance and Growth Drivers

The company provided fiscal 2027 guidance for net revenue between $630 million and $650 million and non-GAAP adjusted EBITDA of $135 million to $145 million, implying 11% to 15% revenue growth over fiscal 2026. Management attributed this outlook to continued momentum in the on-device app growth platform, including new device placements and deeper integration with carrier and original equipment manufacturer (OEM) partners.

Expanded use of AI across operations and advertising technology is expected to enhance ad targeting, monetization, and gross margins. CEO Bill Stone said, "Fiscal 2026 was a successful year for Digital Turbine."

Business Model and Risk Factors

In its Form 10-K filed after the earnings release, Digital Turbine described its mobile growth and advertising platform, which relies on partnerships with mobile operators, OEMs, and app developers for device preloads and on-device placements.

The filing highlighted key risks, including dependence on a limited number of carrier and OEM partners, cyclicality in mobile advertising, competitive intensity, concentration of large customers, and evolving data privacy and regulatory compliance requirements. It also noted the company’s debt levels and exposure to interest-rate fluctuations.

The earnings release and 10-K did not disclose any new acquisitions, divestitures, regulatory approvals, or enforcement actions related to the reported results.