Digital Turbine Earnings Rise After Q1 Beat
Digital Turbine earnings beat expectations and raised FY27 guidance to $650-$670 million, boosting revenue momentum and trader positioning.
KEY TAKEAWAYS
- Raised FY27 guidance to $650-$670 million and adjusted EBITDA to $145-$155 million.
- Q1 revenue $166 million, +27.0% YoY; adjusted EBITDA $42.5 million, 25.6% margin.
- Free cash flow $11.3 million and net leverage reduced to 2.5x.
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Digital Turbine, Inc. (Nasdaq: APPS) reported fiscal first-quarter 2027 results in a press release on Aug. 4, 2026, beating expectations and raising its full-year outlook. The company cited momentum in its On Device Solutions business and improving cash generation.
Quarter Results and Profitability
For the quarter ended June 30, 2026, Digital Turbine reported net revenue of $166 million, up 27% year over year. Non-GAAP adjusted EBITDA rose 69% to $42.5 million, lifting the adjusted EBITDA margin to 25.6% from 19.2% a year earlier. Non-GAAP adjusted net income was $24.1 million, or $0.19 per diluted share. The GAAP net loss narrowed to $3.2 million, or $(0.03) per share, compared with a loss of $14.1 million in the prior-year quarter.
Segments, Cash Flow, and Guidance
The On Device Solutions segment generated $110 million in net revenue, up 15% year over year, while the App Growth Platform contributed $56.6 million, rising 56%. The company raised its fiscal 2027 guidance to revenue of $650 million to $670 million and non-GAAP adjusted EBITDA of $145 million to $155 million.
Digital Turbine reported non-GAAP free cash flow of $11.3 million for the quarter and cash from operating activities of $17.9 million. Cash and equivalents totaled $43.2 million at quarter-end, up about $5 million from the fiscal year start. The company reduced debt by more than $8 million during the quarter, lowering its non-GAAP net leverage ratio to 2.5 times. Net interest expense was $12.9 million, and the company recorded an unrealized loss on derivatives of $10.8 million. Total liabilities stood at $652.9 million.
Sell-side analysts and financial coverage characterized the quarter as a beat versus consensus, highlighting the raised guidance as evidence of momentum in mobile advertising and app-growth operations. Management attributed margin expansion to operating leverage, an improved product mix, and efficiencies in distribution and advertising demand. The updated guidance implies continued double-digit revenue growth and further margin improvement through operating leverage for fiscal 2027.
