Digital Turbine (APPS) investor relations material

Executive summary

• Revenue for the quarter reached $151.4 million, up 12–12.4% year-over-year, with strong demand, global supply expansion, and disciplined execution driving results above expectations.

• GAAP net income was $5.1 million, reversing a net loss of $23.1 million in the prior year; non-GAAP net income was $21.7 million.

• Adjusted EBITDA grew 76% year-over-year to $39 million, with a 26% margin and $3.5 million in one-time benefits.

• Major refinancing completed, replacing the senior credit facility with a $430 million term loan and issuing new equity through an at-the-market offering.

• Diversification across products and geographies, improved AI and machine learning integration, and significant deleveraging of the balance sheet were key achievements.

Financial highlights

• Quarterly revenue was $151.4 million, up from $134.6 million year-over-year; nine-month revenue reached $422.7 million.

• ODS revenue was $99.6 million (up 9% year-over-year); AGP revenue was $52.6 million (up 19% year-over-year).

• Non-GAAP gross margin improved to 49% from 44% a year ago; free cash flow was $6.4 million.

• GAAP EPS was $0.03; non-GAAP EPS was $0.18.

• Operating income was $21.7 million, reversing a loss of $12.8 million in the prior year.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $553–$558 million; Adjusted EBITDA guidance increased to $114–$117 million.

• The midpoint of guidance represents a $10 million increase in revenue and over $13 million increase in EBITDA from prior outlook.

• The company expects to meet working capital and business requirements for at least 12 months, assuming successful refinancing.