Digital Turbine (APPS) Q1 2025 earnings summary

Executive summary

• Revenue for the quarter was $118 million, up 5% sequentially but down 19.4% year-over-year, with a GAAP net loss of $25.2 million (EPS $(0.25)), compared to $8.4 million loss a year ago.

• Non-GAAP adjusted net income was $7.3 million (EPS $0.07), down from $18.2 million (EPS $0.18) year-over-year.

• Sequential growth in both On Device Solutions (ODS) and App Growth Platform (AGP) segments contributed to margin expansion, despite double-digit year-over-year declines due to weak device volumes and mobile ad market softness.

• Operational progress included new product launches, improved bidding capabilities, and consolidation of back-end systems.

• Operating expenses decreased year-over-year, but general and administrative expenses rose 7.5%.

Financial highlights

• Revenue was $118 million, up 5% sequentially and down 19.4% year-over-year; ODS revenue was $80.7 million (down 18% YoY), AGP revenue was $38.4 million (down 22% YoY).

• Non-GAAP adjusted EBITDA was $14.5 million, up 18% sequentially but down 46% year-over-year.

• Consolidated gross margin was 46%, a 50 basis point sequential expansion.

• Cash and equivalents at quarter-end were $35.7 million, with long-term debt of $393.8 million.

• Operating cash flow was negative $1.35 million, a $10 million sequential improvement but down from $1.32 million a year ago.

Outlook and guidance

• Fiscal 2025 revenue guidance reaffirmed at $540–$560 million, with non-GAAP adjusted EBITDA projected at $85–$95 million.

• Management expects continued top-line growth and margin expansion in the second half of the year, driven by new products, expanded media relationships, and improved RPD.

• Sufficient liquidity is anticipated for at least the next 12 months, but future performance depends on market conditions and access to capital.