Digital Turbine (APPS) Q1 2026 earnings summary

Executive summary

• Revenue for fiscal Q1 2026 was $130.9 million, up 11% year-over-year, driven by strong On Device Solutions growth and improved device sales, while App Growth Platform revenue declined.

• Adjusted EBITDA rose 73% year-over-year to $25.1 million, reflecting operational improvements and business momentum.

• GAAP net loss narrowed to $14.1 million from $25.2 million year-over-year, with non-GAAP net income at $5.8 million.

• Brand advertiser campaigns increased nearly 50% quarter-over-quarter, and the transformation program completed in Q4 FY25 targets over $25 million in annual cash expense savings.

• Management raised full-year guidance, citing favorable macro trends and regulatory momentum for alternative app distribution.

Financial highlights

• Q1 2026 revenue: $130.9 million, up from $118.0 million year-over-year.

• Adjusted EBITDA: $25.1 million, up from $14.5 million year-over-year.

• Non-GAAP gross margin improved to 47% from 46% year-over-year.

• Free cash flow was $1.4 million, up $7 million year-over-year.

• Net loss: $14.1 million ($0.13/share), improved from $25.2 million ($0.25/share) year-over-year.

Outlook and guidance

• Full-year fiscal 2026 revenue guidance raised to $525–$535 million, and adjusted EBITDA to $90–$95 million.

• Midpoint increases represent $10 million more in revenue and $5 million more in EBITDA versus prior outlook.

• Management is actively seeking to refinance $411 million credit facility before August 29, 2025.

• Transformation program expected to yield significant cost savings.