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1. Company Snapshot

1.a. Company Description

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs).The company operates through three segments: On Device Media, In App Media – AdColony, and In App Media – Fyber.Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising, and sponsored and editorial content media.


The company also provides an end-to-end platform for brands, agencies, publishers, and application developers to deliver advertising to consumers on mobile devices; and a platform that allows mobile application developers and digital publishers to monetize their content through display, native, and video advertising.It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America.The company is headquartered in Austin, Texas.

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1.b. Last Insights on APPS

Digital Turbine's recent performance was driven by robust advertising demand, international expansion, and strategic partnerships. The company's fourth-quarter revenue totaled $119.2 million, representing a 6% year-over-year growth. Non-GAAP adjusted EBITDA2 totaled $20.5 million, a 66% year-over-year increase. The company's strong financial results were likely fueled by its rich partner base and ODS momentum. Digital Turbine's transformation is progressing, with the company's advertising technology segment showing significant growth. The company's international expansion and strategic partnerships are also contributing to its growth.

1.c. Company Highlights

2. Digital Turbine's Q2 FY2026 Earnings: A Strong Upswing

Digital Turbine reported a robust fiscal 2026 second quarter, with revenue reaching $140.4 million, representing an 18% year-over-year growth, and adjusted EBITDA of $27.2 million, up 78% year-over-year. The company's earnings per share (EPS) came in at $0.15, significantly beating estimates of $0.06. The On Device Solutions business generated $96.5 million in revenue, up 17% year-over-year, while the Application Growth Platform business returned to year-over-year growth, posting $44.7 million in revenue, up 20% year-over-year.

Publication Date: Nov -21

📋 Highlights
  • Revenue Growth:: $140.4 million, up 18% year-over-year.
  • Adjusted EBITDA Surge:: $27.2 million, 78% year-over-year increase.
  • International ODS Growth:: Revenue surged over 80% year-over-year to record levels.
  • On Device Solutions (ODS):: Generated $96.5 million, 17% year-over-year growth.
  • Application Growth Platform (AGP):: Revenue rose 20% to $44.7 million, returning to year-over-year growth.

Operational Highlights and Strategic Investments

The company's international ODS revenue reached a record high, surging more than 80% year-over-year, driven by its focus on innovation and strategic investments. Digital Turbine's unique advantages, such as its AI machine learning platform and first-party data, position the company to capture a meaningful share of the $1 trillion mobile-first market opportunity. As Bill Stone emphasized, the company's focus on innovation, operational discipline, and strategic investments is driving sustained profitable growth.

Growth Prospects and Competitive Landscape

Analysts estimate next year's revenue growth at 11.0%, indicating a continued upward trajectory. The company's successful debt refinancing through a new 4-year term loan facility provides additional flexibility and a stronger balance sheet to support growth initiatives. The competitive landscape remains relatively stable, with less competition on the On Device side and a focused approach on connecting demand to supply on the AGP side.

Valuation and Future Outlook

With a P/S Ratio of 0.85 and EV/EBITDA of 9.84, the company's valuation appears reasonable, considering its growth prospects. The company's ROE is currently negative at -50.14%, but this is expected to improve as the company continues to grow. As Digital Turbine continues to execute on its strategic plans, investors will be watching closely for further progress in the coming quarters.

3. NewsRoom

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APPS' AGP Growth Fueled by Rising Ad Impressions: What's Next?

Dec -04

Source: zacks.com

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Digital Turbine's ODS Growth Fueled by Ad Demand: What's Next?

Dec -03

Source: zacks.com

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AppLovin Corporation (APP) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Should You Buy, Sell or Hold APPS Stock After a 222% Surge in a Year

Dec -02

Source: zacks.com

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Digital Turbine: Deep Value Buy Opportunity - Compelling Ad-Tech Growth Prospects

Nov -20

Source: seekingalpha.com

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Connor Clark & Lunn Investment Management Ltd. Increases Holdings in Digital Turbine, Inc. $APPS

Nov -17

Source: defenseworld.net

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Digital Turbine to Participate in Upcoming Investor Conferences

Nov -13

Source: prnewswire.com

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Digital Turbine: Unloved Turnaround Continues To Gather Pace

Nov -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.37%)

6. Segments

On Device Solutions

Expected Growth: 15.4%

Growing demand for mobile apps, increasing adoption of digital solutions, and rising need for mobile operators and OEMs to monetize apps drive the growth of On Device Solutions from Digital Turbine, Inc.

App Growth Platform

Expected Growth: 15.4%

The growth of Digital Turbine's App Growth Platform is driven by the increasing demand for mobile app advertising and monetization solutions, as well as the rising need for app developers to acquire, engage, and retain users in a competitive market.

Elimination

Expected Growth: 12.4%

The elimination of redundant data points from Digital Turbine, Inc. is expected to drive growth, as it enhances data quality, reduces storage needs, and improves overall data management efficiency, leading to increased adoption in the industry.

7. Detailed Products

SingleTap

A mobile advertising platform that enables advertisers to reach their target audience through interactive and engaging ad experiences.

Ignite

A mobile app discovery and distribution platform that helps app developers reach a wider audience.

Aurora

A mobile app analytics and attribution platform that provides insights into user behavior and app performance.

Fyber

A mobile advertising platform that enables app developers to monetize their apps through video, display, and rewarded ads.

8. Digital Turbine, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Digital Turbine, Inc. operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand recognition and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Digital Turbine, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are highly customized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Digital Turbine, Inc. relies on a few key suppliers for its products and services. While the company has some bargaining power due to its size and scale, suppliers still have some leverage in negotiations.

Threat Of New Entrants

The digital media and entertainment industry is highly competitive, and new entrants can easily disrupt the market. Digital Turbine, Inc. must continually innovate and adapt to stay ahead of new competitors.

Intensity Of Rivalry

The digital media and entertainment industry is highly competitive, with many established players and new entrants vying for market share. Digital Turbine, Inc. must continually innovate and adapt to stay ahead of its competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.65%
Debt Cost 7.42%
Equity Weight 59.35%
Equity Cost 16.63%
WACC 12.89%
Leverage 68.49%

11. Quality Control: Digital Turbine, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Vacasa

A-Score: 4.4/10

Value: 7.5

Growth: 3.6

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Expensify

A-Score: 3.7/10

Value: 8.5

Growth: 2.7

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Cerence

A-Score: 3.7/10

Value: 7.0

Growth: 1.1

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Sprout Social

A-Score: 3.5/10

Value: 6.7

Growth: 6.0

Quality: 4.6

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Digital Turbine

A-Score: 3.4/10

Value: 6.0

Growth: 3.4

Quality: 1.6

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

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Upland Software

A-Score: 3.0/10

Value: 7.6

Growth: 3.1

Quality: 2.2

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.01$

Current Price

5.01$

Potential

-0.00%

Expected Cash-Flows