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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 Q3 FY2026 Earnings: A Strong Performance

Digital Turbine, Inc. reported a robust financial performance in its Fiscal 2026 Third Quarter Earnings Conference Call, with revenue reaching $151.4 million, a 12% year-over-year growth. EBITDA stood at $39 million, up 76% year-over-year, resulting in EBITDA margins of 26%. Earnings per share (EPS) was $0.18, beating the expected EPS of $0.16. The strong performance was driven by the On Device Solutions (ODS) and Application Growth Platform (AGP) segments, with revenues of $99.6 million and $52.6 million, respectively.

Publication Date: Mar -09

📋 Highlights
  • Revenue and EBITDA Growth:: Revenue reached $151.4M (+12% YoY), EBITDA hit $39M (+76% YoY) with 26% margins.
  • AGP Segment Outperformance:: AGP revenue grew 19% to $52.6M, outpacing the market by 2x (20% growth vs. mid/high single digits).
  • Balance Sheet Strength:: Debt leverage ratio reduced to 3x from >5x, cash balance at $40M, and $355M total debt.
  • Full-Year Guidance Raised:: Revenue projected $553–$558M, adjusted EBITDA $114–$117M.
  • Strategic Priorities:: Focus on first-party data, flywheel effect, brand scaling, IGNITE services, and alternative app opportunities.

Segmental Performance

The ODS segment grew 9% year-over-year, while the AGP segment recorded a 19% growth. The company's diversified revenue streams, improved use of AI and machine learning tools, and a strong balance sheet contributed to the overall growth. As the company mentioned, "We're outgrowing the market, with a 20% growth on the AGP side, 2x the market."

Guidance and Outlook

The company raised its full-year revenue and adjusted EBITDA guidance, expecting revenue between $553 million and $558 million and adjusted EBITDA between $114 million and $117 million. The business momentum is expected to continue, driven by a healthy mix of disciplined execution, innovation, and favorable industry dynamics.

Valuation and Financial Health

With a current P/S Ratio of 0.92 and EV/EBITDA not directly available but an indication of the company's financial health can be gauged from its Net Debt / EBITDA ratio, which stands at around 3.97. The ROE is negative at -25.84%, but the ROIC is slightly positive at 0.11%. The company's strengthened balance sheet is reflected in its cash balance of $40 million and total debt of $355 million, resulting in a debt leverage ratio of roughly three turns, down from over five turns a year ago.

Future Prospects

The analysts' estimates and the company's guidance suggest a positive outlook. The expected revenue growth rate for the next year is 11.3%. With its diversified revenue streams and improved financial health, Digital Turbine is poised for continued growth. The current valuation multiples need to be compared with the industry average to understand what's priced in.

3. NewsRoom

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APPS vs. FFIV: Which Stock Should Value Investors Buy Now?

Apr -01

Source: zacks.com

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APPS vs. U: Which Stock Has an Edge in the AdTech Market?

Mar -27

Source: zacks.com

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APPS' Revenue Per Device in ODS Grows in Double Digits: What's Ahead?

Mar -26

Source: zacks.com

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APPS' AGP Business Shows Double-Digit Growth: Is it Sustainable?

Mar -24

Source: zacks.com

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Contrasting Digital Turbine (NASDAQ:APPS) and Elastic (NYSE:ESTC)

Mar -23

Source: defenseworld.net

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Digital Turbine to Participate in 38th Annual Roth Conference

Mar -18

Source: prnewswire.com

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APPS or FFIV: Which Is the Better Value Stock Right Now?

Mar -16

Source: zacks.com

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APPS Stock Declines 10% in a Month: Time to Buy, Sell or Hold?

Mar -12

Source: zacks.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

Stock-Card
Vacasa

A-Score: 4.7/10

Value: 7.6

Growth: 3.6

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Digital Turbine

A-Score: 3.9/10

Value: 5.1

Growth: 3.3

Quality: 4.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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Sprout Social

A-Score: 3.4/10

Value: 6.5

Growth: 6.0

Quality: 4.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Cerence

A-Score: 3.2/10

Value: 5.1

Growth: 3.8

Quality: 2.8

Yield: 0.0

Momentum: 7.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Expensify

A-Score: 3.2/10

Value: 8.7

Growth: 2.7

Quality: 4.0

Yield: 0.0

Momentum: 1.0

Volatility: 2.7

1-Year Total Return ->

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Upland Software

A-Score: 2.6/10

Value: 8.0

Growth: 3.1

Quality: 2.4

Yield: 0.0

Momentum: 1.0

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

3.39$

Current Price

3.39$

Potential

-0.00%

Expected Cash-Flows