Back to top

Image: Bigstock

Digital Turbine to Report Q4 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Digital Turbine (APPS - Free Report) is set to report fourth-quarter fiscal 2025 results on May 27.

The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at 5 cents per share, unchanged over the past 30 days. This indicates a decline of 58.33% from the year-ago quarter’s reported figure.

APPS’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 281.67%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Let us see how things have shaped up for the upcoming announcement.

Digital Turbine, Inc. Price and EPS Surprise

 

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote

Key Factors to Note for APPS’ Q4 Results

Digital Turbine is expected to have benefited from strong international On-Device Solutions (“ODS”) momentum in the fourth quarter of fiscal 2025, following a 100% year-over-year revenue surge in the third quarter, driven by robust advertiser demand and improved execution. This sustained increase, particularly in international markets, is likely to have contributed to higher revenues per device and overall top-line expansion.

Digital Turbine is expected to have realized growth through its expanding global device partnerships, which boosted international revenue per device. Stronger ties with Motorola (MSI - Free Report) , Nokia (NOK - Free Report) and T-Mobile US (TMUS - Free Report) helped grow its reach and user engagement across more markets.

The company has been focused on expanding and deepening its device footprint. Despite soft device sales in the United States, the company has made notable progress internationally through partnerships with Motorola, Nokia, ONE Store, Xiaomi and Telecom Italia Brazil. Additionally, its recently announced partnership with T-Mobile in the United States, alongside continued collaboration with Motorola and Nokia, is expected to have supported growth in the to-be-reported quarter by enhancing scale and platform reach.

However, the migration from waterfall to SDK bidding is anticipated to have negatively impacted Digital Turbine’s fourth-quarter fiscal 2025 performance. This transition to more brand-focused AI and machine learning has disrupted the legacy performance of Demand-Side Platforms (DSPs), which has likely contributed to a slowdown in exchange monetization.

Continued softness in U.S. device volumes is expected to have pressured the company in the upcoming quarter. While international markets have shown robust growth, the persistent weakness in U.S. device sales is expected to have offset market opportunities and monetization efforts in the quarter under review.

Zacks Rank

Digital Turbine currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Published in