We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
APPS Q3 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
Read MoreHide Full Article
Key Takeaways
APPS posted Q3 EPS of 16 cents, beating estimates by 77.78%, as non-GAAP revenue climbed 12% year over year.
Digital Turbine saw On Device Solutions revenue rise 9% Y/Y, while App Growth Platform revenue jumped 19%.
APPS reported a 520-bps gross margin expansion and 76% growth in non-GAAP EBITDA year over year.
Digital Turbine (APPS - Free Report) shares have declined 1.8% since the company reported its third-quarter fiscal 2026 results on Feb. 3. In the reported quarter, Digital Turbine experienced softness in U.S. device volumes, which impacted the supply side of its operations.
The company reported third-quarter fiscal 2026 non-GAAP earnings of 16 cents per share, which beat the Zacks Consensus Estimate by 77.78%. The company reported non-GAAP earnings of 5 cents in the year-ago quarter.
The company reported non-GAAP revenues of $151.4 million, which increased 12% on a year-over-year basis. The growth was driven by strong demand, expanding global supply and great execution by the team.
Segment-wise, revenues from the On Device Solutions contributed 65.8% to total revenues in the third quarter. The figure increased approximately 9% year over year to nearly $100 million. App Growth Platform revenues contributed 34.8% to total revenues. The figure increased 19% year over year to $53 million.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
The share price of Digital Turbine is down 5.06% at the time of writing this article.
APPS Q3 Details
The non-GAAP gross margin expanded 520 basis points (bps) year over year to 49%.
Sales and marketing expenses, as a percentage of revenues, decreased 200 bps from the year-ago quarter’s level to 9.5%.
General and administrative expenses, as a percentage of revenues, decreased from the year-ago quarter’s level of 31.8% to 19.1%.
Product development expenses, as a percentage of revenues, decreased 100 bps to 6.5%.
Non-GAAP EBITDA was $38.8 million as compared with $22 million in the year-ago quarter, indicating an increase of 76% year over year.
Digital Turbine reported a non-GAAP operating margin of 14.3%, up from an operating loss of 9.5% reported in the year-ago quarter.
Balance Sheet
As of Dec. 31, 2025, cash and cash equivalents (including restricted cash) were $40 million compared with $1 million as of Sept. 30, 2025.
In the reported quarter, the company generated a cash flow from operations of $14.17 million compared with $14.46 million in the previous quarter.
In the reported quarter, the company generated free cash flow of $6.4 million compared with $7 million in the previous quarter.
APPS FY26 Guidance
For the full fiscal year 2026, APPS expects non-GAAP revenues between $553 million and $558 million. and adjusted EBITDA in the range of $114 million to $117 million.
APPS’ Zacks Rank & Stocks to Consider
Digital Turbine currently carries a Zacks Rank #3 (Hold).
Shares of Ciena have gained 184.7% in the past 12-month period. CIEN is likely to report its first-quarter fiscal 2026 results on Mar. 10, 2026.
Shares of Advanced Energy Industries have gained 123.4% in the past 12-month period. AEIS is likely to report its fourth-quarter 2025 results on Feb. 10, 2026.
Shares of MKS have gained 97.3% in the past 12-month period. MKSI is likely to report its fourth-quarter 2025 results on Feb. 17, 2026.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
APPS Q3 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
Key Takeaways
Digital Turbine (APPS - Free Report) shares have declined 1.8% since the company reported its third-quarter fiscal 2026 results on Feb. 3. In the reported quarter, Digital Turbine experienced softness in U.S. device volumes, which impacted the supply side of its operations.
The company reported third-quarter fiscal 2026 non-GAAP earnings of 16 cents per share, which beat the Zacks Consensus Estimate by 77.78%. The company reported non-GAAP earnings of 5 cents in the year-ago quarter.
The company reported non-GAAP revenues of $151.4 million, which increased 12% on a year-over-year basis. The growth was driven by strong demand, expanding global supply and great execution by the team.
Segment-wise, revenues from the On Device Solutions contributed 65.8% to total revenues in the third quarter. The figure increased approximately 9% year over year to nearly $100 million. App Growth Platform revenues contributed 34.8% to total revenues. The figure increased 19% year over year to $53 million.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote
The share price of Digital Turbine is down 5.06% at the time of writing this article.
APPS Q3 Details
The non-GAAP gross margin expanded 520 basis points (bps) year over year to 49%.
Sales and marketing expenses, as a percentage of revenues, decreased 200 bps from the year-ago quarter’s level to 9.5%.
General and administrative expenses, as a percentage of revenues, decreased from the year-ago quarter’s level of 31.8% to 19.1%.
Product development expenses, as a percentage of revenues, decreased 100 bps to 6.5%.
Non-GAAP EBITDA was $38.8 million as compared with $22 million in the year-ago quarter, indicating an increase of 76% year over year.
Digital Turbine reported a non-GAAP operating margin of 14.3%, up from an operating loss of 9.5% reported in the year-ago quarter.
Balance Sheet
As of Dec. 31, 2025, cash and cash equivalents (including restricted cash) were $40 million compared with $1 million as of Sept. 30, 2025.
In the reported quarter, the company generated a cash flow from operations of $14.17 million compared with $14.46 million in the previous quarter.
In the reported quarter, the company generated free cash flow of $6.4 million compared with $7 million in the previous quarter.
APPS FY26 Guidance
For the full fiscal year 2026, APPS expects non-GAAP revenues between $553 million and $558 million. and adjusted EBITDA in the range of $114 million to $117 million.
APPS’ Zacks Rank & Stocks to Consider
Digital Turbine currently carries a Zacks Rank #3 (Hold).
Ciena (CIEN - Free Report) , Advanced Energy Industries (AEIS - Free Report) , and MKS (MKSI - Free Report) are some other better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Ciena and MKS presently sport a Zacks Rank #1 (Strong Buy) each, while Advanced Energy Industries presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Ciena have gained 184.7% in the past 12-month period. CIEN is likely to report its first-quarter fiscal 2026 results on Mar. 10, 2026.
Shares of Advanced Energy Industries have gained 123.4% in the past 12-month period. AEIS is likely to report its fourth-quarter 2025 results on Feb. 10, 2026.
Shares of MKS have gained 97.3% in the past 12-month period. MKSI is likely to report its fourth-quarter 2025 results on Feb. 17, 2026.