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APPS Q4 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
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Key Takeaways
Digital Turbine posted Q4 FY2026 revenues of $142.6M, up 19.6% year over year.
APPS reported adjusted EBITDA of $31.4M, rising 53% from the year-ago quarter.
Digital Turbine expects FY2027 revenues of $630M-$650M with EBITDA of $135M-$145M.
Digital Turbine (APPS - Free Report) delivered fourth-quarter fiscal 2026 adjusted earnings of 16 cents per share, up 60% year over year. The figure beat the Zacks Consensus Estimate by 77.8%.
Net revenues totaled $142.55 million, up 19.6% from the year-ago quarter and surpassing the consensus estimate of $133.23 million by about 7%. Strength in the App Growth Platform and a sharp year-over-year jump in adjusted EBITDA were key highlights.
By segment, Digital Turbine’s On Device Solutions generated $91.0 million of net revenues before intercompany eliminations, rising 5% year over year. This performance signaled steadier device-level demand and execution across distribution channels, even as the company continues to optimize its partner mix.
The share price of Digital Turbine is up 5.71% at the time of writing this article.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
The non-GAAP gross margin expanded 200 basis points (bps) year over year to 50%.
Sales and marketing expenses, as a percentage of revenues, decreased 10 bps from the year-ago quarter’s level to 10.3%.
General and administrative expenses, as a percentage of revenues, decreased from the year-ago quarter’s level of 33.5% to 23.9%.
Product development expenses, as a percentage of revenues, decreased 50 bps to 6.2%.
Non-GAAP EBITDA was $31.4 million as compared with $20.5 million in the year-ago quarter, indicating an increase of 53% year over year.
Digital Turbine reported a non-GAAP operating income of $10.5 million, up from an operating loss of $11.7 million reported in the year-ago quarter, reflecting the combined impact of higher scale and better expense discipline.
APPS’ Balance Sheet
As of March 31, 2026, cash and cash equivalents (including restricted cash) were $38 million compared with $40 million as of Dec. 31, 2025.
In the reported quarter, the company generated cash flow from operations of $4.38 million compared with $14.17 million in the previous quarter.
In the reported quarter, the company reported free cash flow burn of $3 million compared with $6.4 million in the previous quarter.
APPS Initiates Fiscal 2027 Guidance
Management pointed to momentum exiting fiscal 2026, improved execution and a stronger operating model as key supports for the outlook. The guidance implies a higher profitability profile compared with the prior year, underscoring that the company’s turnaround efforts are translating into more durable earnings power.
For fiscal 2027, APPS expects non-GAAP revenues between $630 million and $650 million and adjusted EBITDA in the range of $135 million to $145 million.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Shutterstock
APPS Q4 Earnings Beat Estimates, Revenues Up Y/Y, Shares Rise
Key Takeaways
Digital Turbine (APPS - Free Report) delivered fourth-quarter fiscal 2026 adjusted earnings of 16 cents per share, up 60% year over year. The figure beat the Zacks Consensus Estimate by 77.8%.
Net revenues totaled $142.55 million, up 19.6% from the year-ago quarter and surpassing the consensus estimate of $133.23 million by about 7%. Strength in the App Growth Platform and a sharp year-over-year jump in adjusted EBITDA were key highlights.
By segment, Digital Turbine’s On Device Solutions generated $91.0 million of net revenues before intercompany eliminations, rising 5% year over year. This performance signaled steadier device-level demand and execution across distribution channels, even as the company continues to optimize its partner mix.
The share price of Digital Turbine is up 5.71% at the time of writing this article.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote
APPS Q4 in Detail
The non-GAAP gross margin expanded 200 basis points (bps) year over year to 50%.
Sales and marketing expenses, as a percentage of revenues, decreased 10 bps from the year-ago quarter’s level to 10.3%.
General and administrative expenses, as a percentage of revenues, decreased from the year-ago quarter’s level of 33.5% to 23.9%.
Product development expenses, as a percentage of revenues, decreased 50 bps to 6.2%.
Non-GAAP EBITDA was $31.4 million as compared with $20.5 million in the year-ago quarter, indicating an increase of 53% year over year.
Digital Turbine reported a non-GAAP operating income of $10.5 million, up from an operating loss of $11.7 million reported in the year-ago quarter, reflecting the combined impact of higher scale and better expense discipline.
APPS’ Balance Sheet
As of March 31, 2026, cash and cash equivalents (including restricted cash) were $38 million compared with $40 million as of Dec. 31, 2025.
In the reported quarter, the company generated cash flow from operations of $4.38 million compared with $14.17 million in the previous quarter.
In the reported quarter, the company reported free cash flow burn of $3 million compared with $6.4 million in the previous quarter.
APPS Initiates Fiscal 2027 Guidance
Management pointed to momentum exiting fiscal 2026, improved execution and a stronger operating model as key supports for the outlook. The guidance implies a higher profitability profile compared with the prior year, underscoring that the company’s turnaround efforts are translating into more durable earnings power.
For fiscal 2027, APPS expects non-GAAP revenues between $630 million and $650 million and adjusted EBITDA in the range of $135 million to $145 million.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Ciena (CIEN - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Advanced Energy Industries and Amphenol carry a Zacks Rank#2 (Buy) each, whereas Ciena sports a Zacks Rank#1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Advanced Energy Industries, Ciena and Amphenol are currently pegged at 30.1%, 59.6% and 24%, respectively.