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APPS beat Q1 fiscal 2027 earnings and revenue estimates as sales rose 27% year over year.
Digital Turbine's App Growth Platform revenues jumped 56%, marking a second straight quarter above 50% growth.
APPS raised fiscal 2027 revenue and adjusted EBITDA guidance, citing momentum and AI-driven yield gains.
Digital Turbine (APPS - Free Report) delivered first-quarter fiscal 2027 adjusted earnings of 19 cents per share, up from 6 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 14 cents by 35.7%.
Net revenues totaled $166 million, which increased 27% from the year-ago quarter and surpassed the consensus estimate of $150 million by 10.7%. 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 $110 million of net revenues before intercompany eliminations, up 15% year over year, led by higher device volumes and revenue per device from international partners. App Growth Platform net revenues came in at $56.6 million, up 56% year over year, marking the segment's second consecutive quarter of more than 50% growth on the back of strength in both the brand business and DT Exchange.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
The non-GAAP gross margin expanded 210 basis points (bps) year over year to 49.4%.
Sales and marketing expenses, as a percentage of revenues, decreased 114 bps from the year-ago quarter's level to 9.2%.
General and administrative expenses, as a percentage of revenues, decreased from the year-ago quarter's level of 32.8% to 19.9%.
Product development expenses, as a percentage of revenues, decreased 137 bps to 6.4%.
Non-GAAP EBITDA was $42.5 million as compared with $25.1 million in the year-ago quarter, indicating an increase of 69% year over year, with margin expanding nearly 640 bps to 25.6%.
Digital Turbine reported GAAP income from operations of $23.1 million, up from a loss of $4.7 million in the year-ago quarter, reflecting the combined impact of higher scale and continued expense discipline.
Non-GAAP net income more than tripled to $24.1 million from $7 million in the year-ago quarter, driven by strong top-line growth and operating leverage.
APPS’ Balance Sheet
As of June 30, 2026, cash and cash equivalents (including restricted cash) were $43.2 million compared with $38 million as of March 31, 2026.
In the reported quarter, the company generated cash flow from operations of $17.9 million compared with $4.38 million in the previous quarter.
Non-GAAP free cash flow was $11.3 million compared with a free cash flow burn of $3 million in the previous quarter.
Total debt, net of issuance costs and discounts, was $352.9 million, down more than $8 million sequentially, reflecting continued deleveraging following an amendment to the company's financing agreement during the quarter.
APPS Raises Fiscal 2027 Guidance
Management pointed to broad-based momentum across both segments, continued AI-driven yield improvement and balance sheet strengthening as key supports for the raised outlook. The updated guidance implies a higher profitability profile compared with the initial fiscal 2027 view, underscoring that the company's growth initiatives are translating into more durable earnings power.
For fiscal 2027, APPS now expects non-GAAP revenues between $650 million and $670 million, up from the prior guided range of $630 million to $650 million. Adjusted EBITDA is projected to be in the band of $145 million to $155 million, up from the earlier guidance of $135 million to $145 million.
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APPS Tops Q1 Earnings & Revenue Estimates, Raises Fiscal 2027 Guidance
Key Takeaways
Digital Turbine (APPS - Free Report) delivered first-quarter fiscal 2027 adjusted earnings of 19 cents per share, up from 6 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 14 cents by 35.7%.
Net revenues totaled $166 million, which increased 27% from the year-ago quarter and surpassed the consensus estimate of $150 million by 10.7%. 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 $110 million of net revenues before intercompany eliminations, up 15% year over year, led by higher device volumes and revenue per device from international partners. App Growth Platform net revenues came in at $56.6 million, up 56% year over year, marking the segment's second consecutive quarter of more than 50% growth on the back of strength in both the brand business and DT Exchange.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote
APPS’ Q1 in Detail
The non-GAAP gross margin expanded 210 basis points (bps) year over year to 49.4%.
Sales and marketing expenses, as a percentage of revenues, decreased 114 bps from the year-ago quarter's level to 9.2%.
General and administrative expenses, as a percentage of revenues, decreased from the year-ago quarter's level of 32.8% to 19.9%.
Product development expenses, as a percentage of revenues, decreased 137 bps to 6.4%.
Non-GAAP EBITDA was $42.5 million as compared with $25.1 million in the year-ago quarter, indicating an increase of 69% year over year, with margin expanding nearly 640 bps to 25.6%.
Digital Turbine reported GAAP income from operations of $23.1 million, up from a loss of $4.7 million in the year-ago quarter, reflecting the combined impact of higher scale and continued expense discipline.
Non-GAAP net income more than tripled to $24.1 million from $7 million in the year-ago quarter, driven by strong top-line growth and operating leverage.
APPS’ Balance Sheet
As of June 30, 2026, cash and cash equivalents (including restricted cash) were $43.2 million compared with $38 million as of March 31, 2026.
In the reported quarter, the company generated cash flow from operations of $17.9 million compared with $4.38 million in the previous quarter.
Non-GAAP free cash flow was $11.3 million compared with a free cash flow burn of $3 million in the previous quarter.
Total debt, net of issuance costs and discounts, was $352.9 million, down more than $8 million sequentially, reflecting continued deleveraging following an amendment to the company's financing agreement during the quarter.
APPS Raises Fiscal 2027 Guidance
Management pointed to broad-based momentum across both segments, continued AI-driven yield improvement and balance sheet strengthening as key supports for the raised outlook. The updated guidance implies a higher profitability profile compared with the initial fiscal 2027 view, underscoring that the company's growth initiatives are translating into more durable earnings power.
For fiscal 2027, APPS now expects non-GAAP revenues between $650 million and $670 million, up from the prior guided range of $630 million to $650 million. Adjusted EBITDA is projected to be in the band of $145 million to $155 million, up from the earlier guidance of $135 million to $145 million.
Zacks Rank & Stocks to Consider
APPS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology include Applied Materials (AMAT - Free Report) , ACI Worldwide (ACIW - Free Report) and Analog Devices (ADI - Free Report) . Each stock sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials shares have gained 112.7% in the year-to-date period. Applied Materials is set to report second-quarter 2026 results on Aug. 13.
Shares of ACI Worldwide have gained 19.7% in the year-to-date period. ACI Worldwide is set to report second-quarter 2026 results on Aug. 6.
Shares of Analog Devices have rallied 40.3% year to date. Analog Devices is slated to report fiscal third-quarter 2026 results on Aug. 19.