Digital Turbine, Inc.

Total net revenue was $166 million, up 27% year over year. On-Device Solutions net revenue was $110 million, up 15% year over year, and App Growth Platform net revenue was $56.6 million, up 56% year over year. Non-GAAP gross margin was 49.4% versus 47.3% a year ago; adjusted EBITDA was $42.5 million, up 69% year over year, with margin of 25.6%; GAAP net loss was $3.2 million, or $0.03 per share, versus a loss of $14.1 million, or $0.13 per share, last year; and non-GAAP net income was $24.1 million, or $0.19 per share, versus $7 million, or $0.06 per share. Cash from operations was $17.9 million, free cash flow was $11.3 million, cash and equivalents were $43.2 million, and net debt was approximately $352.9 million. The company raised fiscal 2027 guidance to revenue of $650 million-$670 million and adjusted EBITDA of $145 million-$155 million, versus prior guidance of $630 million-$650 million and $135 million-$145 million.

Bill Stone framed the quarter as evidence that the company is executing on multiple growth engines rather than relying on one. He highlighted international ODS, especially OEM and operator strength, and AGP, where brand revenue grew over 70% and DTX grew over 40%. His tone was upbeat and confident, with AI, first-party data, Ignite, and alternative app distribution presented as the main strategic priorities and future catalysts.

Josh Kinsell emphasized the financial leverage showing up in the model: revenue of $166 million, adjusted EBITDA of $42.5 million, and gross margin of 49.4%. He noted cash operating expenses of $39.5 million, up only 7% year over year, while cash from operations reached $17.9 million and free cash flow was $11.3 million. He also pointed to balance-sheet improvement, with cash of $43.2 million, debt down to about $352.9 million, and a 50 basis point reduction in the applicable margin on the largest loan tranche after quarter end.

Analysts pressed on the sustainability of growth in brand and DTX, especially given ad-market lumpiness, and management said it expects growth to continue because the brand channel has been built out and major advertisers are already spending. Questions also focused on international ODS strength; management said Motorola, Samsung, and international operators drove the upside, helping offset broader DRAM and device-supply concerns. On Google/Epic and alternative app distribution, Bill Stone said the rulings should open more opportunities and act as a tailwind, while on Ignite he said the pipeline is strong and “momentum begets momentum.”