Digital Turbine Raises Outlook as Growth Accelerates
Fiscal first-quarter revenue reached $166.0 million as both operating platforms grew.
Digital Turbine (APPS), a mobile advertising software company, swung to GAAP operating income of $23.1 million from a $4.7 million loss a year earlier as administrative expenses declined despite higher direct revenue costs.
The fiscal 2027 first quarter extended the company’s growth acceleration. Revenue rose 27% from a year earlier and 16% sequentially, after increasing 20% year over year in the preceding quarter. Adjusted EBITDA increased 69% to $42.5 million, compared with 53% growth in the prior quarter.
The GAAP net loss narrowed to $3.2 million, or $0.03 a share, from $14.1 million, or $0.13 a share, a year earlier. Adjusted net income climbed to $24.1 million, or $0.19 a share, from $7.0 million, or $0.06 a share.
App Growth Platform revenue increased 56% year over year to $56.6 million, holding near the preceding quarter’s 57% growth rate. On Device Solutions revenue rose 15% to $110.0 million, accelerating from 5% growth in the prior quarter and increasing 21% sequentially.
Profitability strengthened alongside the faster On Device Solutions growth. Non-GAAP gross margin expanded to 49% from 47% a year earlier, while adjusted EBITDA margin reached about 25.6%, up from 22.0% in the preceding quarter.
Digital Turbine raised its fiscal 2027 outlook to revenue of $650 million to $670 million and adjusted EBITDA of $145 million to $155 million. The company did not provide the previous ranges in the cited material.
Operating cash flow more than doubled to $17.9 million from $8.8 million a year earlier, and free cash flow rose to $11.3 million. GAAP results included a $10.8 million unrealized derivatives loss and a net $1.1 million noncash adjustment tied to an investment revaluation charge and the release of acquisition-related estimated liabilities.