Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
Fourth Quarter Net Revenue Totaled $142.5 Million, Representing Year-over-Year Growth of 20%
Fourth Quarter GAAP Net Loss of $7.3 Million and GAAP EPS of ($0.06); Fourth Quarter Non-GAAP Adjusted Net Income 1 of $19.7 Million and Non-GAAP Adjusted EPS 1 of $0.16
Fourth Quarter Non-GAAP Adjusted EBITDA 2 Totaled $31.4 Million, Representing Year-over-Year Growth of 53%
Fiscal Year 2026 Net Revenue Totaled $565.3 Million, Representing Year-over-Year Growth of 15%
Fiscal Year 2026 GAAP Net Loss of $37.7 Million and GAAP EPS of ($0.33); Fiscal Year 2026 Non-GAAP Adjusted Net Income 1 of $64.9 Million and Non-GAAP Adjusted EPS 1 of $0.56
Fiscal Year 2026 Non-GAAP Adjusted EBITDA 2 Totaled $122.5 Million, Representing Year-over-Year Growth of 69%
AUSTIN, Texas, May 26, 2026 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal fourth quarter and fiscal year ended March 31, 2026.
Recent Financial Highlights:
"Fiscal 2026 was a successful year for Digital Turbine. Emboldened by our upside financial performance and ongoing business momentum, we are pleased to provide guidance above current estimates for fiscal 2027," said Bill Stone, CEO. "I am extremely proud of the Company's overall execution, as we returned the business to double-digit revenue and adjusted EBITDA growth with notable gross margin expansion, while simultaneously strengthening the balance sheet and strategically positioning the Company for the future. One of the key factors for our markedly improved performance has been our ability to more effectively utilize our unique first-party data in order to drive better results for our rapidly expanding global network of advertisers, publishers, carriers and OEMs. Our ability to leverage valuable new AI tools and partnerships to maximize the value of our extensive data array has been, and will continue to be, a meaningful contributor to growth."
Fiscal 2026 Fourth Quarter Financial Results
Total net revenue for the fourth quarter of fiscal 2026 was $142.5 million, representing year-over-year growth of 20% as compared to net revenue of $119.2 million for the fourth quarter of fiscal 2025. Total On Device Solutions net revenue before intercompany eliminations was $91.0 million, representing year-over-year growth of 5%. Total App Growth Platform net revenue before intercompany eliminations was $52.1 million, representing year-over year growth of 57%.
GAAP net loss for the fourth quarter of fiscal 2026 was $7.3 million, or ($0.06) per share, as compared to GAAP net loss for the fourth quarter of fiscal 2025 of $18.8 million, or ($0.18) per share.
Non-GAAP adjusted net income 1 for the fourth quarter of fiscal 2026 was $19.7 million, or $0.16 per share, as compared to non-GAAP adjusted net income 1 of $11.3 million, or $0.10 per share, in the fourth quarter of fiscal 2025.
Non-GAAP adjusted EBITDA 2 for the fourth quarter of fiscal 2026 was $31.4 million, representing year-over-year growth of 53% as compared to non-GAAP adjusted EBITDA 2 for the fourth quarter of fiscal 2025 of $20.5 million.
Full Year Fiscal 2026 Financial Results
Total net revenue for fiscal 2026 was $565.3 million, representing year-over-year growth of 15% as compared to total revenue of $490.5 million for fiscal 2025.
GAAP net loss for fiscal 2026 was $37.7 million, or ($0.33) per share, as compared to GAAP net loss for fiscal 2025 of $92.1 million, or ($0.89) per share.
Non-GAAP adjusted net income 1 for fiscal 2026 was $64.9 million, or $0.56 per share, as compared to non-GAAP adjusted net income 1 for fiscal 2025 of $38.7 million, or $0.37 per share.
Non-GAAP adjusted EBITDA 2 for fiscal 2026 was $122.5 million, representing year-over-year growth of 69% as compared to fiscal 2025 non-GAAP adjusted EBITDA 2 of $72.3 million.
Business Outlook
Based on information available as of May 26, 2026, the Company currently expects the following for fiscal year 2027 :
It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company's stock price, or other items that are difficult to predict with precision.
About Digital Turbine, Inc.
Digital Turbine empowers superior mobile consumer experiences and results for the world's leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners' abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com.
Conference Call
Management will host a conference call and webcast today at 4:30p.m. ET to discuss its fourth quarter and fiscal 2026 financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https://app.webinar.net/W6z15Q47g98. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 6034141. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine's website. The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.
For those unable to join the live call, a playback will be available through June 2nd, 2026. The replay can be accessed by dialing 855-669-9658 in the United States or 412-317-0088 from international locations, passcode 2613496.
An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share ("EPS"), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.
Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management's internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
1Non-GAAP adjusted net income (loss) and EPS are defined as GAAP net income (loss) and EPS adjusted to exclude the effect of the following, if any: stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent consideration, contract settlement fees, impairment of goodwill, tax adjustments, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment of debt, the amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific August 29, 2025 debt refinance transaction and related issuance of warrants. Readers are cautioned that non-GAAP adjusted net income (loss) and EPS should not be construed as an alternative to comparable GAAP net income (loss) figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.
2Non-GAAP adjusted EBITDA is calculated as GAAP net income (loss) excluding the following cash and non-cash expenses, if any: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent consideration, impairment of goodwill, severance costs, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs, and exit and duration fees, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment of debt, the amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific August 29, 2025 debt refinance transaction and related issuance of warrants. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.
3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding the following, if any: transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.
4Non-GAAP gross profit is defined as GAAP income (loss) from operations adjusted to exclude the effect of the following, if any: product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, impairment of goodwill and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.
Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company's financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.
Forward-Looking Statements
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:
Risks Specific to our Business
Risks Related to the Mobile Advertising Industry
Industry Regulatory Risks
Risks Related to Our Intellectual Property and Potential Liability
Risks Relating to Our Common Stock and Capital Structure
You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact:
Brian Bartholomew
Digital Turbine, Inc.
[email protected]
Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Net revenue
$ 142,549
$ 119,152
$ 565,251
$ 490,506
Costs of revenue and operating expenses
Revenue share
57,982
53,195
243,638
235,287
Other direct costs of revenue
12,720
9,359
46,971
34,541
Product development
9,458
9,114
40,476
39,464
Sales and marketing
15,639
14,014
58,000
61,642
General and administrative
36,235
45,162
142,124
173,647
Total costs of revenue and operating expenses
132,034
130,844
531,209
544,581
Income (loss) from operations
10,515
(11,692)
34,042
(54,075)
Interest and other income (expense), net
Change in fair value of contingent consideration
—
—
(231)
(300)
Interest expense, net
(16,782)
(8,855)
(58,580)
(34,783)
Unrealized gain on derivatives
2,239
—
1,504
—
Foreign exchange transaction gain
499
418
3,536
1,297
Loss on extinguishment of debt
—
—
(9,795)
—
Other expense, net
(15)
(24)
(1,816)
(3)
Total interest and other expense, net
(14,059)
(8,461)
(65,382)
(33,789)
Loss before income taxes
(3,544)
(20,153)
(31,340)
(87,864)
Income tax expense (benefit)
3,796
(1,327)
6,392
4,235
Net loss
(7,340)
(18,826)
(37,732)
(92,099)
Other comprehensive income
Foreign currency translation gain (loss)
802
826
(462)
(2,349)
Comprehensive loss
$ (6,538)
$ (18,000)
$ (38,194)
$ (94,448)
Net loss per common share
Basic
$ (0.06)
$ (0.18)
$ (0.33)
$ (0.89)
Diluted
$ (0.06)
$ (0.18)
$ (0.33)
$ (0.89)
Weighted average common shares outstanding
Basic
120,048
105,427
112,923
103,747
Diluted
120,048
105,427
112,923
103,747
Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except par value and share amounts)
March 31,
2026
2025
ASSETS
Current assets
Cash, cash equivalents, and restricted cash
$ 37,960
$ 40,084
Accounts receivable, net
251,240
181,770
Prepaid expenses
6,060
6,923
Value-added tax receivable
4,461
8,291
Other current assets
12,149
5,711
Total current assets
311,870
242,779
Property and equipment, net
49,111
46,966
Right-of-use assets
7,739
9,924
Intangible assets, net
217,448
257,697
Goodwill
223,053
221,741
Other non-current assets
32,433
33,747
TOTAL ASSETS
$ 841,654
$ 812,854
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 132,807
$ 139,944
Accrued revenue share
87,215
35,264
Accrued compensation
22,408
7,503
Acquisition purchase price liabilities
436
1,697
Current portion of long-term debt
7,031
—
Other current liabilities
18,402
38,118
Total current liabilities
268,299
222,526
Long-term debt, net
353,932
408,687
Derivative liabilities
2,164
—
Deferred tax liabilities, net
15,818
16,308
Other non-current liabilities
9,280
11,375
Total liabilities
649,493
658,896
Commitments and contingencies
Stockholders' equity
Preferred stock
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized,
100,000 issued and outstanding (liquidation preference of $1)
100
100
Common stock
$0.0001 par value: 200,000,000 shares authorized; 121,073,328 issued and 120,315,203
outstanding at March 31, 2026; 106,735,767 issued and 105,977,642 outstanding at March 31,
2025
10
10
Additional paid-in capital
969,062
892,665
Treasury stock (758,125 shares at March 31, 2026 and March 31, 2025)
(71)
(71)
Accumulated other comprehensive loss
(51,766)
(51,304)
Accumulated deficit
(725,174)
(687,442)
Total stockholders' equity
192,161
153,958
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 841,654
$ 812,854
Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Three Months Ended
March 31,
Year ended
March 31,
2026
2025
2026
2025
Cash flows from operating activities:
Net loss
$ (7,340)
$ (18,826)
$ (37,732)
$ (92,099)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization
16,684
23,126
71,452
82,910
Amortization of debt discount, issuance costs, and exit and
duration fees
5,994
545
13,933
1,835
Provision for credit losses on accounts receivable
44
623
233
2,767
Unrealized gain on derivatives
(2,239)
—
(1,504)
—
Foreign exchange transaction gain
(499)
(418)
(3,536)
(1,297)
Stock-based compensation expense
4,142
8,126
16,355
33,543
Loss on extinguishment of debt
—
—
9,795
—
Change in fair value of contingent consideration
—
—
231
300
Non-cash lease expense
895
788
3,502
3,179
Change in deferred income taxes
4,232
1,298
(654)
(4,054)
Changes in operating assets and liabilities:
Accounts receivable
(6,150)
16,847
(70,192)
5,823
Prepaid expenses
1,442
(18)
922
777
Value-added tax receivable
6,089
(640)
4,386
(3,570)
Other current assets
3,587
(423)
(4,848)
613
Right-of-use asset
(1,149)
108
(1,061)
(3,928)
Other non-current assets
786
237
1,814
939
Accounts payable
5,563
(7,961)
(7,183)
(19,345)
Accrued revenue share
(6,908)
927
51,827
1,418
Accrued compensation
4,987
(1,081)
14,767
298
Other current liabilities
(26,103)
(10,007)
(21,415)
2,410
Other non-current liabilities
324
(1,743)
713
(639)
Net cash provided by operating activities
4,381
11,508
41,805
11,880
Cash flows from investing activities
Capital expenditures
(7,447)
(6,944)
(30,619)
(27,477)
Net cash used in investing activities
(7,447)
(6,944)
(30,619)
(27,477)
Cash flows from financing activities
Proceeds from borrowings, net of original issue discount
—
—
418,700
38,000
Payment of debt issuance costs
—
—
(20,486)
(1,627)
Payment of deferred business acquisition consideration
(106)
—
(1,263)
—
Repayment of debt obligations
—
—
(466,000)
(13,000)
Proceeds from issuance of common stock in connection
with at-the-market offering, net of issuance costs of $1,337
—
—
56,809
—
Payment of withholding taxes for net share settlement of
equity awards
(432)
(234)
(937)
(465)
Proceeds from options exercised
6
270
2,313
373
Net cash provided by (used in) financing activities
(532)
36
(10,864)
23,281
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Effect of exchange rate changes on cash and cash equivalents
and restricted cash
1,135
170
(2,446)
(1,205)
Net change in cash and cash equivalents and restricted cash
(2,463)
4,770
(2,124)
6,479
Cash and cash equivalents and restricted cash, beginning of
period
40,423
35,314
40,084
33,605
Cash and cash equivalents and restricted cash, end of period
$ 37,960
$ 40,084
$ 37,960
$ 40,084
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents
$ 37,719
$ 39,393
$ 37,719
$ 39,393
Restricted cash
$ 241
$ 691
$ 241
$ 691
Total cash, cash equivalents, and restricted cash
$ 37,960
$ 40,084
$ 37,960
$ 40,084
Supplemental disclosure of cash flow information
Interest paid
$ 11,061
$ 7,986
$ 47,088
$ 35,583
Income taxes paid
$ 14,193
$ 5,592
$ 26,295
$ 7,150
Supplemental disclosure of non-cash investing and financing
activities
Assets acquired not yet paid
$ 233
$ 519
$ 233
$ 519
Stock-based compensation included in capitalized software
development costs
$ 382
$ 232
$ 1,857
$ 1,024
Fair value of unpaid contingent consideration in connection
with business acquisitions
$ —
$ 1,664
$ —
$ 1,664
Net Revenue By Segment
(in thousands)
(Unaudited)
Three Months Ended March 31,
Year Ended March 31,
2026
2025
% Change
2026
2025
% Change
On Device Solutions
$ 90,961
$ 86,832
5 %
$ 382,429
$ 341,632
12 %
App Growth Platform
52,149
33,250
57 %
185,742
153,229
21 %
Elimination
(561)
(930)
(40) %
(2,920)
(4,355)
(33) %
Total net revenue
$ 142,549
$ 119,152
20 %
$ 565,251
$ 490,506
15 %
GAAP Income (Loss) From Operations to Non-GAAP Gross Profit
(in thousands)
(Unaudited)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Income (loss) from operations
$ 10,515
$ (11,692)
$ 34,042
$ (54,075)
Add-back items:
Product development
9,458
9,114
40,476
39,464
Sales and marketing
15,639
14,014
58,000
61,642
General and administrative
36,235
45,162
142,124
173,647
Depreciation of software included in other direct costs of
revenue
—
6
—
208
Contract settlement fees
—
—
—
3,800
Non-GAAP gross profit
$ 71,847
$ 56,604
$ 274,642
$ 224,686
Non-GAAP gross profit percentage
50 %
48 %
49 %
46 %
GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income
(in thousands)
(Unaudited)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Net loss
$ (7,340)
$ (18,826)
$ (37,732)
$ (92,099)
Add-back items:
Stock-based compensation expense
4,142
8,126
16,355
33,543
Amortization of intangibles
8,868
13,429
41,598
55,612
Change in fair value of contingent consideration
—
—
231
300
Tax adjustment (1)
10,240
7,165
21,589
29,551
Business transformation costs
—
84
31
2,060
Transaction-related expenses
—
152
—
359
Severance costs
53
666
595
3,711
Contract settlement fees
—
—
—
3,800
Amortization of debt discount, issuance costs, and exit
and duration fees (2)
5,994
536
13,933
1,826
Loss on extinguishment of debt
—
—
9,795
—
Unrealized gain on derivatives
(2,239)
—
(1,504)
—
Non-GAAP adjusted net income
$ 19,718
$ 11,332
$ 64,891
$ 38,663
Non-GAAP adjusted net income per common share
$ 0.16
$ 0.10
$ 0.56
$ 0.37
Weighted average common shares outstanding, diluted
122,791
108,150
116,776
105,810
________
(1) Valuation allowance
(2) During the fiscal year ended March 31, 2026, the Company revised its non-GAAP definitions to include non-cash interest expense. Prior-
period presentations for the three months and year ended March 31, 2025, have been recast to conform to the current period presentation.
GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
(in thousands)
(Unaudited)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Net loss
$ (7,340)
$ (18,826)
$ (37,732)
$ (92,099)
Add-back items:
Stock-based compensation expense
4,142
8,126
16,355
33,543
Depreciation and amortization
16,684
23,126
71,452
82,910
Interest expense, net
16,782
8,855
58,580
34,783
Other expense, net
15
24
1,816
3
Change in fair value of contingent consideration
—
—
231
300
Business transformation costs
—
84
31
2,060
Loss on extinguishment of debt
—
—
9,795
—
Foreign exchange transaction gain
(499)
(418)
(3,536)
(1,297)
Income tax expense (benefit)
3,796
(1,327)
6,392
4,235
Transaction-related expenses
—
152
—
359
Severance costs
53
666
595
3,711
Contract settlement fees
—
—
—
3,800
Unrealized gain on derivatives
(2,239)
—
(1,504)
—
Non-GAAP adjusted EBITDA
$ 31,394
$ 20,462
$ 122,475
$ 72,308
GAAP Cash Flow From Operating Activities to Non-GAAP Free Cash Flow
(in thousands)
(Unaudited)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Net cash provided by operating activities
$ 4,381
$ 11,508
$ 41,805
$ 11,880
Capital expenditures
(7,447)
(6,944)
(30,619)
(27,477)
Transaction-related expenses
—
152
—
359
Severance costs
53
666
595
3,711
Business transformation costs
—
84
31
2,060
Non-GAAP free cash flow provided by (used in) operations
$ (3,013)
$ 5,466
$ 11,812
$ (9,467)
SOURCE Digital Turbine, Inc.