0001628280-26-038115
SEC filingRevenue up 15.2% to $565M, driven by Asia Pacific; operating income turned positive, net loss narrowed 59%.
Digital Turbine, Inc. describes itself as "a leading independent mobile growth platform" that serves advertisers, publishers, carriers, and OEMs. The Company leverages proprietary technology to enable brand discovery, user acquisition, and monetization across the mobile ecosystem.
The Company reports through two operating segments: On Device Solutions (ODS) and App Growth Platform (AGP). ODS includes Application Media, which delivers apps through carrier and OEM partnerships; Content Media, which presents news and other content within the native device experience; and user acquisition tools such as SingleTap and the DT DSP. AGP consists of Advertising Solutions for app developers and brands, and Ad Monetization Solutions for publishers. Revenue share percentages for each segment are not disclosed in this section.
Named products include SingleTap® (frictionless app install), DT DSP (demand-side platform), and DT Offer Wall. Application Media and Content Media are product groups within ODS that optimize revenue through app install demand and programmatic/content advertising respectively.
ODS products reach end users through exclusive and non-exclusive agreements with wireless carriers and OEMs, typically multi-year with revenue share arrangements. AGP products are delivered via programmatic real-time bidding auctions and direct campaign management tools. For fiscal years 2024-2026, no single supply partner or customer represented more than 10% of net revenue.
The Company operates in a fragmented ecosystem. Primary ODS competitors include Google Play and internal operator solutions developed by carriers and OEMs, as well as Facebook, Snapchat, Unity Software, InMobi, Magnite, and AppLovin. AGP faces competition from AppLovin, Unity Software, Liftoff, and DSP providers like The Trade Desk, AT&T, Google, and Adobe. The Company competes on technology, relationships, user reach, monetization capabilities, and ability to execute strategic transactions.
The Business section states key competitive factors as the ability to enhance technologies, maintain third-party relationships, reach large user bases, execute strategic transactions, monetize apps, and expand into new offerings and geographies. These represent the Company's strategic focus areas.
As of March 31, 2026, Digital Turbine employed 620 full-time employees globally, with 281 in North America, 282 in Europe and the Middle East, 51 in Asia Pacific, and 6 in Latin America. The Company emphasizes total compensation, culture values (Hustle, Results, Accountability, Global, Freedom, Laugh), and health/safety programs.
For fiscal year 2026, Digital Turbine reported net revenue of $565.3 million, up 15.2% from $490.5 million in fiscal 2025. The growth was driven by a 11.9% increase in On Device Solutions (ODS) and a 21.2% increase in App Growth Platform (AGP). Revenue share as a percentage of total net revenue decreased from 48.0% to 43.1%, reflecting product mix shifts toward higher-margin lines and the absence of a $3.8 million non-recurring contract cost from the prior year. Operating income swung to a gain of $34.0 million from a loss of $54.1 million, a $88.1 million improvement. This was primarily due to a $13.4 million decrease in total costs of revenue and operating expenses, driven by lower general and administrative expenses ($31.5M decrease) and reduced sales and marketing costs, partially offset by higher revenue share and other direct costs. Net loss narrowed 59% to $37.7 million from $92.1 million, aided by the operating improvement and a $1.5 million unrealized gain on derivatives, though interest expense rose 68.4% to $58.6 million due to higher debt balances and rates following the August 2025 refinancing.
On Device Solutions revenue grew $40.8 million to $382.4 million, propelled by application media revenue up $38.3 million from higher international device volumes and increased revenue-per-device, partially offset by lower U.S. volumes. Content media contributed an additional $2.5 million from higher daily active users on prepaid devices with a carrier partner. App Growth Platform revenue increased $32.5 million to $185.7 million, led by a $36.6 million surge in advertising exchange revenue from onboarding new publishers and demand partners. Performance and brand advertising declined $2.8 million due to reduced major brand demand, and reseller partnerships fell $1.3 million. The shift toward higher-margin exchange revenue and the favorable mix in ODS improved overall gross margin.
Management highlighted ongoing efforts to refinance certain loan tranches under the Financing Agreement and explore additional capital-raising options. The transformation program, which reduced headcount to 620 from 647, is largely completed, with costs expected to be insignificant going forward. The company faces near-term liquidity risk from exit and duration fees if refinancing is not completed by specified dates, though an April 2026 amendment reduced the minimum liquidity covenant from $20 million to $15 million through December 2026. Management believes existing cash ($37.7M), operating cash flow ($41.8M in FY26), and potential debt refinancing will be sufficient for at least 12 months, but cautions that macroeconomic factors (inflation, tariffs, geopolitical conflicts) could negatively impact results. No specific revenue or earnings guidance was provided.
As of March 31, 2026, Digital Turbine held $37.7M in cash and cash equivalents (excluding $0.2M restricted), down from $39.4M a year earlier. Total debt net of discounts and issuance costs stood at $361.0M, consisting of $391.2M in principal under a new Financing Agreement (entered August 2025) less unamortized discounts and fees. The company refinanced its prior revolver, recording a $9.8M loss on extinguishment. Liquidity is supported by a minimum liquidity covenant of $10M (recently amended to $15M for part of FY2027). Shareholders' equity increased to $192.2M from $154.0M, driven by an ATM equity offering that raised $56.8M net.
The most notable off-balance-sheet commitment is $192.3M in minimum hosting agreement payments over four fiscal years, with $48.3M due in fiscal 2027, $49.0M in 2028, $53.0M in 2029, and $42.0M in 2030. These relate to cloud and infrastructure services. Additionally, the company has a contingent earn-out liability of $0.9M for the In App acquisition, expected to be paid in fiscal Q4 2027.
Digital Turbine did not repurchase shares or pay dividends. Capital expenditures totaled $30.6M (5.4% of revenue), primarily for software development and infrastructure. The company raised $58.6M gross via an at-the-market offering (9.9M shares at $5.89 average), using proceeds to pay down $55M of debt. Net debt decreased by $47.7M, from $408.7M to $361.0M. The new Financing Agreement carries mandatory prepayment from equity issuances and 50% of excess cash flow starting FY2027.
Two reportable segments: ODS (On Device Solutions) and AGP (App Growth Platform). ODS revenue grew 11.9% to $382.4M, with segment profit of $173.4M (45.3% margin). AGP revenue grew 21.2% to $185.7M, with segment profit of $148.2M (79.8% margin). Geographically, the U.S. and Canada contributed 40.3% of total revenue, EMEA 28.7%, and Asia Pacific 30.8%. ODS is more geographically diversified, while AGP is heavier in the U.S. No further operating expenses are allocated to segments in internal reporting.
The transformation program (workforce reduction in Nov 2024 and Jan 2025) is a central risk: it may not deliver expected cost savings and could harm employee morale, productivity, and retention. The company has a history of net losses and limited operating history post-acquisitions (Appreciate, AdColony, Fyber).
The $430M Financing Agreement (August 2025) carries variable interest rates, mandatory prepayment from excess cash flow (50% from FY2027), and a liquidity covenant reduced to $15M through Dec 2026. Failure to refinance certain tranches triggers exit/duration fees. The company raised $58.6M via an ATM program (terminated Feb 2026) to prepay debt. Goodwill impairment of $336.6M in FY2024 highlights further potential write-downs.
AI regulation is a key new theme: the EU AI Act, Colorado AI Act, and CCPA automated decision-making rules could require product changes or restrict AI use. Geopolitical risks are elevated due to conflicts in Israel (significant operations), Ukraine, and US-China trade tensions. Tariffs and trade protectionism could reduce advertiser spending and increase costs.
The mobile advertising market is intensely competitive (Google, Facebook, Unity, AppLovin, in-house carrier solutions). Rapid technological change (AI/ML) and evolving industry standards require constant investment. Customer concentration in the ODS business (limited wireless carriers) and short-term, cancellable contracts amplify revenue volatility.
Cyber threats are increasingly sophisticated (AI-enhanced attacks, ransomware). The company relies on third-party AI partners for core infrastructure. Data privacy laws (GDPR, CCPA, DSA) impose compliance costs and potential liability. Children's online privacy enforcement is increasing.
The provided excerpt from Digital Turbine's 10-K filing does not include the full Consolidated Statements of Cash Flows. Only the cash and cash equivalents balance is visible: $37.96 million as of March 31, 2026, compared to $40.08 million as of March 31, 2025. This indicates a net decrease of $2.12 million in total cash, but the underlying operating, investing, and financing cash flow components are not disclosed in the text. Without CFO, net income, capex, or other line items, a comprehensive cash flow quality assessment is not possible. The absence of these figures precludes analysis of CFO versus net income, capex intensity, or free cash flow coverage of capital returns. No anomalies such as working capital swings or one-time tax payments can be identified from the available data. The filing date is May 26, 2026, for the fiscal year ended March 31, 2026.