APPS · Digital Turbine, Inc.

Digital Turbine's fiscal fourth quarter and full-year 2026 results reflect a strong operational turnaround, with revenue growth accelerating to 20% YoY in Q4 and full-year Non-GAAP Adjusted EBITDA surging 69% to $122.5 million. The standout driver was the App Growth Platform segment, which grew 57% in the quarter to $52.1 million, more than offsetting the more mature On Device Solutions segment's 5% growth. This mix shift contributed to notable gross margin expansion, with Non-GAAP gross profit rising to 50% of revenue in Q4 versus 48% a year ago, as detailed in the reconciliation tables. GAAP net loss narrowed sharply to $7.3 million from $18.8 million, aided by lower stock-based compensation and a $2.2 million unrealized gain on derivatives. The balance sheet shows improved equity of $192.2 million, though debt remains elevated at $353.9 million net of current portion. Operating cash flow for the quarter was $4.4 million, but capital expenditures of $7.4 million resulted in negative free cash flow of $3.0 million. Management's commentary, led by CEO Bill Stone, emphasized the successful use of first-party data and AI tools to drive advertiser outcomes. The fiscal 2027 guidance of $630-$650 million in revenue and $135-$145 million in Non-GAAP Adjusted EBITDA implies continued double-digit growth and margin expansion, with the midpoint of EBITDA guidance representing roughly 22% growth over fiscal 2026. The company did not provide GAAP net income guidance due to the unpredictability of stock-based compensation. Overall, the release signals a company that has regained momentum, with strong segment performance and a confident forward outlook.