Investment Thesis
Digital Turbine demonstrates explosive revenue growth of 1510% YoY with strong gross margins of 56.1%, indicating successful business scaling. However, the company remains unprofitable with negative net income of -$30.4M and concerning leverage metrics including 1.82x debt-to-equity ratio and 0.7x interest coverage, raising questions about sustainable profitability and financial stability.
APPS Strengths
- Extraordinary revenue growth of 1510% YoY demonstrating rapid market traction and business expansion
- Solid gross margin of 56.1% suggesting strong pricing power and operational efficiency at the product level
- Positive free cash flow of $37.4M despite net losses indicates underlying business quality and cash generation capability
APPS Risks
- Negative net income of -$30.4M and negative net margin of -7.2% indicate the company is not yet profitable despite massive revenue scale
- High leverage with 1.82x debt-to-equity ratio and critically low 0.7x interest coverage ratio poses refinancing and solvency risks
- Operating margin of only 5.6% despite 56.1% gross margin suggests significant operating expense burden that must be controlled for profitability
Key Metrics to Watch
- Operating margin expansion toward profitability threshold
- Debt-to-equity ratio reduction and interest coverage ratio improvement
- Sustaining revenue growth momentum while achieving operating leverage
APPS Financial Metrics
APPS Profitability Ratios
APPS Balance Sheet & Liquidity
APPS 5-Year Financial Trend
5-Year Trend Summary: Digital Turbine, Inc.'s revenue has grown significantly by 112% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.16 reflects profitable operations.
APPS Growth Metrics (YoY)
APPS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $134.6M | $5.1M | $0.03 |
| Q2 2026 | $118.7M | -$14.1M | $-0.20 |
| Q1 2026 | $118.0M | -$14.1M | $-0.13 |
| Q3 2025 | $134.6M | -$14.1M | $-0.14 |
| Q2 2025 | $118.7M | -$25.0M | $-0.24 |
| Q1 2025 | $118.0M | -$8.2M | $-0.08 |
| Q3 2024 | $142.6M | $4.0M | $0.04 |
| Q2 2024 | $143.3M | $11.7M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APPS Capital Allocation
APPS SEC Filings
Access official SEC EDGAR filings for Digital Turbine, Inc. (CIK: 0000317788)