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what it is
Digital Turbine helps phone makers, carriers, app publishers, and advertisers get apps and ads onto your phone screen.
how it gets paid
Last year Digital Turbine made $491M in revenue. On Device Solutions was the main engine at $221M, or 45% of sales.
why growth slowed
Revenue fell 9.9% last year. Revenue of $151.4M mattered most because this company needs top-line stability before investors will forgive the debt.
what just happened
The latest quarter showed $151.4M in revenue and a return to GAAP profitability, but the full-year setup still looks fragile.
At a glance
C++ balance sheet — some cracks in the foundation
25/100 earnings predictability — expect surprises
2.8% return on capital — nothing to write home about
-$0.89 fy2024 eps est
$491M fy2024 rev est
xvary composite: 31/100 — weak
What they do
Digital Turbine helps phone makers, carriers, app publishers, and advertisers get apps and ads onto your phone screen.
Its edge is placement. The company sits on the phone before you pick your first app, connecting carriers, OEMs, publishers, and advertisers. With 647 employees supporting a $491M revenue base, it is selling access to your screen, and losing that spot can hit your app installs fast.
How they make money
$491M
annual revenue · their business grew -9.9% last year
On Device Solutions
$221M
App Growth Platform - advertiser demand
$123M
App Growth Platform - publisher monetization
$88M
User acquisition and engagement tools
$59M
The products that matter
on-device app promotion
Ignite
~$147M revenue · 30% of sales
it pre-installs apps on new phones through carrier and OEM deals. this piece still represents about $147M of revenue, but flat growth says the market is mature and the partner relationships do most of the work.
legacy core
mobile ad platform
App Media
~$344M revenue · 70% of sales · +12%
this is the engine now — roughly $344M of revenue and 12% growth. it matters because this is the only segment in the current snapshot producing clear top-line momentum.
growth engine
one-tap app installs
SingleTap
embedded in App Media
SingleTap lets users install an app from an ad with less friction. it sits inside the roughly $344M App Media business, so your question is not whether the feature exists — it is whether it wins enough advertiser spend to move a company with $399M of debt.
execution bet
Key numbers
$399M
long-term debt
Debt this large against a roughly $427M market cap means the creditors matter almost as much as the shareholders.
11.0%
operating margin
Operating margin means profit after running the business. At -11.0%, every $100 of sales lost $11 before interest and taxes.
$491M
annual revenue
This is the size of the business today, and it fell 9.9% vs. prior year, so scale is moving the wrong way.
2.4
beta
Beta measures how violently a stock moves versus the market. At 2.4, you are signing up for mood swings.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $399M (48% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for APPS right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest quarter showed $151.4M in revenue and a return to GAAP profitability, but the full-year setup still looks fragile.
Fiscal Q3 2026 revenue rose 12% vs. prior year to $151.4M, and GAAP net income was $5.1M, or $0.03 per share. That is better than the prior year, but the broader record still includes fiscal 2025 EPS of -$0.89.
$151.4M
revenue
$0.03
eps
56.1%
gross margin
the number that mattered
Revenue of $151.4M mattered most because this company needs top-line stability before investors will forgive the debt.
source: company earnings report, 2026
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What could go wrong
the #1 risk is debt refinancing and dilution pressure around a $399M balance-sheet load.
med
$399M of debt against a $427M market cap
the company owes almost as much as equity investors say the entire business is worth. debt is 48% of capital, which leaves little room for operating misses or a tougher refinancing window.
if lenders get less patient before cash flow improves, shareholders sit behind a very large claim.
med
$7M of quarterly free cash flow does not shrink this debt stack fast
at the recent quarterly run rate, it would take years to make a visible dent in $399M of debt. one better quarter helps. it does not solve the equity case.
this exposes the whole stock to one question: does APPS turn revenue growth into much larger cash generation, fast.
med
6.9% quarterly dilution can erase operating progress on a per-share basis
the business may improve while each share owns less of it. that is the quiet part in many turnaround stories, and APPS already showed it can happen.
if dilution keeps funding the repair, equity holders absorb the cost before they get the reward.
a slowdown in ad demand or another quarter of heavy dilution would hit the equity fast, because the company still carries $399M of debt on a $427M market cap.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next earnings
Q4 2026 and full-year results
management raised guidance to $553M–$558M. if the company misses after lifting the bar, the credibility gain from Q3 fades fast.
the existential metric
quarterly free cash flow
$7M was better, not enough. if free cash flow stays near that level while debt stays at $399M, the balance sheet keeps controlling the stock.
shareholder math
dilution rate
shares outstanding rose 6.9% in one quarter. track the share count every report, because business improvement means less if your ownership keeps shrinking.
business trend
App Media growth versus flat device revenue
App Media grew 12% while Device & Carrier Solutions was flat. you want to see the growth side keep widening the gap, because right now one segment is carrying the rebound.
Analyst rankings
short-term outlook
bottom 20%
outlook rank 5 — analysts see below-average price performance ahead. in human-speak, they are not giving the turnaround much benefit of the doubt yet.
risk profile
high risk
risk rank 5 means riskier than 95% of stocks. with price stability at 5/100, you should expect sharp moves in both directions.
chart momentum
improving
the Q3 beat improved momentum. translation: traders noticed the better quarter, but the move stays fragile until cash flow improves too.
earnings predictability
25 / 100
25/100 means the business is hard to model. if you own APPS, do not build your thesis on a single clean quarter.
source: institutional data
Institutional activity
institutional ownership data for APPS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
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