Digital Turbine Reports Strong Q3 Results for Fiscal 2026
Digital Turbine, Inc. (NASDAQ: APPS) has reported robust financial growth for the third quarter of fiscal 2026, generating a total revenue of $151.4 million. This figure represents a year-over-year increase of 12% compared to the same quarter last year.
Financial Highlights
The company's GAAP net income for Q3 of fiscal 2026 stood at $5.1 million, translating to earnings per share of $0.03. In contrast, the previous fiscal year's Q3 reported a net loss of $23.1 million, or ($0.22) per share. Notably, the non-GAAP adjusted net income saw a significant rise, reaching $21.7 million or $0.18 per share, compared to $14.2 million or $0.13 per share in Q3 of fiscal 2025. Furthermore, the non-GAAP adjusted EBITDA for the third quarter was an impressive $38.8 million, marking a substantial year-over-year growth of 76% from $22.0 million reported during the same period last year.
Revenue Segmentation
Breaking down the revenue figures, Digital Turbine's On Device Solutions generated approximately $99.6 million, while the App Growth Platform accounted for around $52.6 million. This diversification in revenue streams highlights the company's strength in catering to both device and platform segments of the mobile application ecosystem.
CEO’s Remarks
Bill Stone, CEO of Digital Turbine, expressed optimism regarding the company's performance, stating, "Our results for the December quarter demonstrate a continuation of positive business momentum. The demand for our services and products has been strong and diverse, leading us to confidently raise our fiscal 2026 outlook. As mobile app publishers and advertisers seek innovative methods to enhance app engagement and profitability, we are in a prime position to capitalize on these market opportunities. We remain focused on aligning our operations with emerging trends to ensure sustained growth and value for our stakeholders."
Future Outlook
Digital Turbine is raising its revenue outlook for the fiscal year 2026, projecting revenues in the range of $553 million to $558 million. The expected non-GAAP adjusted EBITDA is forecasted to be between $114 million and $117 million. Management notes that while it can provide guidance on revenue and EBITDA, estimating GAAP net income remains challenging due to the unpredictability of stock-based compensation expenses.
About Digital Turbine, Inc.
Digital Turbine is committed to enhancing mobile consumer experiences through its comprehensive platform that engages telcos, advertisers, and publishers alike. The company is equipped to revolutionize mobile user acquisition and awareness, driving better results through its end-to-end solutions. With a global operational footprint, Digital Turbine continues to innovate its offerings to meet the demands of the rapidly evolving mobile marketplace.
Conference Call Details
The management team will conduct a conference call and webcast to discuss the fiscal Q3 2026 financial results at 4:30 PM ET. Stakeholders and interested parties can access the call through various channels for a detailed overview of the company’s operational updates and projections.
Key Takeaways from Q3
- Q3 Fiscal 2026 revenue: $151.4 million.
- GAAP net income: $5.1 million; EPS: $0.03.
- Non-GAAP adjusted net income: $21.7 million; EPS: $0.18.
- Non-GAAP adjusted EBITDA: $38.8 million, up 76% year-over-year.
- On Device Solutions revenue: $99.6 million; App Growth Platform revenue: $52.6 million.
Frequently Asked Questions
What are Digital Turbine's revenue and earnings figures for Q3 fiscal 2026?
Digital Turbine reported a revenue of $151.4 million and a GAAP net income of $5.1 million for Q3 of fiscal 2026.
How does Digital Turbine's Q3 performance compare to the previous year?
The company experienced a 12% year-over-year revenue growth and shifted from a net loss of $23.1 million in Q3 of the previous fiscal year to a net income of $5.1 million in the current year.
What is the forecast for Digital Turbine for fiscal year 2026?
Digital Turbine anticipates revenues in the range of $553 million to $558 million, with expected non-GAAP adjusted EBITDA between $114 million and $117 million for fiscal 2026.
What segments contributed to Digital Turbine's revenue?
The company's revenue came from two primary segments: On Device Solutions ($99.6 million) and the App Growth Platform ($52.6 million).
What qualitative insights did the CEO provide regarding the company's outlook?
CEO Bill Stone highlighted strong demand and diversity in results, emphasizing confidence in seizing future growth opportunities in the mobile app ecosystem.
