Digital Turbine Reports Strong Q3 2026 Earnings Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy APPS?
Source: seekingalpha
- Significant Revenue Growth: Digital Turbine's total revenue for Q3 reached $151.4 million, reflecting a 12% year-over-year increase, with the On Device Solutions segment contributing nearly $100 million, up approximately 9% from last year, indicating strong performance in international markets.
- Substantial EBITDA Improvement: The adjusted EBITDA for the quarter was $38.8 million, representing a 76% year-over-year increase, with an EBITDA margin of 26% and a non-GAAP gross margin of 49%, showcasing significant progress in operational efficiency and profitability.
- Strengthened Financial Position: The company repaid over $41 million in debt during the quarter, reducing its debt leverage ratio from more than 5 turns a year ago to approximately 3 turns, demonstrating efforts to enhance its balance sheet and increase financial flexibility for future growth.
- Optimistic Outlook: Management raised the fiscal 2026 revenue guidance to a range of $553 million to $558 million and adjusted EBITDA guidance to $114 million to $117 million, reflecting confidence in sustained growth, particularly in international expansion and new product adoption.
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Analyst Views on APPS
Wall Street analysts forecast APPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APPS is 8.75 USD with a low forecast of 7.50 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 5.040
Low
7.50
Averages
8.75
High
10.00
Current: 5.040
Low
7.50
Averages
8.75
High
10.00
About APPS
Digital Turbine, Inc., through its subsidiaries, operates an independent mobile growth platform that levels up the landscape for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The Company operates through two segments: On Device Solutions (ODS) and App Growth Platform (AGP). The ODS segment consists of products and services that simplify the discovery and delivery of mobile apps and content media for device end-users. The AGP segment consists of Advertising Solutions and Ad Monetization Solutions. The Company offers end-to-end products and solutions leveraging proprietary technology to all participants in the mobile application ecosystem, enabling brand discovery and advertising, user acquisition and engagement, and operational efficiency for advertisers. In addition, the Company’s products and solutions provide monetization opportunities for OEMs, carriers, and app publishers and developers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Digital Turbine Reports Strong Q3 2026 Earnings Growth
- Significant Revenue Growth: Digital Turbine's total revenue for Q3 reached $151.4 million, reflecting a 12% year-over-year increase, with the On Device Solutions segment contributing nearly $100 million, up approximately 9% from last year, indicating strong performance in international markets.
- Substantial EBITDA Improvement: The adjusted EBITDA for the quarter was $38.8 million, representing a 76% year-over-year increase, with an EBITDA margin of 26% and a non-GAAP gross margin of 49%, showcasing significant progress in operational efficiency and profitability.
- Strengthened Financial Position: The company repaid over $41 million in debt during the quarter, reducing its debt leverage ratio from more than 5 turns a year ago to approximately 3 turns, demonstrating efforts to enhance its balance sheet and increase financial flexibility for future growth.
- Optimistic Outlook: Management raised the fiscal 2026 revenue guidance to a range of $553 million to $558 million and adjusted EBITDA guidance to $114 million to $117 million, reflecting confidence in sustained growth, particularly in international expansion and new product adoption.
See More
Take-Two Interactive Beats Q3 Earnings Estimates, Raises Outlook
- Earnings Beat: Take-Two Interactive reported Q3 earnings of $1.23 per share, exceeding the consensus estimate of $0.83 by 47.48%, indicating strong profitability and market confidence.
- Revenue Growth: The company achieved quarterly revenue of $1.76 billion, surpassing analyst expectations of $1.59 billion and up from $1.37 billion year-over-year, reflecting the sustained popularity of its product lineup.
- Optimistic Outlook: CEO Strauss Zelnick stated that due to outstanding performance across all labels, the company is raising its net bookings outlook for fiscal 2026, projecting record levels for fiscal 2027, which will enhance profitability and financial flexibility.
- Positive Stock Reaction: Following the earnings report, Take-Two's stock rose 4.63% to $221.99 in after-hours trading, reflecting increased market confidence in its growth potential.
See More
Digital Turbine Exceeds Q3 Earnings Expectations
- Earnings Beat: Digital Turbine reported Q3 earnings of $0.18 per share, surpassing analyst expectations of $0.12 by 56.52%, indicating a significant improvement in profitability and boosting market confidence in future growth.
- Revenue Growth: The quarterly revenue reached $151.4 million, exceeding the Street estimate of $145.73 million, demonstrating robust revenue growth amid strong market demand and solidifying the company's market position.
- EBITDA Surge: Non-GAAP adjusted EBITDA was $38.8 million, reflecting a 76% year-over-year increase, showcasing the company's success in cost control and operational efficiency, which enhances investor confidence in its profitability.
- Positive Outlook: The company raised its fiscal 2026 revenue outlook to a range of $553 million to $558 million, indicating management's confidence in future business growth, which may attract more investor interest in its stock.
See More
Digital Turbine Reports 12% Revenue Growth in Q3
- Significant Revenue Growth: Digital Turbine's total revenue for Q3 reached $151.4 million, reflecting a 12% year-over-year increase from $134.6 million in Q3 2025, showcasing the company's strong demand and execution in the mobile advertising market.
- Net Income Turnaround: The company reported a GAAP net income of $5.1 million for Q3, translating to an EPS of $0.03, a remarkable recovery from a net loss of $23.1 million and an EPS loss of $0.22 in the same quarter of 2025, indicating a substantial improvement in financial health.
- Non-GAAP Adjusted Net Income: For Q3, the non-GAAP adjusted net income was $21.7 million, with an EPS of $0.18, significantly up from $14.2 million and $0.13 per share in Q3 2025, reflecting enhanced profitability and operational performance.
- EBITDA Surge: The non-GAAP adjusted EBITDA for Q3 soared to $38.8 million, representing a 76% increase compared to $22.0 million in Q3 2025, underscoring the company's advancements in operational efficiency and cost management.
See More
Digital Turbine Set to Announce Q3 Earnings on February 3rd
- Earnings Announcement: Digital Turbine (APPS) is set to release its Q3 earnings on February 3rd after market close, with consensus EPS estimate at $0.12 and revenue estimate at $145.72 million, indicating strong investor interest in the company's performance.
- Historical Performance Review: Over the last two years, Digital Turbine has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, reflecting the company's stability in profitability and revenue growth, which bolsters market confidence.
- Expectation Revision Dynamics: In the past three months, there have been no upward revisions to EPS estimates and one downward revision, while revenue estimates saw one upward revision, indicating a cautious market outlook on the company's future performance that may influence investor decisions.
- Growth Outlook Analysis: Digital Turbine's stock surged 25% due to AI-driven growth and raised its FY26 revenue outlook to $550 million, demonstrating accelerated growth in international markets and showcasing strong business recovery potential.
See More
Digital Turbine to Host Q3 FY2026 Financial Results Call on February 3
- Conference Call Announcement: Digital Turbine will host a conference call on February 3, 2026, at 4:30 PM ET to discuss its fiscal Q3 2026 financial results and operational progress, providing investors with crucial financial insights.
- Executive Leadership: The call will be led by CEO Bill Stone and CFO Steve Lasher, ensuring that investors receive direct analysis and outlook from top management, thereby enhancing transparency.
- Multiple Access Options: Investors can join the call via a webcast link or by dialing 888-317-6003 in the U.S. (or 412-317-6061 internationally), offering various access methods to accommodate different investor needs and increase participation.
- Playback Availability: For those unable to attend live, a replay will be available until February 10, 2026, ensuring all stakeholders can access important information, further strengthening communication between the company and its investors.
See More
Digital Turbine Reports Strong Q3 2026 Earnings Growth
- Significant Revenue Growth: Digital Turbine's total revenue for Q3 reached $151.4 million, reflecting a 12% year-over-year increase, with the On Device Solutions segment contributing nearly $100 million, up approximately 9% from last year, indicating strong performance in international markets.
- Substantial EBITDA Improvement: The adjusted EBITDA for the quarter was $38.8 million, representing a 76% year-over-year increase, with an EBITDA margin of 26% and a non-GAAP gross margin of 49%, showcasing significant progress in operational efficiency and profitability.
- Strengthened Financial Position: The company repaid over $41 million in debt during the quarter, reducing its debt leverage ratio from more than 5 turns a year ago to approximately 3 turns, demonstrating efforts to enhance its balance sheet and increase financial flexibility for future growth.
- Optimistic Outlook: Management raised the fiscal 2026 revenue guidance to a range of $553 million to $558 million and adjusted EBITDA guidance to $114 million to $117 million, reflecting confidence in sustained growth, particularly in international expansion and new product adoption.
See More
Take-Two Interactive Beats Q3 Earnings Estimates, Raises Outlook
- Earnings Beat: Take-Two Interactive reported Q3 earnings of $1.23 per share, exceeding the consensus estimate of $0.83 by 47.48%, indicating strong profitability and market confidence.
- Revenue Growth: The company achieved quarterly revenue of $1.76 billion, surpassing analyst expectations of $1.59 billion and up from $1.37 billion year-over-year, reflecting the sustained popularity of its product lineup.
- Optimistic Outlook: CEO Strauss Zelnick stated that due to outstanding performance across all labels, the company is raising its net bookings outlook for fiscal 2026, projecting record levels for fiscal 2027, which will enhance profitability and financial flexibility.
- Positive Stock Reaction: Following the earnings report, Take-Two's stock rose 4.63% to $221.99 in after-hours trading, reflecting increased market confidence in its growth potential.
See More
Digital Turbine Exceeds Q3 Earnings Expectations
- Earnings Beat: Digital Turbine reported Q3 earnings of $0.18 per share, surpassing analyst expectations of $0.12 by 56.52%, indicating a significant improvement in profitability and boosting market confidence in future growth.
- Revenue Growth: The quarterly revenue reached $151.4 million, exceeding the Street estimate of $145.73 million, demonstrating robust revenue growth amid strong market demand and solidifying the company's market position.
- EBITDA Surge: Non-GAAP adjusted EBITDA was $38.8 million, reflecting a 76% year-over-year increase, showcasing the company's success in cost control and operational efficiency, which enhances investor confidence in its profitability.
- Positive Outlook: The company raised its fiscal 2026 revenue outlook to a range of $553 million to $558 million, indicating management's confidence in future business growth, which may attract more investor interest in its stock.
See More
Digital Turbine Reports 12% Revenue Growth in Q3
- Significant Revenue Growth: Digital Turbine's total revenue for Q3 reached $151.4 million, reflecting a 12% year-over-year increase from $134.6 million in Q3 2025, showcasing the company's strong demand and execution in the mobile advertising market.
- Net Income Turnaround: The company reported a GAAP net income of $5.1 million for Q3, translating to an EPS of $0.03, a remarkable recovery from a net loss of $23.1 million and an EPS loss of $0.22 in the same quarter of 2025, indicating a substantial improvement in financial health.
- Non-GAAP Adjusted Net Income: For Q3, the non-GAAP adjusted net income was $21.7 million, with an EPS of $0.18, significantly up from $14.2 million and $0.13 per share in Q3 2025, reflecting enhanced profitability and operational performance.
- EBITDA Surge: The non-GAAP adjusted EBITDA for Q3 soared to $38.8 million, representing a 76% increase compared to $22.0 million in Q3 2025, underscoring the company's advancements in operational efficiency and cost management.
See More
Digital Turbine Set to Announce Q3 Earnings on February 3rd
- Earnings Announcement: Digital Turbine (APPS) is set to release its Q3 earnings on February 3rd after market close, with consensus EPS estimate at $0.12 and revenue estimate at $145.72 million, indicating strong investor interest in the company's performance.
- Historical Performance Review: Over the last two years, Digital Turbine has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, reflecting the company's stability in profitability and revenue growth, which bolsters market confidence.
- Expectation Revision Dynamics: In the past three months, there have been no upward revisions to EPS estimates and one downward revision, while revenue estimates saw one upward revision, indicating a cautious market outlook on the company's future performance that may influence investor decisions.
- Growth Outlook Analysis: Digital Turbine's stock surged 25% due to AI-driven growth and raised its FY26 revenue outlook to $550 million, demonstrating accelerated growth in international markets and showcasing strong business recovery potential.
See More
Digital Turbine to Host Q3 FY2026 Financial Results Call on February 3
- Conference Call Announcement: Digital Turbine will host a conference call on February 3, 2026, at 4:30 PM ET to discuss its fiscal Q3 2026 financial results and operational progress, providing investors with crucial financial insights.
- Executive Leadership: The call will be led by CEO Bill Stone and CFO Steve Lasher, ensuring that investors receive direct analysis and outlook from top management, thereby enhancing transparency.
- Multiple Access Options: Investors can join the call via a webcast link or by dialing 888-317-6003 in the U.S. (or 412-317-6061 internationally), offering various access methods to accommodate different investor needs and increase participation.
- Playback Availability: For those unable to attend live, a replay will be available until February 10, 2026, ensuring all stakeholders can access important information, further strengthening communication between the company and its investors.
See More
