Digital Turbine (4MD) AI Stock Analysis

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Digital Turbine

(Frankfurt:4MD)

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Positive Factors

Scaled platform footprintThe company’s large device and app footprint gives it broad distribution and monetization reach across advertisers, publishers, and ecosystem partners. This scale can support more diversified demand and supply, improving the platform’s ability to compound growth over multiple quarters.

Negative Factors

Gross margin pressureFalling gross margin and higher revenue-share obligations reduce the amount of each revenue dollar available to fund operations and profit. If the mix and associated costs remain unfavorable, strong top-line growth may translate into less durable earnings and cash-flow expansion.

Digital Turbine (4MD) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 927.62M
Dividend Yield: ―
Average Volume (3M): 848
Price to Earnings (P/E): -685.6
Beta (1Y): 1.55
Revenue Growth: 15.77%
EPS Growth: 96.75%
Country: Germany
Employees: 620
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Digital Turbine Business Overview & Revenue Model

Company Description

Digital Turbine, Inc. is a company that delivers a robust mobile growth ecosystem for a diverse set of clients, including advertisers, content creators, mobile network operators, and device manufacturers. Its business operations are structured into t...

Digital Turbine Earnings Call Summary

Earnings Call Date:Nov 09, 2026(Q2-2027)|% Change Since:-35.76%|Next Earnings Date:Feb 10, 2027

Earnings Call SentimentPositive

The call was strongly positive, with broad-based revenue growth, substantial adjusted EBITDA and cash flow improvement, a higher fiscal-year revenue outlook, international expansion, and increasing traction from AI and first-party data. The main challenges were lower gross margin, higher revenue-share and direct costs, macro headwinds in device volumes, some moderation against tougher AppGrowth Platform comparisons, and unchanged EBITDA guidance while the company invests in AI and data.

Positive Updates

Strong Quarterly Revenue Growth

Fiscal 2027 second-quarter net revenue was $178.7 million, up 27% year over year, with growth across both the On-Device Solutions and AppGrowth Platform segments.

Negative Updates

Gross Margin Decline

Non-GAAP gross margin declined to 43% from 47% in the year-ago period.

Company Guidance

Digital Turbine raised fiscal 27 revenue guidance to a range of $670 million to $690 million from $650 million to $670 million, reflecting a $20 million increase, and reaffirmed adjusted EBITDA guidance of $145 million to $155 million. The company anticipates making incremental measured investments in AI in the second half of the year to drive its 5 growth initiatives and long term growth, while Orange and the new tier 1 EU operator are not expected to be material in the top line guide for the back end of this fiscal year but are expected to be growth drivers for next fiscal year.

Digital Turbine Risk Analysis

Digital Turbine disclosed 52 risk factors in its most recent earnings report. Digital Turbine reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.our revenue.Q1, 2026

2.We may not achieve the expected benefits of our transformation program and similar measures we take in the future, and our efforts may adversely affect our business.Q1, 2026

3.The development and use of AI in our business, combined with an uncertain regulatory environment, may adversely affect our business, reputation, financial condition, or results of operations.Q1, 2026

Digital Turbine Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:4MD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSP	71Outperform	$781.13M	32.62	7.84%	―	27.52%	318.58%
PUBM	70Outperform	$944.99M	-515.25	-0.60%	―	4.30%	83.10%
SPT	69Neutral	$684.89M	-25.87	-12.46%	―	10.73%	44.80%
CRNC	62Neutral	$358.22M	-21.82	-9.84%	―	25.84%	42.54%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

DE:4MD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:4MD	Digital Turbine Inc.	6.52	2.18	50.33%
CRNC	Cerence Inc	7.92	0.05	0.64%
SPT	Sprout Social Inc Class A	11.64	2.02	21.00%
PUBM	Pubmatic Inc	20.61	11.42	124.27%
DSP	Viant Technology, Inc.	11.92	2.18	22.38%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Digital Turbine AI Stock Analysis