Digital Turbine (APPS1) AI Stock Analysis

Digital Turbine

(BMV:APPS1)

Rating:―N/A

Action:N/A

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Positive Factors

Raised Growth GuidanceHigher revenue and adjusted EBITDA guidance indicates management sees durable demand and improving operating leverage across the platform. The raised outlook, supported by a strong quarter, provides a constructive foundation for continued growth and earnings expansion over the next several quarters.

Negative Factors

Persistent GAAP LossesDespite stronger revenue and adjusted EBITDA, Digital Turbine has not yet established consistent GAAP profitability. Continued losses can constrain retained capital, reduce financial flexibility, and make the improvement in adjusted results less durable until earnings convert more fully into net income.

Digital Turbine (APPS1) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 1.08B
Dividend Yield: ―
Average Volume (3M): 4,142
Price to Earnings (P/E): -39.3
Beta (1Y): -1.13
Revenue Growth: 8.40%
EPS Growth: 63.66%
Country: Mexico
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:Aug 03, 2026(Q1-2027)|% Change Since:47.30%|Next Earnings Date:Nov 08, 2026

Earnings Call SentimentPositive

The call presents a broadly positive operational and financial story: double-digit revenue growth, large adjusted EBITDA expansion and margin improvement, substantial AGP momentum, improved cash generation, and strengthened leverage with raised fiscal guidance. Identified risks include an outstanding accounting adjustment affecting GAAP results, a still-substantial absolute debt balance, ongoing device supply-chain headwinds, and potential lumpiness of brand budgets. Overall, the company emphasized multiple growth drivers (AI, data, distribution flywheel, Ignite, alternative apps) and appears to have momentum that outweighs the listed risks.

Positive Updates

Strong Top-Line Growth

Revenue of $166.0M in the June quarter, up 27% year-over-year, extending fiscal 2026 exit momentum.

Negative Updates

GAAP Loss and Accounting Uncertainty

GAAP net loss of $3.2M (improved from $14.1M year-ago), but management noted a finalizing non-cash adjustment in the Form 10-Q that may be recorded against beginning retained earnings and could impact the GAAP net loss (uncertainty remains).

Company Guidance

Management raised fiscal 2027 guidance to revenue of $650–$670 million (up from $630–$650M) and adjusted EBITDA of $145–$155 million (up from $135–$145M), driven by a strong Q1: revenue $166M (+27% YoY), adjusted EBITDA $42.5M (+69% YoY) with a 25.6% EBITDA margin (gross margin 49.4%), On‑Device Solutions $110M (+15% YoY) and App Growth Platform $56.6M (+56% YoY); balance sheet and cash flow also improved with cash $43.2M, total debt ~$352.9M, net leverage ~2.5x (down from >5x last June quarter), cash from operations $17.9M, non‑GAAP free cash flow $11.3M, non‑GAAP net income $24.1M ($0.19/sh on 125.6M diluted shares), and run‑rate revenue per employee >$1M.

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

Financial Indicators

MX:APPS1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

MX:APPS1 and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	MX:APPS1	Digital Turbine Inc.	184.13	97.63	112.87%

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