Digital Turbine, Inc. (APPS)

Price$10.71Cached quoteAs of 2026-09-06 01:49 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because improving profits are offset by costly debt and weak cash conversion.

The quote values the shares near $1.43 billion and the whole business, including net debt, near $1.74 billion. That is roughly 11–12 times management’s projected adjusted profit before interest, taxes, depreciation, and selected charges. It is also about 21 times the latest full-year adjusted earnings, or 16 times the latest quarter annualized. Those multiples are reasonable for current growth, but trailing free cash flow—cash left after operations and capital spending—was only about $11 million. The balanced evidence supports a fair-priced verdict.

Big pictureSales and operating profit are recovering, but lasting cash generation remains unproven.

Revenue rose 15% to $565 million in the year ended March 2026 after falling from $748 million in 2022. The June quarter strengthened further: revenue grew 27%, and operating income improved to $23 million from a $5 million loss. Yet the company still reported an $11 million net loss after $32 million of interest and other expense. Operating cash was $18 million; subtracting $7 million of capital spending left roughly $11 million. Advertising and app-install demand can fluctuate, so one strong quarter does not establish durable cash generation.

Business strengthValuable distribution relationships support growth, while heavy borrowing and a rising share count weaken protection.

Digital Turbine’s software reaches users through device makers, phone carriers, and apps; the faster-growing App Growth Platform increased June-quarter revenue 56%. Near-term liquidity is adequate, with $333 million of current assets versus $277 million of current liabilities. However, cash was only $43 million against $356 million of debt, while the average borrowing rate reached 11.65%. Shares outstanding increased about 14% in one year. A $55 million share sale helped repay debt, and lenders hold warrants for another 1.22 million shares. No dividends or meaningful buybacks offset this dilution.

What could change the storyFaster cash growth and lower borrowing could create upside; issuing more shares would erase it.

The strongest bull case is delivery of management’s raised outlook: $650–$670 million of revenue and $145–$155 million of adjusted operating profit for the year ending March 2027. The Orange rollout could expand on-device distribution, although no revenue commitment was disclosed. The bear case is that cash again trails adjusted profit while interest consumes roughly $50 million annually. As an inference, sustained quarterly free cash flow above $15 million and net debt below $250 million would strengthen the valuation case. Growth stalling while net debt stays above $300 million—or further large share issuance—would weaken it.

AI: News

Outlook Raised AgainStrong quarterly growth and higher annual targets sharply improved expectations, although reported earnings remained negative.

Digital Turbine reported on August 5 that June-quarter revenue increased 27% to $166 million, while its adjusted profit before interest, taxes, depreciation, and selected charges rose 69% to $42.5 million. Management raised annual revenue guidance to $650–$670 million and its comparable adjusted-profit range to $145–$155 million. The shares closed 38% higher that session. The timing strongly associates the move with the results, though it does not prove the announcement was the only cause.

Turnaround AcceleratedFull-year results confirmed renewed growth and prompted a major market reappraisal of the recovery.

On May 26, the company reported March-quarter revenue growth of 20% and a 53% increase in its adjusted operating-profit measure. Full-year revenue grew 15% to $565 million, while the reported net loss narrowed to $38 million from $92 million. Initial guidance called for another year of double-digit growth. Financial reporting observed the shares up about 53% during the following session, linking the reaction to the earnings beat and outlook; broader trading influences cannot be excluded.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$565.3M	$490.5M	$544.5M	$665.9M	$747.6M	$313.6M	$138.7M	$103.6M	$74.8M	$40.2M	$22.3M	$28.3M	$24.4M	$3.9M	$7.2M	$9.2M
Gross profit	$321.6M	$255.2M	$282.3M	$356.7M	$376.9M	$134.9M	$55.1M	$35.6M	$25.1M	$11.3M	$1.5M	$6.1M	$7.8M	$2.2M	$4.4M	$6.0M
Gross margin	56.90%	52.03%	51.84%	53.56%	50.42%	43.03%	39.74%	34.34%	33.52%	28.00%	6.56%	21.70%	32.15%	56.03%	60.26%	65.06%
Research & development	$40.5M	$39.5M	$54.2M	$56.5M	$52.7M	$20.1M	$12.0M	$10.9M	$9.7M	$9.3M	$4.9M	$7.9M	$7.9M	$1.3M	$2.2M	$3.5M
Operating expenses	$531.2M	$544.6M	$918.9M	$619.8M	$655.4M	$254.4M	$125.5M	$100.1M	$30.9M	$28.2M	$24.0M	$29.9M	$23.4M	$13.2M	$21.3M	$17.4M
Operating income	$34.0M	−$54.1M	−$374.4M	$46.2M	$92.2M	$59.2M	$13.2M	$3.4M	−$5.8M	−$17.0M	−$22.5M	−$23.7M	−$15.5M	−$11.0M	−$17.0M	−$11.5M
Operating margin	6.02%	−11.02%	−68.77%	6.93%	12.34%	18.88%	9.52%	3.33%	−7.77%	−42.21%	−101.27%	−84.02%	−63.61%	−286.10%	−234.73%	−124.91%
EBITDA	$105.5M	$28.8M	−$290.6M	$127.2M	$149.7M	$66.3M	$15.6M	$6.2M	−$3.1M	−$14.4M	−$14.7M	−$21.6M	−$13.7M	−$10.4M	−$16.5M	−$10.8M
EBITDA margin	18.66%	5.88%	−53.37%	19.11%	20.02%	21.15%	11.21%	6.00%	−4.21%	−35.73%	−65.89%	−76.56%	−56.01%	−269.34%	−228.80%	−117.96%
Net income	−$37.7M	−$92.1M	−$420.2M	$16.7M	$35.5M	$54.9M	$13.9M	−$6.0M	−$52.9M	−$24.3M	−$28.0M	−$24.6M	−$18.7M	−$14.2M	−$30.7M	−$9.4M
Net profit margin	−6.68%	−18.78%	−77.18%	2.50%	4.75%	17.50%	10.02%	−5.80%	−70.71%	−60.35%	−125.98%	−87.24%	−76.64%	−367.34%	−424.72%	−102.16%
Basic EPSper basic share	-$0.33	-$0.89	-$4.16	$0.17	$0.37	$0.62	$0.17	-$0.08	-$0.75	-$0.36	-$0.46	-$0.63	-$0.68	-$0.81	-$3.11	-$1.25
Diluted EPSper diluted share	-$0.33	-$0.89	-$4.16	$0.16	$0.35	$0.57	$0.16	-$0.08	-$0.75	-$0.36	-$0.46	-$0.63	-$0.68	-$0.81	-$3.11	-$1.25

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

7.73%of listed shares

BlackRock, Inc.9.35M shares · Jun 30, 2026

View holders

Top 20 reported holders of APPS
Holder	% owned
BlackRock, Inc.	7.73%9.35M shares
AIGH Capital Management LLC	5.41%6.55M shares
D. E. Shaw & Co., Inc.	4.19%5.07M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.12%4.98M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	3.57%4.32M shares
Granahan Investment Management, LLC	2.89%3.49M shares
GEODE CAPITAL MANAGEMENT, LLC	2.41%2.91M shares
TWO SIGMA INVESTMENTS, LP	2.32%2.8M shares
STATE STREET CORP	2.19%2.65M shares
BANK OF AMERICA CORP /DE/	2.16%2.62M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.97%2.38M shares
Invesco Ltd.	1.85%2.24M shares
DIMENSIONAL FUND ADVISORS LP	1.68%2.03M shares
RENAISSANCE TECHNOLOGIES LLC	1.66%2M shares
STONE WILLIAM GORDON III	≈1.44%1.75M shares
UBS Group AG	1.43%1.73M shares
JANE STREET GROUP, LLC	1.43%1.73M shares
GOLDMAN SACHS GROUP INC	1.12%1.35M shares
SILVERCREST ASSET MANAGEMENT GROUP LLC	0.87%1.05M shares
Manatuck Hill Partners, LLC	0.86%1.04M shares

Percentages use 120.94M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$573.5K disclosed value

Sells (SEC code S)1$2.3K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Feb 23, 2026Form 4	Kinsell JoshuaChief Accounting Officer	SellCommon Stock	578	$4.06	$2.3K	277.8K
Mar 10, 2025Form 4	STONE WILLIAM GORDON IIIChief Executive Officer	BuyCommon Stock	100.0K	$2.59	$259.0K	1.76M
Nov 27, 2024Form 4	STERLING MICHELLE MDirector	BuyCommon Stock · indirect	7.0K	$1.43	$10.0K	24.6K
Nov 26, 2024Form 4	Chestnutt Roy HDirector	BuyCommon Stock	7.0K	$1.42	$9.9K	216.4K
Nov 20, 2024Form 4	Karish JeffDirector	BuyCommon Stock	5.0K	$1.39	$6.9K	416.9K

Review ownership filings at SEC.gov ↗

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Digital Turbine, Inc. (APPS)

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