This article first appeared on GuruFocus.
Release Date: November 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Digital Turbine Inc (NASDAQ:APPS) reported a strong quarter with revenue of $140.4 million, representing an 18% year-over-year growth.
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The company achieved a 78% year-over-year growth in adjusted EBITDA, showcasing significant operating leverage.
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International revenues for the on-device solutions business exceeded 25% of total ODS revenues for the first time, driven by 80% year-over-year growth.
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The application growth platform business returned to year-over-year growth, posting $45 million in revenue, up 20% year-over-year.
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The company successfully completed a debt refinancing through a new 4-year term loan facility, providing additional financial flexibility.
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Digital Turbine Inc (NASDAQ:APPS) reported a GAAP net loss of $21.4 million, or $0.20 per share, in the fiscal second quarter.
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Despite revenue growth, cash operating expenses remained flat year over year at $38.9 million, indicating potential challenges in cost management.
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The competitive landscape remains robust, with other large players still present in the market.
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The company is still in the early stages of leveraging AI and first-party data, which may take time to fully realize its potential benefits.
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The macro environment and regulatory changes pose uncertainties that could impact the company’s alternative app distribution strategy.
Q: Bill, can you discuss the acceleration in the brand business and the ROI that new customers are experiencing? Also, any updates on the potential for additional single tap partnerships by year-end? A: Bill Stone, CEO: The integration of our platforms is starting to show results, with double-digit increases in our brand business. Direct brand relationships accounted for nearly half of our total brand revenue in the September quarter. Regarding single tap, we saw a 50% increase in installs quarter over quarter, indicating strong progress.
Q: How penetrated is the international market, and can you provide more details on the revenue per device (RPD) growth? A: Bill Stone, CEO: We saw solid double-digit growth in international RPDs year over year, contributing to an 80% increase in international revenue. For the first time, international revenues exceeded 25% of our total ODS revenues, driven by more devices and better demand.
