Digital Turbine Revenue Rises 27% to $178.7 Million in Second Quarter
Key Facts
Digital Turbine reported revenue of $178.7 million in the second quarter of fiscal 2027, ended September 30, 2026, up 27% from $140.4 million in the year-earlier period, according to a company release via PR Newswire. The company posted net income of $10.3 million, or $0.06 per diluted share, under generally accepted accounting principles, compared with a net loss of $21.4 million and a loss of $0.20 per share a year earlier. On a non-GAAP basis, adjusted net income was $23.4 million, or $0.18 per share, versus $16.5 million and $0.15 per share in the year-earlier quarter. Adjusted EBITDA rose to $39.8 million, up 46% year over year from $27.2 million. The results show revenue and adjusted profitability growth alongside a shift in GAAP net income from a loss to a profit.
Growth came from both of the company's segments, with faster expansion at App Growth Platform. On Device Solutions net revenue before intercompany eliminations was $115.6 million, up 20% year over year, while App Growth Platform revenue before those eliminations was $63.5 million, up 42%. Chief Executive Bill Stone said revenue grew more than 20% in both segments during the quarter and operating leverage efficiency helped lift adjusted EBITDA 46%. He added that "revenue growth of more than 20% in both segments, together with operating leverage efficiency, enabled us to deliver 46% growth in adjusted EBITDA during the quarter." The comparison between the segments shows that App Growth Platform grew faster than On Device Solutions, while operating performance, according to the company, helped turn revenue growth into a larger increase in adjusted earnings.
Free cash flow, under the company's non-GAAP measure, was $10.5 million in the second fiscal quarter. The company also disclosed that it had revised prior financial statements after identifying additional immaterial expenses related to contractual revenue shares. It said revenue share expense for the period ended June 30, 2026, had been understated by $3.5 million, with a corresponding effect on accrued liabilities. The company said the revision did not affect reported net cash from operating activities or its compliance with debt covenants. The revision relates to a prior period, while the reported revenue and earnings figures cover the quarter ended September 30, 2026.
Digital Turbine raised its fiscal 2027 revenue outlook range to $670–690 million, from $650–670 million in the outlook it issued after first-quarter results. It kept its full-year adjusted EBITDA outlook at $145–155 million, the same range announced after the first quarter. The company reported annual revenue of $565.3 million in fiscal 2026, up 15% from fiscal 2025. The updated outlook follows revenue of $178.7 million in the second quarter, with year-over-year growth in both segments, according to the company's disclosure. The company is scheduled to hold its second-quarter earnings call on November 9, 2026, at 4:30 p.m. Eastern Time, with a replay available through November 16.
The company's shares, listed under the ticker APPS, closed at $10.38 on November 6, 2026. The investor relations calendar had set the earnings call for November 9 at 4:30 p.m. Eastern Time, with a replay available through November 16. On October 30, the company announced that it had rescheduled the call to the new time. The call gives investors an opportunity to hear management's presentation of the results and updated outlook. The available data do not include the stock's opening price or its session high and low on November 6.