Digital Turbine, Inc. reported fiscal third‑quarter 2026 results that surpassed analyst expectations, with revenue rising 12% year‑over‑year to $151.4 million and non‑GAAP earnings per share of $0.18, a $0.06 beat over the consensus estimate of $0.12. GAAP net income returned to profitability at $5.1 million, or $0.03 per share, reversing a $23.1 million loss in the same quarter a year earlier.
The revenue lift was driven by a $99.6 million gain in On‑Device Solutions and a $52.6 million increase in the App Growth Platform, reflecting strong demand for the company’s alternative app distribution and single‑tap acquisition technology. The On‑Device Solutions segment benefited from expanded international deployments, while the App Growth Platform saw a 19% year‑over‑year rise in revenue, driven by higher pricing and a broader customer base.
Margins expanded as the company’s high‑margin software business grew faster than its cost base. Non‑GAAP gross margin climbed to 49% from 44% a year earlier, and adjusted EBITDA margin reached 26%, the seventh consecutive quarter of growth. The improvement was largely due to a favorable product mix and operational leverage, offsetting modest cost increases from ongoing AI and machine‑learning investments.
Management raised its full‑year 2026 revenue outlook to $553 million–$558 million and adjusted EBITDA guidance to $114 million–$117 million, up from the prior guidance of $100 million–$105 million. The upward revision signals confidence in sustained demand for the company’s core platforms and a belief that the recent momentum will continue through the year. The company also reiterated its focus on cost discipline and high‑margin software expansion.
CEO Bill Stone highlighted regulatory shifts in the mobile ecosystem as a tailwind, noting that changes to Apple and Google’s app store policies are opening new distribution channels for Digital Turbine’s technology. CFO Steve Lasher emphasized the role of cost‑control initiatives and strategic investments in high‑return verticals in driving the EBITDA jump. The company also warned of a material weakness in internal controls, a reminder of ongoing governance challenges. Investors responded favorably to the results, citing the strong earnings beat, margin expansion, and optimistic guidance as key drivers of the positive market reaction.
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