Digital Turbine Inc
NASDAQ:APPS
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Digital Turbine Inc
NASDAQ:APPS
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Digital Turbine Inc
Digital Turbine helps mobile device makers, wireless carriers, and app developers place apps and advertising on smartphones before and after a phone is sold. Its software is often built into the phone setup process, so it can show app recommendations, manage app downloads, and connect advertisers with users at the point when a device is first turned on. It also sells media and marketing services that help app companies acquire users. The company makes money mainly from software and advertising-related fees. Device makers and carriers use its tools to improve the phone setup experience and to create a new source of service revenue, while app developers and advertisers pay for access to users and for app installs. In practice, Digital Turbine sits between the handset industry and the app economy, helping turn a phone into a distribution channel for software and ads. What makes the business different is that it is tied closely to the mobile device ecosystem rather than to a standalone consumer app. Its value comes from being integrated into the phone launch and setup flow, where it can influence what users download first. That gives it a role in app distribution, mobile advertising, and device monetization all at once.
Digital Turbine helps mobile device makers, wireless carriers, and app developers place apps and advertising on smartphones before and after a phone is sold. Its software is often built into the phone setup process, so it can show app recommendations, manage app downloads, and connect advertisers with users at the point when a device is first turned on. It also sells media and marketing services that help app companies acquire users.
The company makes money mainly from software and advertising-related fees. Device makers and carriers use its tools to improve the phone setup experience and to create a new source of service revenue, while app developers and advertisers pay for access to users and for app installs. In practice, Digital Turbine sits between the handset industry and the app economy, helping turn a phone into a distribution channel for software and ads.
What makes the business different is that it is tied closely to the mobile device ecosystem rather than to a standalone consumer app. Its value comes from being integrated into the phone launch and setup flow, where it can influence what users download first. That gives it a role in app distribution, mobile advertising, and device monetization all at once.
Beat and raise: Digital Turbine reported June quarter revenue of $166 million, up 27% year over year, and raised full-year fiscal 2027 guidance for both revenue and adjusted EBITDA.
Profitability improved: Adjusted EBITDA rose 69% year over year to $42.5 million, with margin expanding to 25.6%, showing stronger operating leverage.
International strength: On-device solutions revenue grew 15% overall, driven by international device growth and higher revenue per device, with international ODS up nearly 80% year over year.
AGP momentum: Application Growth Platform revenue rose 56% year over year, led by DTX up 54% and brand business up more than 70%.
AI tailwind: Management said AI is helping automate operations, improve advertiser outcomes, and shift traffic toward apps, which they view as a major growth driver.
Balance sheet: Net leverage improved to 2.5 turns from more than five turns a year ago, and the company also lowered borrowing costs after meeting leverage thresholds.
