Digital Turbine, Inc. (NASDAQ: APPS) provides technology and services designed to connect the major participants in the mobile ecosystem. The company serves advertisers and brands seeking mobile user acquisition, application developers looking to increase downloads and engagement, digital publishers seeking advertising revenue, mobile network operators, and original equipment manufacturers that ...Digital Turbine, Inc. (NASDAQ: APPS) provides technology and services designed to connect the major participants in the mobile ecosystem. The company serves advertisers and brands seeking mobile user acquisition, application developers looking to increase downloads and engagement, digital publishers seeking advertising revenue, mobile network operators, and original equipment manufacturers that want to improve the content and application experience on connected devices. Its headquarters are in Austin, Texas, and its platform has an international presence spanning North America, Europe, the Middle East, Africa, Asia Pacific, China, Mexico, Central America, and South America.
The company organizes its business around on-device media and in-app media activities. Its on-device platform supports application discovery and distribution through integrations with carriers and device manufacturers. These integrations can enable applications, recommendations, news, weather, sports, and other content to be presented during device setup or through device-level experiences. This positioning gives Digital Turbine access to mobile users before or outside traditional application-store interactions. The company also provides content-media capabilities, including sponsored and editorial content, and advertising formats intended to generate engagement and monetization.
Its in-app media operations include technologies associated with AdColony and Fyber. These businesses support mobile advertising across display, native, video, and programmatic formats. The platform is intended to help advertisers reach targeted audiences, while giving application developers and publishers tools to monetize their digital inventory. The economic model is primarily software- and advertising-platform based rather than manufacturing based; consequently, the company generally does not rely on a physical bill-of-materials structure or large inventory investments. Core cost categories are more likely to include personnel, research and development, sales and marketing, infrastructure, platform operations, partner revenue shares, depreciation, amortization, and acquisition-related expenses.
The supplied data identifies William Gordon Stone, commonly referred to as Bill Stone, as chief executive officer. Digital Turbine reported approximately 620 full-time employees, placing it in the 501-1000 employee category. The company was originally incorporated in Delaware in 1998 and later developed from a mobile-content and application-distribution business into a broader mobile growth platform through product development, carrier and OEM relationships, and acquisitions.
Financially, the supplied trailing-twelve-month data indicates approximately 49.1% gross margin and 14.6% EBITDA margin, while net profit margin was negative 4.5%. Reported operating cash flow was positive, but free cash flow to equity was negative in the cited period, reflecting the effects of capital expenditure, financing structure, and other cash requirements. The balance sheet included meaningful debt and intangible assets, consistent with a technology company that has expanded through acquisitions. Key strategic priorities include increasing adoption of its Ignite and on-device products, improving advertiser and publisher performance, expanding carrier and OEM distribution, strengthening programmatic advertising capabilities, and returning the business to more consistent profitable growth.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$565.3M
+15.2%
+9.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-37.7M
+59.0%
+78.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+48.6%
+8.0%
+553.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+6.0%
+154.6%
-2.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-6.7%
+64.4%
+80.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$11.2M
+171.7%
+1289.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+2.0%
+162.2%
+1189.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
192.0%
-29.3%
-3.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.16x
+6.5%
+3.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and welcome to the Digital Turbine Reports -- Fiscal 2027 First Quarter Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead.
Brian Bartholomew: Thank you. Good afternoon and welcome to the Digital Turbine Fiscal 2027 First Quarter Earnings Conference Call. Joining me today on the call to discuss our results are CEO Bill Stone and Interim CFO Josh Kinsell. Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we filed with the Securities and Exchange Commission. Also, during this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures, as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now I'd like to turn the call over to our CEO, Bill Stone.
William Stone: Thanks, Brian. Good afternoon, everyone. I want to open my remarks by recognizing our team for delivering another quarter of strong results that exceeded our expectations. The results are even more encouraging as they are not due to any single factor, but due to many factors. And I'll break those down in my prepared remarks, which will be across 3 areas. First, we'll be looking back at our June quarter results. Second will be some commentary on the operational and strategic elements of our business that are enabling us to raise our guidance for the remainder of the fiscal year. And then finally, I want to provide some commentary on AI and macroeconomic trends in our business. Revenue for the June quarter came in at $166 million, representing 27% year-over-year growth. We also achieved nearly 70% year-over-year growth in adjusted EBITDA during the same period, demonstrating significant operating leverage in our model as we scale. I'm also pleased with the dramatic improvement in our balance sheet that benefits from our strong results. Last June quarter, our net leverage ratio was greater than 5 turns. Today, we're at a healthy 2.5 turns and as …
