Digital Turbine Inc【APPS】株式ニュース

Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial ResultsMay 26, 2026 4:05 PM
PR Newswire (US) Fourth Quarter Net Revenue Totaled $142.5 Million, Representing Year-over-Year Growth of 20%Fourth Quarter GAAP Net Loss of $7.3 Million and GAAP EPS of ($0.06); Fourth Quarter Non-GAAP Adjusted Net Income1 of $19.7 Million and Non-GAAP Adjusted EPS1 of $0.16Fourth Quarter Non-GAAP Adjusted EBITDA2 Totaled $31.4 Million, Representing Year-over-Year Growth of 53%Fiscal Year 2026 Net Revenue Totaled $565.3 Million, Representing Year-over-Year Growth of 15% Fiscal Year 2026 GAAP Net Loss of $37.7 Million and GAAP EPS of ($0.33); Fiscal Year 2026 Non-GAAP Adjusted Net Income1 of $64.9 Million and Non-GAAP Adjusted EPS1 of $0.56Fiscal Year 2026 Non-GAAP Adjusted EBITDA2 Totaled $122.5 Million, Representing Year-over-Year Growth of 69%AUSTIN, Texas, May 26, 2026 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal fourth quarter and fiscal year ended March 31, 2026. Recent Financial Highlights:Fiscal fourth quarter of 2026 revenue totaled $142.5 million, representing an increase of 20% year-over-year as compared to the fiscal fourth quarter of 2025.GAAP net loss for the fiscal fourth quarter of 2026 was $7.3 million, or ($0.06) per share. Non-GAAP adjusted net income1 for the fiscal fourth quarter of 2026 was $19.7 million, or $0.16 per share, as compared to non-GAAP adjusted net income1 of $11.3 million, or $0.10 per share, in the fiscal fourth quarter of 2025.Non-GAAP adjusted EBITDA2 for the fiscal fourth quarter of 2026 was $31.4 million, representing an increase of 53% year-over-year as compared to non-GAAP adjusted EBITDA2 of $20.5 million in the fiscal fourth quarter of 2025.Fiscal year 2026 revenue totaled $565.3 million, representing an increase of 15% as compared to fiscal year 2025.Fiscal year 2026 GAAP net loss was $37.7 million, or ($0.33) per share. Fiscal year 2026 non-GAAP adjusted net income1 was $64.9 million, or $0.56 per share.Fiscal year 2026 non-GAAP adjusted EBITDA2 was $122.5 million, representing an increase of 69% as compared to fiscal year 2025."Fiscal 2026 was a successful year for Digital Turbine. Emboldened by our upside financial performance and ongoing business momentum, we are pleased to provide guidance above current estimates for fiscal 2027," said Bill Stone, CEO. "I am extremely proud of the Company's overall execution, as we returned the business to double-digit revenue and adjusted EBITDA growth with notable gross margin expansion, while simultaneously strengthening the balance sheet and strategically positioning the Company for the future. One of the key factors for our markedly improved performance has been our ability to more effectively utilize our unique first-party data in order to drive better results for our rapidly expanding global network of advertisers, publishers, carriers and OEMs. Our ability to leverage valuable new AI tools and partnerships to maximize the value of our extensive data array has been, and will continue to be, a meaningful contributor to growth."Fiscal 2026 Fourth Quarter Financial ResultsTotal net revenue for the fourth quarter of fiscal 2026 was $142.5 million, representing year-over-year growth of 20% as compared to net revenue of $119.2 million for the fourth quarter of fiscal 2025. Total On Device Solutions net revenue before intercompany eliminations was $91.0 million, representing year-over-year growth of 5%. Total App Growth Platform net revenue before intercompany eliminations was $52.1 million, representing year-over year growth of 57%.GAAP net loss for the fourth quarter of fiscal 2026 was $7.3 million, or ($0.06) per share, as compared to GAAP net loss for the fourth quarter of fiscal 2025 of $18.8 million, or ($0.18) per share.Non-GAAP adjusted net income1 for the fourth quarter of fiscal 2026 was $19.7 million, or $0.16 per share, as compared to non-GAAP adjusted net income1 of $11.3 million, or $0.10 per share, in the fourth quarter of fiscal 2025.Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2026 was $31.4 million, representing year-over-year growth of 53% as compared to non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2025 of $20.5 million.Full Year Fiscal 2026 Financial ResultsTotal net revenue for fiscal 2026 was $565.3 million, representing year-over-year growth of 15% as compared to total revenue of $490.5 million for fiscal 2025.GAAP net loss for fiscal 2026 was $37.7 million, or ($0.33) per share, as compared to GAAP net loss for fiscal 2025 of $92.1 million, or ($0.89) per share.Non-GAAP adjusted net income1 for fiscal 2026 was $64.9 million, or $0.56 per share, as compared to non-GAAP adjusted net income1 for fiscal 2025 of $38.7 million, or $0.37 per share.Non-GAAP adjusted EBITDA2 for fiscal 2026 was $122.5 million, representing year-over-year growth of 69% as compared to fiscal 2025 non-GAAP adjusted EBITDA2 of $72.3 million.Business OutlookBased on information available as of May 26, 2026, the Company currently expects the following for fiscal year 2027 :Revenue of between $630 million and $650 millionNon-GAAP adjusted EBITDA2 of between $135 million and $145 millionIt is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company's stock price, or other items that are difficult to predict with precision.About Digital Turbine, Inc.Digital Turbine empowers superior mobile consumer experiences and results for the world's leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners' abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com. Conference CallManagement will host a conference call and webcast today at 4:30p.m. ET to discuss its fourth quarter and fiscal 2026 financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https://app.webinar.net/W6z15Q47g98. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 6034141. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine's website. The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.For those unable to join the live call, a playback will be available through June 2nd, 2026. The replay can be accessed by dialing 855-669-9658 in the United States or 412-317-0088 from international locations, passcode 2613496.An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.Use of Non-GAAP Financial MeasuresTo supplement the Company's consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share ("EPS"), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management's internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.1Non-GAAP adjusted net income (loss) and EPS are defined as GAAP net income (loss) and EPS adjusted to exclude the effect of the following, if any: stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent consideration, contract settlement fees, impairment of goodwill, tax adjustments, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment of debt, the amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific August 29, 2025 debt refinance transaction and related issuance of warrants. Readers are cautioned that non-GAAP adjusted net income (loss) and EPS should not be construed as an alternative to comparable GAAP net income (loss) figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.2Non-GAAP adjusted EBITDA is calculated as GAAP net income (loss) excluding the following cash and non-cash expenses, if any: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent consideration, impairment of goodwill, severance costs, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs, and exit and duration fees, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment of debt, the amortization of debt discount, issuance costs and exit and duration fees, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific August 29, 2025 debt refinance transaction and related issuance of warrants. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding the following, if any: transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.4Non-GAAP gross profit is defined as GAAP income (loss) from operations adjusted to exclude the effect of the following, if any: product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, impairment of goodwill and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company's financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.Forward-Looking StatementsThis news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:Risks Specific to our BusinessWe may not achieve the expected benefits of our transformation program and similar measures we take in the future, and our efforts may adversely affect our business.We have a history of net losses.We have a limited operating history for our current portfolio of assets.Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial, and economic risks as a result of our international operations.Our financial results could vary significantly from quarter-to-quarter and are difficult to predict.A significant portion of our revenue is derived from a limited number of wireless carriers and customers.The development and use of artificial intelligence ("AI") in our business, combined with an uncertain regulatory environment, may adversely affect our business, reputation, financial condition, and results of operations.System security risks, data protection breaches, cyber-attacks, and systems integration issues could disrupt our business.Our business may involve the use, transmission, and storage of confidential information and personally identifiable information, and the failure to properly safeguard such information could result in significant reputational harm and monetary damages.The effects of the current and any future general downturns in the United States ("U.S"). and the global economy, including financial market disruptions.Our products, services, and systems rely on software that is highly technical, and if it contains errors or viruses, our business could be adversely affected.Our business and reputation could be impacted by information technology system failures and network disruptionsOur business may suffer if we are unable to hire and retain key talent.Our corporate culture has contributed to our success, and if we cannot maintain this culture, we could lose the innovation, creativity, passion, and teamwork that we believe contribute to our success and our business may be harmed.If we make future acquisitions, this could require significant management attention and disrupt our business.Adverse developments affecting the financial services industry, including events involving liquidity, defaults or non-performance, could adversely affect our business, financial condition, and results of operations.Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks.Litigation may harm our business.Risks Related to the Mobile Advertising IndustryThe mobile advertising business is an intensely competitive industry, and we may not be able to compete successfully.The markets for our products and services are rapidly evolving and may decline or experience limited growth.Our business is dependent on the continued growth in usage of smartphones and other mobile connected devices.Wireless technologies are changing rapidly, and we may not be successful in working with these new technologies.The complexity of and incompatibilities among mobile devices may require us to use additional resources for the development of our products and services.If wireless subscribers do not continue to use their mobile devices to access mobile content and other applications, our business growth and future revenue may be adversely affected.A shift of technology platform by wireless carriers and mobile device manufacturers could lengthen the development period for our offerings, increase our costs, and cause our offerings to be published later than anticipated.Actual or perceived security vulnerabilities in devices or wireless networks could adversely affect our revenue.We may be subject to legal liability associated with providing mobile and online services.Risks of public health issues, such as a major epidemic or pandemic.Risk related to geopolitical conditions and the global economy, including conflicts, financial markets, inflation, global supply chain, and tariffs.Risk related to the geopolitical relationship between the U.S. and China or changes in China's economic and regulatory landscape, including recent tariff increases and trade tensions.Industry Regulatory RisksWe are subject to rapidly changing and increasingly stringent laws, regulations and contractual requirements related to privacy, data security, and protection of children.We are subject to anti-bribery, anti-corruption, and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation.We are subject to governmental economic sanction requirements and export and import controls that could impair our ability to compete in international markets.Our ability to use our net operating losses, credits, and certain other tax attributes to offset future taxable income or taxes may be subject to certain limitations.Regulatory requirements pertaining to the marketing, advertising, and promotion of our products and services.Government regulation of our marketing methods could restrict or prevent our ability to adequately advertise and promote our content, products, and services available in certain jurisdictions.Risks Related to Our Intellectual Property and Potential LiabilityThird parties may obtain and improperly use our intellectual property; and if so, our competitive position may be adversely affected, particularly if we do not, or are unable to, adequately protect our intellectual property rights.Third parties may sue us for intellectual property infringement, which may prevent or limit our use of the intellectual property and disrupt our business and could require us to pay significant damage awards.Our platform contains open source software.Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, damages caused by malicious software, and other losses.Risks Relating to Our Common Stock and Capital StructureWe have significant indebtedness, which could limit our financial flexibility.To service our debt and fund our other obligations and capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control.The market price of our common stock is likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the current price or the price at which you purchased your shares.Risk of not being able to raise capital to grow our business.Risk to trading volume of lack of securities or industry analysts research coverage.If our goodwill becomes impaired, we may be required to record significant charges to earnings.A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in material misstatements in our financial statements.Maintaining and improving financial controls and being a public company may strain resources.Anti-takeover provisions in our charter documents could make an acquisition of our company more difficult.Our bylaws designate Delaware as the exclusive forum for certain disputes.Other risks described in the risk factors in Item 1A of Annual Report under the heading "Risk Factors."You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.Investor Relations Contact:
Brian Bartholomew
Digital Turbine, Inc.
brian.bartholomew@digitalturbine.com  Digital Turbine, Inc. and SubsidiariesCondensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)(in thousands, except share and per share amounts)

Three Months Ended March 31,
Year EndedMarch 31,

2026
2025
2026
2025Net revenue
$    142,549
$    119,152
$    565,251
$   490,506Costs of revenue and operating expenses

Revenue share
57,982
53,195
243,638
235,287Other direct costs of revenue
12,720
9,359
46,971
34,541Product development
9,458
9,114
40,476
39,464Sales and marketing
15,639
14,014
58,000
61,642General and administrative
36,235
45,162
142,124
173,647Total costs of revenue and operating expenses
132,034
130,844
531,209
544,581Income (loss) from operations
10,515
(11,692)
34,042
(54,075)Interest and other income (expense), net

Change in fair value of contingent consideration
—
—
(231)
(300)Interest expense, net
(16,782)
(8,855)
(58,580)
(34,783)Unrealized gain on derivatives
2,239
—
1,504
—Foreign exchange transaction gain
499
418
3,536
1,297Loss on extinguishment of debt
—
—
(9,795)
—Other expense, net
(15)
(24)
(1,816)
(3)Total interest and other expense, net
(14,059)
(8,461)
(65,382)
(33,789)Loss before income taxes
(3,544)
(20,153)
(31,340)
(87,864)Income tax expense (benefit)
3,796
(1,327)
6,392
4,235Net loss
(7,340)
(18,826)
(37,732)
(92,099)Other comprehensive income

Foreign currency translation gain (loss)
802
826
(462)
(2,349)Comprehensive loss
$     (6,538)
$    (18,000)
$    (38,194)
$   (94,448)Net loss per common share

Basic
$       (0.06)
$       (0.18)
$       (0.33)
$     (0.89)Diluted
$       (0.06)
$       (0.18)
$       (0.33)
$     (0.89)Weighted average common shares outstanding

Basic
120,048
105,427
112,923
103,747Diluted
120,048
105,427
112,923
103,747 Digital Turbine, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Unaudited)(in thousands, except par value and share amounts)

March 31,

2026
2025ASSETS

Current assets

Cash, cash equivalents, and restricted cash
$     37,960
$     40,084Accounts receivable, net
251,240
181,770Prepaid expenses
6,060
6,923Value-added tax receivable
4,461
8,291Other current assets
12,149
5,711Total current assets
311,870
242,779Property and equipment, net
49,111
46,966Right-of-use assets
7,739
9,924Intangible assets, net
217,448
257,697Goodwill
223,053
221,741Other non-current assets
32,433
33,747TOTAL ASSETS
$    841,654
$    812,854

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable
$    132,807
$    139,944Accrued revenue share
87,215
35,264Accrued compensation
22,408
7,503Acquisition purchase price liabilities
436
1,697Current portion of long-term debt
7,031
—Other current liabilities
18,402
38,118Total current liabilities
268,299
222,526Long-term debt, net
353,932
408,687Derivative liabilities
2,164
—Deferred tax liabilities, net
15,818
16,308Other non-current liabilities
9,280
11,375Total liabilities
649,493
658,896Commitments and contingencies

Stockholders' equity

Preferred stock

Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized,
100,000 issued and outstanding (liquidation preference of $1)
100
100Common stock

$0.0001 par value: 200,000,000 shares authorized; 121,073,328 issued and 120,315,203
outstanding at March 31, 2026; 106,735,767 issued and 105,977,642 outstanding at March 31,
2025
10
10Additional paid-in capital
969,062
892,665Treasury stock (758,125 shares at March 31, 2026 and March 31, 2025)
(71)
(71)Accumulated other comprehensive loss
(51,766)
(51,304)Accumulated deficit
(725,174)
(687,442)Total stockholders' equity
192,161
153,958TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$    841,654
$    812,854 Digital Turbine, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited)(in thousands)

Three Months Ended March 31,
Year ended
March 31,

2026
2025
2026
2025Cash flows from operating activities:

Net loss
$     (7,340)
$    (18,826)
$    (37,732)
$    (92,099)Adjustments to reconcile net loss to net cash provided by
operating activities:

Depreciation and amortization
16,684
23,126
71,452
82,910 Amortization of debt discount, issuance costs, and exit and
duration fees
5,994
545
13,933
1,835 Provision for credit losses on accounts receivable
44
623
233
2,767 Unrealized gain on derivatives
(2,239)
—
(1,504)
— Foreign exchange transaction gain
(499)
(418)
(3,536)
(1,297) Stock-based compensation expense
4,142
8,126
16,355
33,543 Loss on extinguishment of debt
—
—
9,795
— Change in fair value of contingent consideration
—
—
231
300 Non-cash lease expense
895
788
3,502
3,179 Change in deferred income taxes
4,232
1,298
(654)
(4,054) Changes in operating assets and liabilities:

Accounts receivable
(6,150)
16,847
(70,192)
5,823Prepaid expenses
1,442
(18)
922
777Value-added tax receivable
6,089
(640)
4,386
(3,570)Other current assets
3,587
(423)
(4,848)
613Right-of-use asset
(1,149)
108
(1,061)
(3,928)Other non-current assets
786
237
1,814
939Accounts payable
5,563
(7,961)
(7,183)
(19,345)Accrued revenue share
(6,908)
927
51,827
1,418Accrued compensation
4,987
(1,081)
14,767
298Other current liabilities
(26,103)
(10,007)
(21,415)
2,410Other non-current liabilities
324
(1,743)
713
(639)Net cash provided by operating activities
4,381
11,508
41,805
11,880Cash flows from investing activities

Capital expenditures
(7,447)
(6,944)
(30,619)
(27,477)Net cash used in investing activities
(7,447)
(6,944)
(30,619)
(27,477)Cash flows from financing activities

Proceeds from borrowings, net of original issue discount
—
—
418,700
38,000 Payment of debt issuance costs
—
—
(20,486)
(1,627) Payment of deferred business acquisition consideration
(106)
—
(1,263)
— Repayment of debt obligations
—
—
(466,000)
(13,000) Proceeds from issuance of common stock in connection
with at-the-market offering, net of issuance costs of $1,337
—
—
56,809
— Payment of withholding taxes for net share settlement of
equity awards
(432)
(234)
(937)
(465) Proceeds from options exercised
6
270
2,313
373 Net cash provided by (used in) financing activities
(532)
36
(10,864)
23,281

Three Months Ended March 31,
Year Ended March 31,

2026
2025
2026
2025Effect of exchange rate changes on cash and cash equivalents
and restricted cash
1,135
170
(2,446)
(1,205)Net change in cash and cash equivalents and restricted cash
(2,463)
4,770
(2,124)
6,479Cash and cash equivalents and restricted cash, beginning of
period
40,423
35,314
40,084
33,605Cash and cash equivalents and restricted cash, end of period
$     37,960
$     40,084
$     37,960
$     40,084

Reconciliation of cash, cash equivalents, and restricted cash

Cash and cash equivalents
$     37,719
$     39,393
$     37,719
$     39,393Restricted cash
$        241
$        691
$        241
$        691Total cash, cash equivalents, and restricted cash
$     37,960
$     40,084
$     37,960
$     40,084

Supplemental disclosure of cash flow information

Interest paid
$     11,061
$      7,986
$     47,088
$     35,583Income taxes paid
$     14,193
$      5,592
$     26,295
$      7,150

Supplemental disclosure of non-cash investing and financing
activities

Assets acquired not yet paid
$        233
$        519
$        233
$        519Stock-based compensation included in capitalized software
development costs
$        382
$        232
$      1,857
$      1,024Fair value of unpaid contingent consideration in connection
with business acquisitions
$          —
$      1,664
$          —
$      1,664 Net Revenue By Segment(in thousands)(Unaudited)

Three Months Ended March 31,
Year Ended March 31,

2026
2025
% Change
2026
2025
% ChangeOn Device Solutions
$     90,961
$     86,832
5 %
$     382,429
$     341,632
12 %App Growth Platform
52,149
33,250
57 %
185,742
153,229
21 %Elimination
(561)
(930)
(40) %
(2,920)
(4,355)
(33) %Total net revenue
$    142,549
$    119,152
20 %
$     565,251
$     490,506
15 % GAAP Income (Loss) From Operations to Non-GAAP Gross Profit(in thousands)(Unaudited)

Three Months Ended March 31,
Year Ended March 31,

2026
2025
2026
2025Income (loss) from operations
$   10,515
$  (11,692)
$    34,042
$   (54,075)Add-back items:

Product development
9,458
9,114
40,476
39,464Sales and marketing
15,639
14,014
58,000
61,642General and administrative
36,235
45,162
142,124
173,647Depreciation of software included in other direct costs of
revenue
—
6
—
208Contract settlement fees
—
—
—
3,800Non-GAAP gross profit
$   71,847
$   56,604
$   274,642
$   224,686Non-GAAP gross profit percentage
50 %
48 %
49 %
46 %

GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income(in thousands)(Unaudited)

Three Months Ended March 31,
Year Ended March 31,

2026
2025
2026
2025Net loss
$   (7,340)
$  (18,826)
$   (37,732)
$   (92,099)Add-back items:

Stock-based compensation expense
4,142
8,126
16,355
33,543Amortization of intangibles
8,868
13,429
41,598
55,612Change in fair value of contingent consideration
—
—
231
300Tax adjustment(1)
10,240
7,165
21,589
29,551Business transformation costs
—
84
31
2,060Transaction-related expenses
—
152
—
359Severance costs
53
666
595
3,711Contract settlement fees
—
—
—
3,800Amortization of debt discount, issuance costs, and exit
and duration fees(2)
5,994
536
13,933
1,826Loss on extinguishment of debt
—
—
9,795
—Unrealized gain on derivatives
(2,239)
—
(1,504)
—Non-GAAP adjusted net income
$   19,718
$   11,332
$    64,891
$    38,663Non-GAAP adjusted net income per common share
$      0.16
$      0.10
$       0.56
$       0.37Weighted average common shares outstanding, diluted
122,791
108,150
116,776
105,810________

(1) Valuation allowance

(2) During the fiscal year ended March 31, 2026, the Company revised its non-GAAP definitions to include non-cash interest expense. Prior-
period presentations for the three months and year ended March 31, 2025, have been recast to conform to the current period presentation. GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA(in thousands)(Unaudited)

Three Months Ended March 31,
Year Ended March 31,

2026
2025
2026
2025Net loss
$     (7,340)
$    (18,826)
$     (37,732)
$     (92,099)Add-back items:

Stock-based compensation expense
4,142
8,126
16,355
33,543Depreciation and amortization
16,684
23,126
71,452
82,910Interest expense, net
16,782
8,855
58,580
34,783Other expense, net
15
24
1,816
3Change in fair value of contingent consideration
—
—
231
300Business transformation costs
—
84
31
2,060Loss on extinguishment of debt
—
—
9,795
—Foreign exchange transaction gain
(499)
(418)
(3,536)
(1,297)Income tax expense (benefit)
3,796
(1,327)
6,392
4,235Transaction-related expenses
—
152
—
359Severance costs
53
666
595
3,711Contract settlement fees
—
—
—
3,800Unrealized gain on derivatives
(2,239)
—
(1,504)
—Non-GAAP adjusted EBITDA
$     31,394
$     20,462
$     122,475
$       72,308 GAAP Cash Flow From Operating Activities to Non-GAAP Free Cash Flow(in thousands)(Unaudited)

Three Months Ended March 31,
Year EndedMarch 31,

2026
2025
2026
2025Net cash provided by operating activities
$      4,381
$     11,508
$     41,805
$     11,880Capital expenditures
(7,447)
(6,944)
(30,619)
(27,477)Transaction-related expenses
—
152
—
359Severance costs
53
666
595
3,711Business transformation costs
—
84
31
2,060Non-GAAP free cash flow provided by (used in) operations
$     (3,013)
$      5,466
$     11,812
$     (9,467) View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2026-fourth-quarter-and-fiscal-year-2026-financial-results-302782127.htmlSOURCE Digital Turbine, Inc. Original: Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results

Digital Turbine Reports Fiscal 2026 Third Quarter Financial ResultsFebruary 3, 2026 4:05 PM
PR Newswire (US)

Third Quarter Revenue Totaled $151.4 Million, Representing Year-over-Year Growth of 12%Third Quarter GAAP Net Income of $5.1 Million and GAAP EPS of $0.03; Third Quarter Non-GAAP Adjusted Net Income1 of $21.7 Million and Non-GAAP Adjusted EPS1 of $0.18Third Quarter Non-GAAP Adjusted EBITDA2 Totaled $38.8 Million, Representing Year-over-Year Growth of 76%AUSTIN, Texas, Feb. 3, 2026 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2025.Recent Financial Highlights:Fiscal third quarter of 2026 revenue totaled $151.4 million, representing an increase of 12% year-over-year as compared to the fiscal third quarter of 2025.GAAP net income for the fiscal third quarter of 2026 was $5.1 million, or $0.03 per share, as compared to GAAP net loss for the fiscal third quarter of 2025 of $23.1 million, or ($0.22) per share. Non-GAAP adjusted net income1 for the fiscal third quarter of 2026 was $21.7 million, or $0.18 per share, as compared to Non-GAAP adjusted net income1 of $14.2 million, or $0.13 per share, in the fiscal third quarter of 2025.Non-GAAP adjusted EBITDA2 for the fiscal third quarter of 2026 was $38.8 million, representing an increase of 76% year-over-year as compared to Non-GAAP adjusted EBITDA2 of $22.0 million in the fiscal third quarter of 2025.Non-GAAP free cash flow3 totaled $6.4 million in the fiscal third quarter of 2026."Our December quarter results reflected a continuance of our positive business momentum," said Bill Stone, CEO. "I was particularly pleased with the breadth and diversity of our results, which were driven by strong demand, expanding global supply, and great execution by our team. Collectively, it enabled us to once again deliver upside results and raise our full-year fiscal 2026 outlook. The market opportunity in front of us is expanding quickly, as mobile app publishers and advertisers look to capitalize on newly available ways to promote app usage and profitability. Provided that we continue to execute and align our resources effectively to facilitate the evolving demand trends, we are well positioned to capitalize on the wealth of opportunities that lie ahead."Fiscal 2026 Third Quarter Financial ResultsTotal revenue for the third quarter of fiscal 2026 was $151.4 million, representing year-over-year growth of 12% as compared to revenue of $134.6 million for the third quarter of fiscal 2025. Total On Device Solutions revenue before intercompany eliminations was $99.6 million. Total App Growth Platform revenue before intercompany eliminations was $52.6 million.GAAP net income for the third quarter of fiscal 2026 was $5.1 million, or $0.03 per share, as compared to GAAP net loss for the third quarter of fiscal 2025 of $23.1 million, or ($0.22) per share.Non-GAAP adjusted net income1 for the third quarter of fiscal 2026 was $21.7 million, or $0.18 per share, as compared to Non-GAAP adjusted net income1 of $14.2 million, or $0.13 per share, in the third quarter of fiscal 2025.Non-GAAP adjusted EBITDA2 for the third quarter of fiscal 2026 was $38.8 million, representing year-over-year growth of 76% as compared to Non-GAAP adjusted EBITDA2 for the third quarter of fiscal 2025 of $22.0 million.Business OutlookBased on information available as of February 3, 2026, the Company is raising its expectations for fiscal year 2026 to the following:Revenue of between $553 million and $558 millionNon-GAAP adjusted EBITDA2 of between $114 million and $117 millionIt is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company's stock price, or other items that are difficult to predict with precision.About Digital Turbine, Inc.Digital Turbine empowers superior mobile consumer experiences and results for the world's leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners' abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com. Conference CallManagement will host a conference call and webcast today at 4:30p.m. ET to discuss its fiscal 2026 third quarter financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed via webcast link: https://app.webinar.net/0Z1gnza8lmQ. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 8758955. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine's website. The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.For those unable to join the live call, a playback will be available through February 10th, 2026. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 6108249.An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.Use of Non-GAAP Financial MeasuresTo supplement the Company's consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share ("EPS"), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management's internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.1Non-GAAP adjusted net income and EPS are defined as GAAP net income and EPS adjusted to exclude the effect of the following, if any: stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent consideration, contract settlement fees, impairment of goodwill, tax adjustments, (gain)/loss on extinguishment of debt, amortization of debt discount, issuance costs, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment, the amortization of debt discount and issuance costs, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific September 2, 2025 debt refinance transaction and related issuance of warrants. Readers are cautioned that non-GAAP adjusted net income and EPS should not be construed as an alternative to comparable GAAP net income figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.2Non-GAAP adjusted EBITDA is calculated as GAAP net income excluding the following cash and non-cash expenses, if any: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent consideration, impairment of goodwill, severance costs, (gain)/loss on extinguishment of debt, amortization of debt discount and issuance costs, and unrealized (gain)/loss on derivatives. The Company added (gain)/loss on extinguishment, the amortization of debt discount, issuance costs, and unrealized (gain)/loss on derivatives due to their unusual nature and association with the Company's specific September 2, 2025 debt refinance transaction and related issuance of warrants. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding the following, if any: transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.4Non-GAAP gross profit is defined as GAAP income from operations adjusted to exclude the effect of the following, if any: product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, impairment of goodwill and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company's financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.Forward-Looking StatementsThis news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:Risks Specific to our BusinessOur transformation activities and reduction in force may not adequately reduce our operating costs or improve our operating margins or cash flows, may lead to additional workforce attrition and may cause operational disruptions.We have a history of net losses.We have a limited operating history for our current portfolio of assets.Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial and economic risks as a result of our international operations.Our financial results could vary significantly from quarter-to-quarter and are difficult to predict.A significant portion of our revenue is derived from a limited number of wireless carriers and customers.The risk of impairment of our goodwill.The effects of the current and any future general downturns in the U.S. and the global economy, including financial market disruptions.Our products, services and systems rely on software that is highly technical, and if it contains errors or viruses, our business could be adversely affected.Our business may involve the use, transmission and storage of confidential information and personally identifiable information, and the failure to properly safeguard such information could result in significant reputational harm and monetary damages.Our business and reputation could be impacted by information technology system failures and network disruptionsSystem security risks and cyber-attacks could disrupt our internal operations or information technology services provided to customers.Our business and growth may suffer if we are unable to hire and retain key talent.Our corporate culture has contributed to our success, and if we cannot maintain this culture, we could lose the innovation, creativity, passion, and teamwork that we believe contribute to our success and our business may be harmed.If we make future acquisitions, this could require significant management attention and disrupt our business.Adverse effects of negative developments affecting the financial services industry, including events or concerns involving liquidity, defaults, or non-performance by financial institutions.Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks.Litigation may harm our business.Risks Related to the Mobile Advertising IndustryThe mobile advertising business is an intensely competitive industry, and we may not be able to compete successfully.The markets for our products and services are rapidly evolving and may decline or experience limited growth.Our business is dependent on the continued growth in usage of smartphones and other mobile connected devices.Wireless technologies are changing rapidly, and we may not be successful in working with these new technologies.The complexity of and incompatibilities among mobile devices may require us to use additional resources for the development of our products and services.If wireless subscribers do not continue to use their mobile devices to access mobile content and other applications, our business growth and future revenue may be adversely affected.A shift of technology platform by wireless carriers and mobile device manufacturers could lengthen the development period for our offerings, increase our costs, and cause our offerings to be published later than anticipated.Actual or perceived security vulnerabilities in devices or wireless networks could adversely affect our revenue.We may be subject to legal liability associated with providing mobile and online services.Risks of public health issues, such as a major epidemic or pandemic.Risk related to geopolitical conditions and the global economy, including conflicts, financial markets, inflation, global supply chain, and tariffs.Risk related to the geopolitical relationship between the U.S. and China or changes in China's economic and regulatory landscape, including recent tariff increases and trade tensions.Industry Regulatory RisksWe are subject to rapidly changing and increasingly stringent laws, regulations and contractual requirements related to privacy, data security, and protection of children.We are subject to anti-corruption, import/export, government sanction, and similar laws, especially related to our international operations.Government regulation of our marketing methods could restrict or prevent our ability to adequately advertise and promote our content, products and services available in certain jurisdictions.Limitations may negatively affect our ability to use our net operating losses, credits, and certain other tax attributes to offset future taxable income.Regulatory requirements pertaining to the marketing, advertising, and promotion of our products and services.Risks Related to Our Intellectual Property and Potential LiabilityThird parties may obtain and improperly use our intellectual property; and if so, our competitive position may be adversely affected, particularly if we do not, or are unable to, adequately protect our intellectual property rightsThird parties may sue us for intellectual property infringement, which may prevent or limit our use of the intellectual property and disrupt our business and could require us to pay significant damage awards.Our platform contains open source software.Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, damages caused by malicious software, and other losses.Risks Relating to Our Common Stock and Capital StructureWe have secured and unsecured indebtedness, which could limit our financial flexibility.To service our debt and fund our other obligations and capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control.The market price of our common stock is likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the current price or the price at which you purchased your shares.Risk of not being able to raise capital to grow our business.Risk to trading volume of lack of securities or industry analysts research coverage.A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in material misstatements in our financial statements.Maintaining and improvising financial controls and being a public company may strain resources.Anti-takeover provisions in our charter documents could make an acquisition of our company more difficult.Our bylaws designate Delaware as the exclusive forum for certain disputes.Other risks described in the risk factors in Item 1A of our latest Annual Report on Form 10-K under the heading "Risk Factors" and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.Investor Relations Contact:
Brian Bartholomew
Digital Turbine, Inc.
brian.bartholomew@digitalturbine.com  Digital Turbine, Inc. and SubsidiariesCondensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)(in thousands, except share and per share amounts)

Three months ended December 31,
Nine months ended December 31,

2025
2024
2025
2024Net revenue
$     151,399
$          134,637
$   422,702
$   371,354Costs of revenue and operating expenses

Revenue share
64,425
69,947
185,656
182,092Other direct costs of revenue
12,205
8,954
34,251
25,182Product development
9,892
10,203
31,018
30,350Sales and marketing
14,326
15,494
42,361
47,628General and administrative
28,897
42,792
105,889
128,485Total costs of revenue and operating expenses
129,745
147,390
399,175
413,737Income (loss) from operations
21,654
(12,753)
23,527
(42,383)Interest and other income (expense), net

Change in fair value of contingent consideration
(231)
(500)
(231)
(300)Interest expense, net
(13,561)
(7,913)
(33,859)
(24,638)Amortization of debt discount and issuance costs
(4,007)
(533)
(7,939)
(1,290)Unrealized loss on derivatives
1,600
—
(735)
—Foreign exchange transaction gain
2,815
1,037
3,037
879Loss on extinguishment of debt
—
—
(9,795)
—Other income (expense), net
74
(57)
(1,801)
21Total interest and other expense, net
(13,310)
(7,966)
(51,323)
(25,328)Income (loss) before income taxes
8,344
(20,719)
(27,796)
(67,711)Income tax provision
3,237
2,412
2,596
5,562Net income (loss)
5,107
(23,131)
(30,392)
(73,273)Other comprehensive loss

Foreign currency translation loss
(3,260)
(4,119)
(1,264)
(3,175)Comprehensive income (loss)
1,847
(27,250)
(31,656)
(76,448)Net income (loss) per common share

Basic
$            0.04
$              (0.22)
$       (0.27)
$       (0.71)Diluted
$            0.03
$              (0.22)
$       (0.27)
$       (0.71)Weighted-average common shares outstanding

Basic
115,921
104,148
110,593
103,201Diluted
120,474
104,148
110,593
103,201 Digital Turbine, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands, except par value and share amounts)

December 31, 2025
March 31, 2025

(Unaudited)

ASSETS

Current assets

Cash, cash equivalents, and restricted cash
$               40,423
$             40,084Accounts receivable, net
245,324
181,770Prepaid expenses
7,529
6,923Value-added tax receivable
10,552
8,291Other current assets
14,246
5,711Total current assets
318,074
242,779Property and equipment, net
48,984
46,966Right-of-use assets
7,577
9,924Intangible assets, net
226,961
257,697Goodwill
223,788
221,741Other non-current assets
32,791
33,747TOTAL ASSETS
$             858,175
$           812,854

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable
$             127,538
$           139,944Accrued revenue share
94,123
35,264Accrued compensation
17,459
7,503Acquisition purchase price liabilities
540
1,697Short-term debt, net of debt discount and issuance costs
4,688
—Other current liabilities
43,801
38,118Total current liabilities
288,149
222,526Long-term debt, net of debt discount and issuance costs
350,280
408,687Derivative liabilities
4,402
—Deferred tax liabilities, net
11,698
16,308Other non-current liabilities
9,044
11,375Total liabilities
663,573
658,896Commitments and contingencies

Stockholders' equity

Preferred stock

Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1)
100
100Common stock

$0.0001 par value: 200,000,000 shares authorized; 120,372,292 issued and 119,614,167 outstanding at December 31, 2025; 106,735,767 issued and 105,977,642 outstanding at March 31, 2025
10
10Additional paid-in capital
964,965
892,665Treasury stock (758,125 shares at December 31, 2025 and March 31, 2025)
(71)
(71)Accumulated other comprehensive loss
(52,568)
(51,304)Accumulated deficit
(717,834)
(687,442)Total stockholders' equity
194,602
153,958TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$             858,175
$           812,854 Digital Turbine, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited)(in thousands)

Three months ended December 31,

2025
2024Cash flows from operating activities:

Net (loss) income
$              5,107
$          (23,131)Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization
16,565
19,613Amortization of debt discount and issuance costs
4,007
533Allowance for credit losses
(653)
846Unrealized loss on derivatives
(1,600)
—Stock-based compensation expense
495
8,250Change in estimate of remaining contingent consideration
231
500Non-cash lease expense
860
811Foreign exchange transaction gain
(2,815)
(1,037)(Increase) decrease in assets:

Accounts receivable, gross
(38,841)
(9,091)Prepaid expenses
(1,413)
143Value-added tax receivable
(860)
(661)Other current assets
(6,286)
618Right-of-use asset
26
(573)Other non-current assets
353
284Increase (decrease) in liabilities:

Accounts payable
15,462
(7)Accrued revenue share
13,690
5,022Accrued compensation
4,323
1,244Other current liabilities
8,028
9,719Deferred income taxes
(4,927)
(2,243)Other non-current liabilities
2,424
(397)Net cash provided by operating activities
14,176
10,443Cash flows from investing activities

Capital expenditures
(7,786)
(7,125)Net cash used in investing activities
(7,786)
(7,125)Cash flows from financing activities

Payment of debt issuance costs
(571)
(66)Payment of deferred business acquisition consideration
(315)
—Repayment of debt obligations
(44,908)
—Proceeds from issuance of common stock in connection with at-the-market offering, net of issuance costs of $1,337
43,236
—Payment of withholding taxes for net share settlement of equity awards
(204)
(71)Options exercised
662
10Net cash used in financing activities
(2,100)
(127)Effect of exchange rate changes on cash and cash equivalents and restricted cash
(3,151)
(642)Net change in cash and cash equivalents and restricted cash
1,139
2,549Cash and cash equivalents and restricted cash, beginning of period
39,284
32,765Cash and cash equivalents and restricted cash, end of period
$            40,423
$            35,314 REVENUE BY SEGMENT(in thousands)(Unaudited)

Three months ended December 31,

2025
2024
% ChangeOn Device Solutions
$           99,556
$           91,736
9 %App Growth Platform
52,616
44,241
19 %Elimination
(773)
(1,340)
(42) %Consolidated
$         151,399
$         134,637
12 % GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT(in thousands)(Unaudited)

Three months ended December 31,

2025
2024
Net revenue
$      151,399
$      134,637
(Loss) income from operations
21,654
(12,753)
Add-back items:

Product development
9,892
10,203
Sales and marketing
14,326
15,494
General and administrative
28,897
42,792
Depreciation of software included in other direct costs of revenue
—
17
Contract settlement fees
—
3,800
Non-GAAP gross profit
$        74,769
$        59,553
Non-GAAP gross profit percentage
49 %
44 %

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET INCOME(in thousands)(Unaudited)

Three months ended December 31,

2025
2024
Net (loss) income
$          5,107
(23,131)
Add-back items:

Stock-based compensation expense
495
8,250
Amortization of intangibles
8,868
13,474
Change in fair value of contingent consideration
231
500
Tax adjustment (1)
4,547
7,685
Business transformation costs
—
667
Transaction-related expenses
—
207
Severance costs
37
2,220
Contract settlement fees
—
3,800
Amortization of debt discount and issuance costs
4,007
533
Unrealized loss on derivatives
(1,600)
—
Non-GAAP adjusted net income
$        21,692
$        14,205
Non-GAAP adjusted net income per common share
$            0.18
$            0.13
Weighted-average common shares outstanding, diluted
120,474
105,851

(1) Valuation allowance

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA(in thousands)(Unaudited)

Three months ended December 31,

2025
2024Net income/(loss)
$              5,107
$          (23,131)Add-back items:

Stock-based compensation expense
495
8,250Depreciation and amortization
16,565
19,613Interest expense, net
13,561
7,913Amortization of debt discount and issuance costs
4,007
533Other income (expense), net
(74)
57Change in fair value of contingent consideration
231
500Business transformation costs
—
667Foreign exchange transaction gain
(2,815)
(1,037)Income tax provision
3,237
2,412Transaction-related expenses
—
207Severance costs
37
2,220Contract settlement fees
—
3,800Unrealized loss on derivatives
(1,600)
—Non-GAAP adjusted EBITDA
$            38,751
$            22,004 GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW(in thousands)(Unaudited)

Three months ended December 31,

2025
2024Net cash provided by operating activities
$           14,176
$           10,443Capital expenditures
(7,786)
(7,125)Transaction-related expenses
—
207Severance costs
37
2,220Business transformation costs
—
667Non-GAAP free cash flow provided by operations
$            6,427
$            6,412

View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2026-third-quarter-financial-results-302678013.htmlSOURCE Digital Turbine, Inc.

Original: Digital Turbine Reports Fiscal 2026 Third Quarter Financial Results