Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Financial Data and Key Metrics Changes - Revenue for the quarter was $151.4 million, representing a 12% year-over-year growth [4][13] - Quarterly EBITDA reached $39 million, reflecting a 76% year-over-year growth with EBITDA margins of 26% [4][14] - Non-GAAP gross margin improved to 49%, up from 44% in the prior year [14][15] - GAAP net income was $5.1 million, or $0.03 per share, while non-GAAP net income was $21.7 million, or $0.18 per share [15] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated nearly $100 million in revenue, up approximately 9% year-over-year [7][13] - Application Growth Platform (AGP) revenue was $53 million, reflecting a 19% year-over-year growth [7][13] - International business drove over 60% year-over-year growth in ODS, with more than 30% of revenues from outside the U.S. [7][8] Market Data and Key Metrics Changes - Overall device growth was 20% year-over-year, driven by strong international volumes [8] - Revenue per device (RPD) increased significantly, particularly in international markets [9] - Retail vertical saw a 5x growth compared to the previous holiday season [9] Company Strategy and Development Direction - Five strategic priorities include unlocking first-party data value, building a flywheel effect between supply and demand, scaling the brand business, expanding Ignite platform services, and exploring alternative app opportunities [10][11][12] - The company aims to leverage AI and machine learning to enhance operational efficiency and revenue generation [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and the ability to continue delivering value [12][18] - The company raised its full-year revenue guidance to a range of $553 million to $558 million and Adjusted EBITDA guidance to $114 million to $117 million for fiscal 2026 [17] Other Important Information - The company ended the quarter with a cash balance of $40 million and reduced total debt by over $41 million to $355 million [16] - The decision was made to terminate the existing at-the-market equity program due to improved balance sheet strength [16] Q&A Session Summary Question: Insights on app install business and advertising integration - Management highlighted the potential for integrating advertising budgets into user acquisition, creating a self-reinforcing growth cycle [19][20] Question: Impact of Google Gemini announcement - Management views the announcement positively, as it may increase demand for distribution services without directly competing in the gaming space [22][23] Question: Use of SingleTap by global gaming companies - Management confirmed that three major gaming companies are already using SingleTap for alternative application distribution, enhancing user acquisition efficiency [25][26] Question: Competitive landscape changes due to Meta's activity on iOS - Management noted that while the overall market grew mid- to high-single digits, their AGP segment outgrew the market at 20%, indicating market share gains [30]

Financial Data and Key Metrics Changes - Total revenue for the fiscal third quarter was $151.4 million, representing a 12% year-over-year growth [4][13] - Adjusted EBITDA for the quarter totaled $38.8 million, reflecting a 76% increase year-over-year, with an EBITDA margin of 26% [14] - GAAP net income was reported at $5.1 million, or $0.03 per share, while non-GAAP net income was $21.7 million, or $0.18 per share [15] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated $99.6 million in revenue, up 9% year-over-year, driven by higher device volumes and revenue per device (RPD) [13][14] - Application Growth Platform (AGP) revenue was $52.6 million, up 19% from the prior year, with strong results in brand business and over 30% growth in DTX or SSP business [7][14] Market Data and Key Metrics Changes - International business drove over 60% year-over-year growth in ODS, with more than 30% of revenues from outside the United States for the first time [7][8] - Overall device volumes grew 20% year-over-year, despite softness in U.S. devices, indicating strong performance from international partners [8] Company Strategy and Development Direction - The company has five strategic priorities aimed at unlocking value from first-party data, building a flywheel effect between supply and demand, scaling the brand business, expanding services through the Ignite platform, and exploring alternative app opportunities [10][11][12] - The company is focused on leveraging AI and machine learning to enhance operational efficiency and drive revenue growth [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and the ability to build on performance, with a raised full-year revenue guidance to $553 million-$558 million and adjusted EBITDA guidance to $114 million-$117 million for fiscal year 2026 [17][18] - The company views the recent Google Gemini announcement positively, as it is expected to increase demand for distribution services [23][24] Other Important Information - The company ended the quarter with a cash balance of $40 million and reduced total debt by over $41 million to $355 million [16] - Free cash flow for the third quarter totaled $6.4 million, reflecting improved cash generation [14] Q&A Session Summary Question: Insights on the app install business and advertising integration - Management highlighted the potential for integrating advertising budgets into user acquisition, creating a self-reinforcing growth cycle [19][20] Question: Impact of Google Gemini announcement - Management believes the announcement will positively affect the company by increasing the need for distribution services for new games [22][24] Question: Observations on Meta's activity on iOS - Management noted that while Meta's activity is increasing, the company is outgrowing the market, with AGP growth at 20% compared to the market's mid- to high-single digits [30]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 was $151.4 million, representing a 12% year-over-year growth [4][12] - Adjusted EBITDA for the quarter totaled $38.8 million, reflecting a 76% increase year-over-year, with an EBITDA margin of 26% [13][14] - GAAP net income was $5.1 million, or $0.03 per share, while non-GAAP net income was $21.7 million, or $0.18 per share [14] - Free cash flow for the quarter was $6.4 million, and cash operating expenses decreased by 4% year-over-year [13][14] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated $99.6 million in revenue, up 9% year-over-year, driven by higher device volumes and revenue per device (RPD) [12][6] - Application Growth Platform (AGP) revenue was $52.6 million, up 19% from the prior year, with strong performance in brand business and over 30% growth in DTX or SSP business [12][6] Market Data and Key Metrics Changes - International business drove over 60% year-over-year growth in ODS, with more than 30% of revenues from outside the U.S. for the first time [6][4] - Overall device growth was 20% year-over-year, with improved supply and demand trends contributing to performance [7][6] Company Strategy and Development Direction - The company has five strategic priorities: unlocking first-party data value, building a flywheel effect between supply and demand, scaling the brand business, expanding services through the Ignite platform, and pursuing alternative app opportunities [9][10] - The company aims to leverage its assets to capture a $0.5 trillion market opportunity [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and the ability to continue delivering value to partners, advertisers, users, and shareholders [11][16] - The company raised its full-year revenue guidance to $553 million-$558 million and Adjusted EBITDA guidance to $114 million-$117 million for fiscal 2026 [16] Other Important Information - The company ended the quarter with a cash balance of $40 million and reduced total debt by over $41 million to $355 million [15][14] - The company terminated its at-the-market equity program due to improved liquidity and balance sheet strength [15] Q&A Session Summary Question: Insights on app install business and advertising integration - Management highlighted the potential for integrating advertising budgets into user acquisition, creating a self-reinforcing growth cycle [18][20] Question: Impact of Google Gemini announcement - Management viewed the announcement positively, as it could increase the demand for distribution services, benefiting the company [21][23] Question: Use of SingleTap by global gaming companies - Management confirmed that three major gaming companies are already using SingleTap for distributing applications and reducing friction in user acquisition [24][25] Question: Competitive landscape changes due to Meta's activity on iOS - Management noted that while the overall market grew mid- to high-single digits, the company's AGP growth was 20%, indicating market share gains [29]

Digital Turbine, Inc. (NASDAQ:APPS) shares rallied in Tuesday's extended trading after the company released its third-quarter earnings report. Here's a look at the key figures from the quarter. APPS stock is soaring. Watch the price action here.The Details: Digital Turbine reported quarterly earnings of 18 cents per share, which beat the analyst consensus of 12 cents by 56.52%, according to Benzinga Pro.Quarterly revenue of $151.4 million beat the Street estimate of $145.73 million. Non-GAAP adjusted EBITDA ...

Financing and Debt Management - Digital Turbine refinanced its existing senior credit facility with a new Financing Agreement totaling $430 million, secured by substantially all assets[136][137]. - The Financing Agreement requires maintaining a minimum liquidity of $10 million until March 31, 2026, and $20 million thereafter[141]. - The company made principal payments of $44.91 million and $55 million on the Loans during the three and nine months ended December 31, 2025, respectively[138]. - The Loans accrue interest at a term SOFR rate or a reference rate, with margins ranging from 6.50% to 8.00%[139]. - As of December 31, 2025, the outstanding secured indebtedness under the Financing Agreement is $375 million, with a maturity date of August 29, 2029[204]. - A hypothetical increase in market interest rates of 100 basis points would result in an increase in interest expense of $10 per year for every $1,000 of outstanding debt under the Financing Agreement[221]. - The company is subject to risks related to refinancing its debt and may face adverse effects if unable to meet its debt service obligations[209]. Revenue Performance - Net revenue for the three months ended December 31, 2025, was $151,399, an increase of 12.4% compared to $134,637 for the same period in 2024[155]. - For the nine months ended December 31, 2025, net revenue reached $422,702, reflecting a 13.8% increase from $371,354 in 2024[155]. - On Device Solutions revenue increased by 8.5% to $99,556 for the three months ended December 31, 2025, and by 14.4% to $291,468 for the nine months ended December 31, 2025[156][159]. - App Growth Platform revenue rose by 18.9% to $52,616 for the three months ended December 31, 2025, and by 11.3% to $133,593 for the nine months ended December 31, 2025[160][161]. - Revenue share decreased by 7.9% to $64,425 for the three months ended December 31, 2025, and increased by 2.0% to $185,656 for the nine months ended December 31, 2025[169][170]. Cost Management - Total costs of revenue and operating expenses decreased by 12.0% to $129,745 for the three months ended December 31, 2025, and by 3.5% to $399,175 for the nine months ended December 31, 2025[164]. - General and administrative expenses decreased by 32.5% to $28,897 for the three months ended December 31, 2025, and by 17.6% to $105,889 for the nine months ended December 31, 2025[162]. - Product development expenses decreased by $311 or 3.0% to $9,892 for the three months ended December 31, 2025, compared to $10,203 for the same period in 2024[177]. - Sales and marketing expenses decreased by $1,168 or 7.5% to $14,326 for the three months ended December 31, 2025, and represented 9.5% of total net revenue compared to 11.5% for the same period in 2024[183]. - General and administrative expenses, after excluding severance and business transformation costs, decreased by $19,639 for the nine months ended December 31, 2025, compared to the same period in 2024[192]. Business Transformation - Business transformation costs incurred during the nine months ended December 31, 2025, amounted to $31, compared to $1.31 million in the same period of 2024[152]. - The company anticipates ongoing costs related to the business transformation project through early fiscal year 2026[152]. - The transformation program is expected to yield over $25,000 in annual cash expense savings[153]. - The company incurred $2,886 in expenses related to the transformation program during the fiscal year ended March 31, 2025[153]. - The company completed the first deployment phase of its new global cloud-based ERP system in the third quarter of fiscal year 2024[152]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended December 31, 2025, was $37,424 thousand, a significant increase of 9,960.2% compared to $372 thousand for the same period in 2024[212]. - Net cash used in investing activities for the nine months ended December 31, 2025, was $23,172 thousand, an increase of 12.9% from $20,533 thousand in 2024[212]. - Proceeds from borrowings, net of original issue discount, amounted to $418,700 thousand for the nine months ended December 31, 2025, compared to $38,000 thousand in 2024, reflecting a 1,001.8% increase[212]. - The company reported a net cash used in financing activities of $10,332 thousand for the nine months ended December 31, 2025, compared to net cash provided of $23,245 thousand in 2024, indicating a significant change in financing activities[216][217]. Economic and Market Conditions - The company is actively monitoring macroeconomic conditions and geopolitical developments that could impact its business, including inflation and trade disputes[126][133]. - The company is exploring options to raise additional capital through equity securities or debt financing arrangements, which may dilute existing stockholders' ownership[208]. - The company has minimum purchase commitments under hosting agreements totaling approximately $201,925 thousand over the next five fiscal years[211]. - As of December 31, 2025, the company was in compliance with all covenants under the Financing Agreement[207]. Financial Results - The company incurred a net income of $5,107 and a net loss of $30,392 for the three and nine months ended December 31, 2025, respectively[200]. - Interest expense, net, increased by $5,648 or 71.4% for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to increased interest rates[194]. - The company recorded foreign exchange transaction gains of $2,815 and $3,037 for the three and nine months ended December 31, 2025, respectively, compared to losses in the same periods of 2024[198].

Digital Turbine Reports Fiscal 2026 Third Quarter Financial Results 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 Income of $21.7 Million and Non-GAAP Adjusted EPS of $0.18 1 1 Third Quarter Non-GAAP Adjusted EBITDA Totaled $38.8 Million, Representing Year-over-Year Growth of 76% 2 Austin, TX – February 3, 2026 – Digital Turbine, Inc. (Nasdaq: APPS) announced fin ...

Core Insights - Digital Turbine, Inc. reported a total revenue of $151.4 million for the third quarter of fiscal 2026, reflecting a year-over-year growth of 12% compared to $134.6 million in the same quarter of fiscal 2025 [4][8] - The company achieved a GAAP net income of $5.1 million, or $0.03 per share, a significant improvement from a GAAP net loss of $23.1 million, or ($0.22) per share, in the third quarter of fiscal 2025 [5][8] - Non-GAAP adjusted net income for the third quarter was $21.7 million, or $0.18 per share, compared to $14.2 million, or $0.13 per share, in the prior year [5][8] - Non-GAAP adjusted EBITDA reached $38.8 million, representing a substantial year-over-year growth of 76% from $22.0 million in the third quarter of fiscal 2025 [6][8] Financial Performance - Total revenue for the third quarter of fiscal 2026 was $151.4 million, with On Device Solutions revenue at $99.6 million and App Growth Platform revenue at $52.6 million [4][8] - The company reported a non-GAAP free cash flow of $6.4 million for the third quarter of fiscal 2026 [8] - The increase in revenue was attributed to strong demand and effective execution by the team, as stated by the CEO [3] Business Outlook - The company is raising its expectations for fiscal year 2026, indicating a positive outlook based on the current business momentum and market opportunities [9] - The CEO emphasized the expanding market opportunity as mobile app publishers and advertisers seek new ways to promote app usage and profitability [3]

Industry Overview - The Internet Software industry is expected to show evolving enterprise software adoption patterns, resilience in subscription models, and ongoing platform consolidation trends in Q4 2025 [1] - There is selective demand for specialized software solutions, continued preference for cloud-based deployments, and cautious IT spending optimization [1] Company Performance Insights - Leading players like 8x8, Intapp, Match Group, and Digital Turbine are anticipated to benefit from subscription renewals and vertical-specific solution demand, with SaaS spending maintaining growth momentum due to cloud adoption and digital transformation initiatives [2] - AI-enhanced workflow automation and analytics capabilities are driving operational efficiency and productivity gains, with generative AI integration gaining traction [3] Market Challenges - The industry's performance may be affected by macroeconomic headwinds and changing spending priorities, with enterprises focusing on software consolidation and strategic portfolio management [4] - Mixed revenue growth is expected for the Internet Software industry in Q4 2025, with companies demonstrating strong customer retention and differentiated solutions likely performing better [4] Company-Specific Developments - Match Group is expected to have momentum from product innovations at Tinder and Hinge, with new features enhancing user engagement and international expansion supporting subscriber growth [6] - However, user experience testing at Tinder may have created near-term revenue headwinds, alongside weaker trends at Evergreen and Emerging brands [7] - 8x8 is anticipated to benefit from usage-based revenue offerings and strong adoption of CPaaS communication APIs, although a shift toward lower-margin revenues may pressure gross margins [10][11] - Intapp is expected to leverage its cloud migration and AI integration initiatives, with a focus on vertical AI strategies driving customer engagement [13] - Digital Turbine is likely to see growth from its On Device Solutions and App Growth Platform segments, although macroeconomic uncertainties may pose challenges [16][17]

Core Insights - Digital Turbine (APPS) is expected to report its third-quarter fiscal 2026 results on February 3, 2026, with earnings projected at 16 cents per share, reflecting a 23.08% increase year-over-year [1][8] Group 1: Performance Drivers - The On Device Solutions (ODS) segment is anticipated to have positively impacted fiscal Q3 performance, with ODS revenues increasing by 17% year-over-year in Q2, and international ODS revenues soaring by 80%, contributing over 25% to total ODS revenues for the first time [2][8] - The Application Growth Platform (AGP) segment returned to year-over-year growth in Q2, with a 20% revenue increase attributed to the integration of older tech stacks, enhancing operational efficiency and advertiser demand [3] - Investments in AI and first-party data capabilities, including the DTiQ machine learning platform and Ignite Graph, are expected to have driven growth by enabling smarter targeting and improved user experiences for advertisers [4] Group 2: Challenges - The company is facing challenging macroeconomic uncertainties and stiff competition, which are likely to have negatively affected its performance in the upcoming quarter [5] Group 3: Earnings Expectations - According to the Zacks model, Digital Turbine currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable [6]