Core Insights - Digital Turbine's App Growth Platform (AGP) operates a programmatic marketplace for ad inventory, charging demand-side platforms (DSPs) and sharing revenues with publishers [1] Group 1: Business Performance - Digital Turbine's AGP business is experiencing strong growth, with a 30% year-over-year increase in supply volumes in fiscal Q2 2026 [2] - The AGP segment generated $44.7 million in revenues, reflecting a 20% year-over-year growth [4] - The company is enhancing its AGP platform by integrating AI and machine learning to improve ad targeting and return on ad spend [3][4] Group 2: Competitive Landscape - Digital Turbine does not face significant competition in its AGP business, as many industry players are customers on the DSP side [5] - However, broader competition exists from companies like AppLovin and Unity Software, which operate in mobile ad-network and app monetization [6][7] Group 3: Valuation and Estimates - Digital Turbine's shares have increased by 245.8% over the past year, significantly outperforming the Zacks Internet – Software industry's growth of 1.1% [8] - The company trades at a forward price-to-book ratio of 3.72X, which is lower than the industry average of 5.82X [10] - The Zacks Consensus Estimate for fiscal 2026 earnings indicates a year-over-year decline of 5.7%, with recent downward revisions [11]

Core Insights - Digital Turbine's On Device Solutions (ODS) simplify mobile app and content discovery through partnerships with carriers and OEMs, benefiting users, carriers, device manufacturers, and app publishers [2] - The ODS business has seen significant growth, with international revenues increasing by 80% year-over-year in Q2 of fiscal 2026, now representing over 25% of total ODS revenues [3] - Strong advertiser demand has resulted in over 30% year-over-year growth in revenue per device for the ODS business, supported by improved pricing and fill rates [4] ODS Business Performance - The ODS segment is experiencing rapid growth due to app delivery and content media, with a diversified revenue stream as no single partner contributes more than 10% of net revenues [5][9] - The increase in smartphone shipments with Digital Turbine's technology has further bolstered the ODS business [5] Competitive Landscape - Competitors like AppLovin and Unity Software operate in the mobile ad-network and app monetization space, adding to the competitive environment for Digital Turbine [6][7] - The market is becoming increasingly fragmented with regional players and OEM-led alternatives [7] Financial Performance and Valuation - Digital Turbine's shares have decreased by 227.4% over the past year, contrasting with the 1.3% growth of the Zacks Internet – Software industry [8] - The company trades at a forward price-to-book ratio of 3.62X, which is lower than the industry average of 5.81X [10] - The Zacks Consensus Estimate for fiscal 2026 earnings indicates a year-over-year decline of 5.7%, with recent downward revisions [11]

Core Insights - Digital Turbine (APPS) shares have increased by 221.9% over the past year, significantly outperforming the Zacks Internet – Software industry's growth of 0.9% [1] - The stock has also outperformed peers such as Unity Software (U) and AppLovin (APP), which returned 76.4% and 70.1% respectively [2] Business Performance - Digital Turbine's On Device Solutions (ODS) are central to simplifying app discovery and delivery through partnerships with carriers and OEMs, including Application Media and Content Media [5] - The ODS business has seen an 80% year-over-year growth in the second quarter of fiscal 2026, now accounting for over 25% of ODS revenues [6] - Revenue per device in the ODS business has grown by more than 30% year-over-year, driven by strong advertiser demand and global user growth [7] Financial Outlook - Digital Turbine projects fiscal 2026 revenues between $540 million and $550 million, with adjusted EBITDA expected to be between $100 million and $105 million [15] - The Zacks Consensus Estimate for APPS' third-quarter fiscal 2026 earnings is 16 cents per share, indicating a year-over-year growth of 23% [15] Strategic Partnerships - Digital Turbine has established strong partnerships with major companies like Xiaomi, Samsung, HMD, Nokia, and Motorola, enhancing its market position [13] - The addition of TIM (TIMB) as a partner in 2025 will further improve the smartphone experience through personalized app recommendations [14] Investment Recommendation - Given the growth in ODS and AGP, rising advertiser demand, strong international expansion, and diversified partnerships, Digital Turbine is considered an attractive investment opportunity [17]

Core Insights - The article presents a perspective on stock investments, emphasizing the author's unique insights and knowledge in the field [1] Group 1 - The analyst holds long positions in shares of major tech companies such as Google (GOOG), Meta (META), and Amazon (AMZN) through various financial instruments [2] - The analysis aims to provide contrasting views on the portfolio, suggesting a diverse approach to investment [1] - The article is intended for informational purposes and encourages readers to conduct their own research before making investment decisions [3]

Core Insights - Digital Turbine, Inc. will participate in three investor conferences in New York City on November 18 and 19, 2025 [1][4] Company Overview - Digital Turbine empowers mobile consumer experiences and results for telcos, advertisers, and publishers through its end-to-end platform [1] - The company is headquartered in North America and has offices globally [1] Upcoming Events - The company will host one-on-one and small group investor meetings at the 16th Annual Craig-Hallum Alpha Select Conference on November 18, 2025 [4] - CEO Bill Stone will participate in a fireside chat at the RBC Capital Markets Global Technology, Internet, Media & Telecommunications Conference on November 18, 2025, at 3:20 PM ET [4] - The company will also host one-on-one and small group investor meetings at the 14th Annual ROTH Technology Conference on November 19, 2025 [4]

Core Insights - Narweena is an asset manager that focuses on identifying market dislocations due to poor understanding of long-term business prospects [1] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [1] - Narweena's investment strategy emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] Investment Strategy - The coverage is tilted towards smaller cap stocks and markets where competitive advantages are not immediately apparent [1] - The firm believes that an aging population, low population growth, and stagnating productivity will create new investment opportunities distinct from historical trends [1] - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] Market Dynamics - Some businesses are expected to face rising costs and diseconomies of scale, while economies are increasingly dominated by asset-light businesses [1] - The declining need for infrastructure investments is leading to a situation where a large pool of capital is pursuing a limited set of investment opportunities [1] - This dynamic is driving up asset prices and compressing risk premia over time [1] Leadership Background - Richard Durant, the leader of Narweena, holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University [1] - He has passed the CFA exams, indicating a strong foundation in finance and investment analysis [1]

Core Viewpoint - The NASDAQ is experiencing a resurgence, particularly in small-cap tech, presenting opportunities to identify stocks with strong earnings trends that are currently undervalued [1] Company Overview - Digital Turbine (APPS) is highlighted as a Zacks Rank 1 (Strong Buy) stock, positioned at the intersection of mobile advertising, app delivery, and content monetization [2] - The company's software is pre-installed on smartphones, enabling carriers and manufacturers to deliver apps and ads seamlessly to users [2] Earnings Trends - Analysts have revised next year's earnings estimates upward, increasing the Zacks Consensus Estimate from 73 cents to 85 cents, indicating a projected earnings growth of 157% year-over-year [3] - Despite a current year earnings contraction of 5.7%, the positive revisions signal a turnaround for the company [3] Market Position - Digital Turbine's turnaround is evident in its Price, Consensus & EPS Surprise chart, with estimates trending higher since Q2 and six consecutive quarterly earnings beats fostering analyst optimism [4] - The stock trades at a forward P/E of around 18x, significantly below the software industry's average of 28x and the broader market's 24x earnings [4] Technical Analysis - The stock shows a strong positive trend with a 200-day moving average positively sloped, currently trading near $6 after a pullback from over $8 [5] - A retest of the 50-day moving average occurred recently, indicating a potential buying opportunity at this key technical level [5]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SMX (Security Matters) Public Limited Company (SMX) increased by 52% to $2.24 [3] - Entravision Communications Corporation (EVC) rose by 33% to $2.66 [3] - Babcock & Wilcox Enterprises, Inc. (BW) saw a 28% increase to $4.79 [3] - NeuroPace, Inc. (NPCE) gained 24% reaching $11.71 [3] - Kennedy-Wilson Holdings, Inc. (KW) also increased by 24% to $9.30 [3] - Rigel Pharmaceuticals, Inc. (RIGL) rose by 22% to $34.72 [3] - Digital Turbine, Inc. (APPS) increased by 21% to $7.20 [3] - Lumentum Holdings Inc. (LITE) saw a 15% increase to $218.06 [3] - AsiaStrategy (SORA) rose by 14% to $3.63 [3] - Marine Petroleum Trust (MARPS) increased by 7% to $5.05 [3] Premarket Losers - Biohaven Ltd. (BHVN) decreased by 42% to $7.96 [4] - Trex Company, Inc. (TREX) fell by 34% to $30.65 [4] - Soleno Therapeutics, Inc. (SLNO) saw a 23% decline to $49.00 [4] - Axon Enterprise, Inc. (AXON) decreased by 19% to $572.00 [4] - Clover Health Investments, Corp. (CLOV) fell by 19% to $2.82 [4] - Pinterest, Inc. (PINS) decreased by 18% to $26.91 [4] - SSR Mining Inc. (SSRM) saw a 17% decline to $17.91 [4] - Upstart Holdings, Inc. (UPST) decreased by 16% to $38.81 [4] - WF International Limited (WXM) fell by 12% to $2.25 [4] - Corsair Gaming, Inc. (CRSR) decreased by 11% to $6.66 [4]

Financial Data and Key Metrics Changes - Revenue for the quarter was $140.4 million, representing an 18% year-over-year growth [4][12] - Adjusted EBITDA grew by 78% year-over-year, reaching $27.2 million, with an EBITDA margin of 19.4% [4][13] - Free cash flow improved to $7 million, an increase of nearly $23 million year-over-year [13] - GAAP net loss was $21.4 million, or $0.20 per share, while non-GAAP net income was $16.5 million, or $0.15 per share [15] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated $96 million in revenue, up approximately 17% year-over-year, with international ODS revenue growing over 80% year-over-year [5][12] - App Growth Platform (AGP) revenue was $45 million, reflecting a 20% year-over-year increase [5][12] - Revenue per device in the ODS business saw over 30% year-over-year growth in both the US and international markets [6] Market Data and Key Metrics Changes - International revenues exceeded 25% of total ODS revenues for the first time in company history [5] - The company experienced a 40% sequential improvement in its brand business and a double-digit increase in its DTX or SSP business [6] Company Strategy and Development Direction - The company is focused on leveraging first-party data and AI-driven capabilities to enhance operational efficiency and drive growth [8][12] - Investments in AI, branded as DTIQ, are aimed at improving advertising outcomes and return on ad spend for clients [26][31] - The company is positioning itself to capitalize on the growing trend of alternative app distribution models [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain profitable growth, citing strong momentum across core businesses [11][16] - The company raised its full-year revenue guidance to a range of $540-$550 million and adjusted EBITDA guidance to $100-$105 million for fiscal year 2026 [16] Other Important Information - The company completed a successful debt refinancing with a new four-year term loan facility, enhancing liquidity for growth initiatives [5][15] - The Ignite Graph and DTIQ are seen as major growth drivers for the future, with over 1,000 unique data signals being utilized [9][30] Q&A Session Summary Question: Insights on brand business and ROI - Management highlighted the integration of platforms leading to improved results and noted that direct brand relationships accounted for 47% of total brand revenue in the September quarter [18][20] Question: International market penetration and RPD revenue - Management reported solid double-digit growth in international RPDs and emphasized the significance of international revenue exceeding 25% of ODS revenues [23] Question: Role of AI in operations and advertising - AI is a critical part of the company's strategy, with significant investments in DTIQ aimed at improving operational efficiency and advertising outcomes [25][26] Question: Impact of recent Supreme Court ruling on alternative app storefront - Management expressed excitement about the democratization of app distribution and the potential for growth in this area [27][28] Question: Competitive landscape changes - Management noted reduced competition in the device side of the business due to a major player exiting the market, while the AGP side remains competitive but focused on building demand-supply connections [32][34]

Market Overview - U.S. equities faced a significant downturn on November 4, 2025, with all three major indexes closing in the red, particularly the tech-heavy Nasdaq Composite, which led the declines [1][2] - The S&P 500 fell 1.2% to 6,771 points, while the Dow Jones Industrial Average decreased by 0.5% or approximately 238 points to 47,085, and the Nasdaq Composite dropped 2% to 23,348 [2] - The Cboe Volatility Index (VIX) surged 10% to 18.9, indicating increased investor apprehension amid concerns over valuations and a potential market correction [2] Economic Data and Events - The ongoing U.S. government shutdown is delaying key economic data releases, increasing focus on private sector data [3] - The ADP employment report is anticipated, which may provide insights into hiring trends following a dip in September [3] - The ISM Manufacturing PMI declined to 48.7 in October from 49.1 in September, marking the eighth consecutive month of contraction [4] Corporate Developments - Palantir Technologies (PLTR) saw a significant decline of 7.9% despite surpassing analysts' forecasts for sales and profit, raising concerns over high valuations [5] - Nvidia (NVDA) fell 4%, and Microsoft (MSFT) dipped 1%, reflecting growing concerns about the sustainability of the AI rally [5] - Uber Technologies (UBER) slumped 6.3% despite reporting better-than-expected financial results [5] - Yum! Brands (YUM) rose 6.1% after announcing strong quarterly results and considering selling its Pizza Hut unit [5] - Kinross Gold Corporation (KGC) reported robust third-quarter results, including record free cash flow and an increase in share buyback target and dividend [6] Earnings Announcements - Advanced Micro Devices, Inc. (AMD) is expected to report a 27.63% year-over-year increase in earnings per share [10] - Arista Networks, Inc. (ANET) is forecasted to see a 14.04% increase in earnings per share [10] - Axon Enterprise, Inc. (AXON) plunged 20% in after-hours trading following a Q3 earnings miss [10] - Digital Turbine (APPS) surged 22% in after-hours trading after reporting its FY 2026 Q2 earnings [10]