How did APPS' Q3 2025 earnings surprise investors?

Digital Turbine Inc.'s (APPS) Q3 2025 earnings report surprised investors in several ways:

1. **Revenue Growth**: Despite a slight decline in revenue to $134.46 million, which was down from the previous quarter, the company showed strong sequential growth, with a 13% increase. This growth was particularly notable in its ODS Segment, which saw a 11% increase, and its AGP Business, which experienced a 17% sequential growth.
2. **Earnings Per Share (EPS)**: Digital Turbine significantly exceeded investor expectations with an EPS of $0.13, compared to the estimated EPS of $0.06. This represents a 117.0% beat on estimated earnings, indicating robust profitability for the period.
3. **Profitability Metrics**: The company's adjusted EBITDA stood at $22 million, and it reported a free cash flow of $6.4 million. These figures highlight the company's solid financial performance and its ability to generate cash.
4. **Segment Performance**: The ODS Segment revenue reached $91.7 million, reflecting a 11% increase from the previous quarter, while the AGP Business revenue was $43.8 million, up by 17% sequentially. This indicates strong performance across its key business segments.
5. **Market Outlook**: Digital Turbine provided an optimistic outlook for fiscal year 2025, projecting revenue between $485 million and $515 million. This guidance suggests confidence in continued growth and further solidified its position in the market.

Overall, Digital Turbine's Q3 2025 earnings report was a positive surprise, highlighting the company's strong revenue growth, robust profitability, and positive market outlook, which are likely to have boosted investor confidence in the company's future performance.