Digital Turbine's Q3 2025: A Tale of Resilience and Growth

Digital Turbine, Inc. (APPS) recently reported its fiscal third quarter 2025 earnings, showcasing a remarkable turnaround and growth story. Despite a challenging environment, the company managed to exceed expectations, driven by its strategic focus on On-Device product offerings and the App Growth Platform (AGP). Let's dive into the key highlights and the drivers behind Digital Turbine's impressive performance.



Digital Turbine's revenue for the fiscal third quarter of 2025 totaled $134.6 million, representing a 13% increase quarter-over-quarter and a 6% decline year-over-year. The company's GAAP net loss for the quarter was $23.1 million, or ($0.22) per share, compared to a GAAP net loss of $14.1 million, or ($0.14) per share, in the same period last year. However, Digital Turbine's non-GAAP adjusted net income for the quarter was $13.7 million, or $0.13 per share, compared to $15.6 million, or $0.15 per share, in the fiscal third quarter of 2024.

The company's non-GAAP adjusted EBITDA for the fiscal third quarter of 2025 was $22.0 million, representing a 44% increase quarter-over-quarter and a 13% decline year-over-year. Digital Turbine's non-GAAP free cash flow totaled $6.4 million in the fiscal third quarter of 2025.



Digital Turbine's strategic focus on On-Device product offerings and the AGP platform has been a significant contributor to its revenue growth and improved operating performance in Q3 2025. The company's On-Device international revenues were up 100% year-over-year, driven by strong advertiser demand and improved execution by the sales, product, tech, and operations teams. Additionally, the AGP business reported a 17% sequential growth in revenue, with a gross margin of $34 million, indicating a strong performance.



Digital Turbine's CEO, Bill Stone, attributed the company's improved performance to its transformation efforts, which have driven improved operating performance and free cash flow. The company is also raising its fiscal 2025 outlook, which implies year-over-year revenue growth in the March quarter with more material year-over-year growth in EBITDA.

In conclusion, Digital Turbine's Q3 2025 earnings report is a testament to the company's resilience and growth, driven by its strategic focus on On-Device product offerings and the AGP platform. Despite the challenges faced by the company, it has managed to exceed expectations and raise its outlook for the fiscal year. As an investor, it is essential to keep a close eye on Digital Turbine's progress and consider its growth potential in the long term.