Digital Turbine shares surge 19.91% after-hours on Q3 earnings beat and raised FY2026 revenue guidance.

Digital Turbine (NASDAQ: APPS) surged 19.91% in after-hours trading following the release of strong Q3 fiscal 2026 results and raised guidance. The company reported revenue of $151.4 million (exceeding estimates by $7.7 million) and non-GAAP adjusted net income of $21.7 million, with GAAP net income at $5.1 million. Management raised full-year 2026 revenue guidance to $553–$558 million, surpassing the $548.2 million consensus, citing continued business momentum. CEO Bill Stone highlighted "double-digit growth in both revenue and adjusted FAVÖK," while non-GAAP gross margin expanded to 49% from 44% year-over-year. Despite structural risks like high leverage and internal control weaknesses, the earnings beat and optimistic outlook drove immediate post-earnings optimism, with shares jumping to $5.18 after closing at $4.94.