Digital Turbine 2026 Q1 Earnings Strong Performance as Net Loss Narrows 43.9%

Digital Turbine (APPS) reported its fiscal 2026 Q1 earnings on Aug 06th, 2025. The company beat expectations with improved performance, including a 11.0% revenue increase and a 43.9% reduction in net loss. Digital Turbine also raised its full-year revenue and EBITDA guidance.

Digital Turbine’s total revenue for Q1 2026 grew 11.0% year-over-year to $130.93 million, with the On Device Solutions segment contributing the lion’s share at $95.45 million, reflecting robust demand for its Ignite platform. The App Growth Platform added $36.29 million, while $814,000 was eliminated to avoid double counting, resulting in total net revenue of $130.93 million.

The company significantly narrowed its net loss to $14.10 million, or $0.13 per share, in Q1 2026, compared to a $25.16 million loss, or $0.25 per share, in the prior year, marking a 43.9% improvement. This reduction in losses highlights the company’s progress in controlling costs and driving operational efficiency.

Despite the positive earnings, the stock price of Digital Turbine fell 5.72% during the latest trading day. However, it gained 5.63% over the past week, though it declined 9.78% month-to-date.

A post-earnings trading strategy of buying APPS when it missed revenue expectations showed no return, yielding 0.00% compared to an 85.42% benchmark. The strategy neither experienced a loss nor generated excess returns, with a maximum drawdown and Sharpe ratio both at 0.00%.

CEO Bill Stone emphasized the company's strong Q1 performance, noting double-digit revenue growth and a 73% increase in EBITDA. He highlighted the Ignite platform’s demand, improved device sales, and the company’s solid execution. Looking ahead, Stone pointed to the potential for leveraging first-party data for AI/ML advancements and ongoing investments in the global device ecosystem.

Digital Turbine raised its full-year 2026 revenue guidance to between $525 million and $535 million and expects non-GAAP adjusted EBITDA to range between $90 million and $95 million. The company, however, is unable to provide GAAP net income guidance due to unpredictable expenses such as stock-based compensation.

In additional news, Digital Turbine joined The Coalition for a Competitive Mobile Experience (CCME) on Aug. 5, 2025. This move aligns with the company’s mission to support a more open and competitive app ecosystem. By joining founding members like Garmin, Match Group, Meta, and Spotify, Digital Turbine brings its extensive expertise in app distribution and platform technology to the coalition. With over 82,000 apps on its Ignite platform, DT is positioned to advocate for app developers and promote alternative distribution methods to foster competition and innovation in the mobile app space. The CEO emphasized the company’s commitment to a level playing field, where developers, consumers, and partners have greater control and choice.