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- **Revenue Acceleration**: Q2 2026 revenue up 18% YoY to $140.4 million, with 80% YoY growth in international ODS and 20% YoY growth in AGP.
- **Profit Expansion**: Adjusted EBITDA surges 78% YoY to $27.2 million; Non-GAAP gross margin improves to 47%.
- **AI Growth Driver**: DTiQ AI platform enables 30% YoY RPD growth, direct brands now 47% of AGP revenue.
- **Balance Sheet Strength**: $396 million debt refinancing supports growth; free cash flow up $23 million YoY.
- **Updated Guidance**: Full-year 2026 revenue raised to $540-550 million (+12.5% YoY), EBITDA to $100-105 million (+33% YoY).

**【CEO Summary Section】**
- **Revenue Growth**: Q2 2026 revenue of $140.4 million, up 18% YoY, driven by 17% growth in On Device Solutions (ODS) and 20% growth in App Growth Platform (AGP). International ODS revenue surged 80% YoY, accounting for 25% of total ODS revenue.
- **Profitability**: Adjusted EBITDA of $27.2 million, up 78% YoY, with EBITDA margin expanding to 19.4%. Non-GAAP gross margin improved 200bps to 47%.
- **AI & Data Strategy**: Investment in DTiQ (AI/ML platform) and Ignite Graph driving 30% YoY growth in revenue per device (RPD) in both U.S. and international markets. Direct brand revenue rose to 47% of total brand revenue, up from 22% QoQ.
- **Debt Refinancing**: Completed 4-year $396 million term loan, enhancing liquidity for growth initiatives.

**【CFO Financial Commentary】**
- **GAAP Results**: Net loss of $21.4 million ($0.20 EPS), but Non-GAAP net income of $16.5 million ($0.15 EPS) beat expectations. Free cash flow improved $23 million YoY to $7 million.
- **Guidance Update**: Full-year 2026 revenue raised to $540-550 million (midpoint +12.5% YoY), EBITDA to $100-105 million (+33% YoY).
- **Cost Efficiency**: Operating expenses flat YoY at $38.9 million, despite 18% revenue growth.

**【Q&A Highlights】**
- **Brand ROI**: Direct brands now 47% of AGP revenue, up from 22% QoQ, driven by in-house media buying trends. SingleTap installs grew 45% QoQ.
- **AI Impact**: DTiQ leveraging 1,000+ unique signals from 2-3 billion devices to improve ad targeting. AI investments to support 2026+ growth.
- **Regulatory Shifts**: Supreme Court ruling on Google Play supports alternative app distribution. Digital Turbine's SDK footprint enables direct app distribution for publishers.
- **Competitive Landscape**: Reduced competition in ODS as major player exited; AGP focused on demand/supply flywheel rather than direct competition.

Digital Turbine, Inc. (APPS) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

APPS

APPS fundamentals

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