Digital Turbine (APPS) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenue reached $565.3 million, up 15% year-over-year, with adjusted EBITDA growing nearly 70% year-over-year, reflecting strong operating leverage, gross margin expansion, and improved balance sheet strength.

• Q4 net revenue was $142.5 million, up 20% year-over-year, with significant growth in both On-Device Solutions (ODS) and App Growth Platform (AGP) segments.

• Fiscal 2026 GAAP net loss was $37.7 million, a substantial improvement from a $92.1 million loss in fiscal 2025; non-GAAP net income was $64.9 million ($0.56 per share), up from $38.7 million.

• AI and automation have driven operational efficiencies, enabling revenue growth with a 4% reduction in headcount.

• The CFO is stepping down, with the Chief Accounting Officer assuming interim duties.

Financial highlights

• Q4 adjusted EBITDA was $31.4 million (up 53% year-over-year), with a margin of 22%; full-year adjusted EBITDA was $122.5 million, up 69%.

• Q4 non-GAAP net income was $19.7 million ($0.16 per share), up from $11.3 million ($0.10 per share) year-over-year.

• Full-year GAAP net loss was $37.3 million ($0.33 per share); non-GAAP net income was $64.9 million ($0.56 per share).

• Non-GAAP gross margin reached 50% in Q4, up from 48% a year ago; full-year non-GAAP gross profit margin was 49%, up from 46% in fiscal 2025.

• Free cash flow for the year was $11.8 million, an improvement of over $21 million from the prior year.

Outlook and guidance

• Fiscal 2027 revenue guidance is $630 million–$650 million; adjusted EBITDA guidance is $135 million–$145 million.

• Continued double-digit growth is expected, driven by AI, data, platform expansion, and brand business momentum.