Shares of Digital Turbine (APPS) jumped in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at $0.10, which beat analysts’ consensus estimate of $0.04 per share.
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In addition, sales increased by 6% year-over-year, with revenue hitting $119.2 million. This also beat analysts’ expectations by $116.64 million. Revenue was mainly driven by the company’s On Device Solutions segment, which totaled $86.8 million, while the App Growth Platform contributed $33.3 million. This comes as the company has struggled to achieve any significant growth over the past 12 quarters, as demonstrated by the image below.
CEO Bill Stone said he was proud of the company’s improved performance over the past year. Indeed, he highlighted that EBITDA rose by 66% due to strong demand from advertisers and partners as well as margin improvements from the company’s transformation program. Stone also noted that progress was being made in leveraging AI and machine learning in order to improve the value of first-party data.
2026 Outlook
Looking forward, management has provided the following guidance for Fiscal Year 2026:
- Revenue between $515 million and $525 million versus estimates of $519.6 million.
- Adjusted EBITDA of between $85 million and $90 million compared to expectations of $85.2 million.
As you can see, guidance was better than expected, which is likely what contributed to the stock’s after-hours move.
Is APPS Stock a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a neutral outlook for APPS stock. Indeed, the summary section pictured below shows that nine indicators are Bullish, compared to six Neutral and seven Bearish indicators. However, this will likely change following today’s earnings report.
See more APPS technical analysis
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