Stock Analysis · Digital Turbine Inc (APPS)
Overview
Digital Turbine is a mobile advertising and app distribution company. Its software is built into the mobile ecosystem and is used by wireless carriers, device makers, app developers, publishers, and advertisers. In simple terms, the company helps apps get discovered, installed, and monetized on smartphones, and it also helps advertisers place ads across mobile devices.
The business has changed over time through acquisitions, and today it is centered on an advertising technology platform rather than a single app-install product. Digital Turbine operates globally, but its business is still closely tied to Android distribution channels, mobile operators, handset makers, and the health of the digital advertising market.
Based on recent company reporting, the main revenue sources are approximately the following:
- On Device Solutions: about 48% of revenue. This includes software and services placed on devices through carriers and original equipment manufacturers, such as app discovery, recommendations, and preloaded or dynamically delivered app experiences.
- App Growth Platform: about 32% of revenue. This business helps advertisers acquire users and optimize app install campaigns.
- Ad Monetization Platform: about 20% of revenue. This includes mobile ad exchange, mediation, and monetization tools used by publishers and advertisers.
The revenue mix matters because it shows that Digital Turbine is no longer just a niche app-install company. It now has exposure to several parts of the mobile advertising chain, which can create cross-selling opportunities, but it also adds execution complexity.
Revenue and profit flow have been uneven in recent years. Sales fell materially from fiscal 2022 through fiscal 2025 before recovering in fiscal 2026, while gross profit held up better than revenue. Operating expenses have come down, especially selling and administrative costs, which suggests restructuring efforts are real. Even so, interest expense has risen sharply, and net income remains negative.
Key Figures
| Metric | Value | Sector ⓘ |
|---|---|---|
| Date | Sep 12, 2026 | |
| Context | ||
| Sector | Technology | |
| Industry | Software - Application | |
| Market Cap ⓘ | $1.43B | |
| Beta ⓘ | 2.88 | |
Value (Cheapness) | ||
| P/E Ratio ⓘ | N/A | 29.51 |
| FCF Yield ⓘ | 1.48% | 4.25% |
| EBIT / EV ⓘ | 0.87% | 2.85% |
| PEG ⓘ | 0.69 | |
Growth (Business expansion) | ||
| Revenue Growth ⓘ | 26.80% | 15.40% |
| RPS Growth (5Y CAGR) ⓘ | -8.95% | 8.56% |
| EPS Growth (5Y CAGR) ⓘ | -44.47% | -11.88% |
| Margin Growth (5Y Trend) ⓘ | N/A | 0.46% |
| FCF Growth (5Y CAGR) ⓘ | -40.54% | 9.80% |
Quality (Business durability) | ||
| ROIC (Latest) ⓘ | 1.26% | 9.44% |
| ROIC (5Y Median) ⓘ | -3.66% | 8.30% |
| Net Debt / EBIT (Latest) ⓘ | 21.46 | 0.54 |
| Net Debt / EBIT (5Y Median) ⓘ | N/A | 0.44 |
| Operating Margin (Latest) ⓘ | 2.40% | 9.58% |
| Operating Margin (5Y Median) ⓘ | -5.54% | 8.25% |
| Debt to Equity (Latest) ⓘ | 185.14% | 33.33% |
| Profit Margin (Latest) ⓘ | -5.82% | 7.14% |
| Free Cash Flow (Latest) ⓘ | $21.19M | |
Momentum (Price trend) | ||
| 3Y Return ⓘ | +65.17% | +45.48% |
| 12M Return (excl. last month) ⓘ | +189.95% | +23.48% |
| 6M Return ⓘ | +221.80% | +20.93% |
| Price vs. 200-Day MA ⓘ | +80.58% | +7.43% |
Digital Turbine is a mid-sized technology company with a very volatile stock. The share price is still far below its 2021 peak, even after a strong rebound over the last year. In the broader factor view, momentum is strong, but value, quality, and long-term growth metrics remain weak versus much of the software sector. That combination usually points to a recovery situation rather than a fully stabilized business.
Growth
Digital Turbine operates in a sector that still has long-term tailwinds. Mobile usage remains high, app discovery is crowded, and advertisers keep looking for better ways to reach users outside the largest closed ecosystems. That gives the company a relevant place in the market: it sits between carriers, OEMs, publishers, and advertisers, with technology that can help all of them monetize smartphone attention.
The strategy also has a reasonable industrial logic. By combining on-device app discovery with ad buying and ad monetization tools, Digital Turbine is trying to offer a broader platform instead of a single-point solution. If that works, it can improve customer retention and increase the amount of revenue generated from each partner relationship.
Recent growth has improved meaningfully. After a long stretch of year-over-year declines, revenue returned to positive growth and most recently has been running at roughly the high-20% range, clearly ahead of the sector median. That is one of the strongest arguments in the company’s favor today. It suggests the downturn in mobile advertising demand and company-specific disruptions may be easing.
Cash generation has also started to recover, though it is not yet consistently strong. Free cash flow turned negative during the downturn, then moved back into positive territory. That matters because a business with thin profits and meaningful debt needs real cash, not just accounting improvement.
A notable catalyst is the company’s work around alternative app distribution and improved app discovery outside the traditional app store path. Regulatory pressure on large platform gatekeepers in multiple regions could gradually create more room for companies that help developers and device partners distribute apps differently. Another potential growth driver is better monetization of its installed relationships with carriers and smartphone manufacturers, especially if the company can layer more advertising demand onto those channels.
Recent company communications have also emphasized product launches and AI-related enhancements aimed at ad targeting, campaign optimization, and user engagement. These initiatives do not change the economics overnight, but they fit the direction of the digital advertising industry, where better automation and measurement can improve yield.
Risks
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
