Digital Turbine Reports Strong Fiscal 2027 Second Quarter Financial Results
Digital Turbine, Inc. (APPS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Digital Turbine Reports Strong Fiscal 2027 Second Quarter Financial Results Second Quarter Net Revenue Totaled $178.7 Million, Representing Year-over-Year Growth of 27% Second Quarter GAAP Net Income of $10.3 Million and diluted GAAP EPS of $0.06; Second Quarter Non-GAAP Adjusted
How this was made
The 30-second read
Why it matters
The filing provides new quarterly performance datapoints and an issued FY2027 revenue and non-GAAP adjusted EBITDA range, which can drive estimate revisions and near-term trading around the conference call.
Market read
APPS has a fresh earnings-and-guidance catalyst with explicit FY2027 ranges, making it actionable for traders adjusting forward expectations.
What to watch
The guidance is provided as ranges and GAAP net income outlook is not quantified due to stock-based compensation sensitivity, which can increase uncertainty around true earnings power.
Digital Turbine reports fiscal Q2 2027 revenue of $178.7 million, up 27% year over year, with non-GAAP adjusted EBITDA up 46% to $39.8 million; FY2027 guidance provided for revenue and adjusted EBITDA
Revenue grew 27% year over year, both reported segments grew (On Device Solutions 20%, App Growth Platform 42%), non-GAAP adjusted EBITDA grew 46%, and GAAP net income turned positive at $10.3 million versus a loss of $21.4 million a year earlier. The GAAP figure includes a $4.7 million gain on a disposition that the company excludes from non-GAAP results, and the filing discloses a $3.5 million revenue share understatement in a prior quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, Q2 FY2027 (three months ended Sept 30, 2026)GAAP | $178.7M | – | 27% |
| On Device Solutions net revenue before intercompany eliminations, Q2 FY2027other | $115.6M | – | 20% |
| App Growth Platform net revenue before intercompany eliminations, Q2 FY2027other | $63.46M | – | 42% |
| Revenue share expense, Q2 FY2027GAAP | $87.72M | – | – |
| Other direct costs of revenue, Q2 FY2027GAAP | $13.56M | – | – |
| Product development expense, Q2 FY2027GAAP | $9.95M | – | – |
| Sales and marketing expense, Q2 FY2027GAAP | $14.45M | – | – |
| General and administrative expense, Q2 FY2027GAAP | $32.69M | – | – |
| Total costs of revenue and operating expenses, Q2 FY2027GAAP | $158.4M | – | – |
| Income from operations, Q2 FY2027GAAP | $20.31M | – | – |
| Interest expense, net, Q2 FY2027GAAP | $14.21M | – | – |
| Net income (loss), Q2 FY2027GAAP | $10.3M | – | – |
| Diluted EPS, Q2 FY2027GAAP | $0.06 | – | – |
| Basic EPS, Q2 FY2027GAAP | $0.08 | – | – |
| Non-GAAP adjusted net income, Q2 FY2027non-GAAP | $23.4M | – | – |
| Non-GAAP adjusted EPS, Q2 FY2027non-GAAP | $0.18 | – | – |
| Non-GAAP adjusted EBITDA, Q2 FY2027non-GAAP | $39.8M | – | 46% |
| Non-GAAP free cash flow, Q2 FY2027non-GAAP | $10.46M | – | – |
| Non-GAAP gross profit, Q2 FY2027non-GAAP | $77.40M | – | – |
| Non-GAAP gross profit percentage, Q2 FY2027non-GAAP | 43% | – | – |
| Net cash provided by operating activities, Q2 FY2027GAAP | $18.84M | – | – |
| Capital expenditures, Q2 FY2027GAAP | −$8.89M | – | – |
| Net revenue, six months ended Sept 30, 2026GAAP | $344.7M | – | 27% |
| On Device Solutions net revenue before intercompany eliminations, six months ended Sept 30, 2026other | $225.6M | – | 18% |
| App Growth Platform net revenue before intercompany eliminations, six months ended Sept 30, 2026other | $120.1M | – | 48% |
| Revenue share expense, six months ended Sept 30, 2026GAAP | $160.7M | – | – |
| Other direct costs of revenue, six months ended Sept 30, 2026GAAP | $26.53M | – | – |
| Product development expense, six months ended Sept 30, 2026GAAP | $20.54M | – | – |
| Sales and marketing expense, six months ended Sept 30, 2026GAAP | $29.78M | – | – |
| General and administrative expense, six months ended Sept 30, 2026GAAP | $65.68M | – | – |
| Total costs of revenue and operating expenses, six months ended Sept 30, 2026GAAP | $303.2M | – | – |
| Income from operations, six months ended Sept 30, 2026GAAP | $41.43M | – | – |
| Interest expense, net, six months ended Sept 30, 2026GAAP | $27.10M | – | – |
| Net income (loss), six months ended Sept 30, 2026GAAP | −$2.98M | – | – |
| Diluted EPS, six months ended Sept 30, 2026GAAP | $(0.02) | – | – |
| Non-GAAP adjusted net income, six months ended Sept 30, 2026non-GAAP | $45.57M | – | – |
| Non-GAAP adjusted EPS, six months ended Sept 30, 2026non-GAAP | $0.36 | – | – |
| Non-GAAP adjusted EBITDA, six months ended Sept 30, 2026non-GAAP | $80.34M | – | – |
| Non-GAAP free cash flow, six months ended Sept 30, 2026non-GAAP | $21.79M | – | – |
| Non-GAAP gross profit, six months ended Sept 30, 2026non-GAAP | $157.4M | – | – |
| Non-GAAP gross profit percentage, six months ended Sept 30, 2026non-GAAP | 46% | – | – |
| Net cash provided by operating activities, six months ended Sept 30, 2026GAAP | $36.70M | – | – |
| Capital expenditures, six months ended Sept 30, 2026GAAP | −$15.57M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| On Device SolutionsThe filing states revenue grew 20% year over year. The CEO attributes 20+% growth in ODS and AGP to the data- and AI-driven flywheel effect and operating leverage, which is the company's explanation. | $115,604 thousand (Q2 FY2027); $115.6 million before intercompany eliminations per text | – | 20% |
| App Growth PlatformThe filing states revenue grew 42% year over year. The CEO attributes 20+% growth in ODS and AGP to the data- and AI-driven flywheel effect, which is the company's explanation. | $63,457 thousand (Q2 FY2027); $63.5 million before intercompany eliminations per text | – | 42% |
| Elimination (intercompany)The filing prints the elimination line in the segment table without a stated driver. | $(378) thousand (Q2 FY2027) | – | (51) |
Fiscal year 2027 (full year) outlook
- RevenueBetween $670 million and $690 million
- NoteNon-GAAP adjusted EBITDA of between $145 million and $155 million
- NoteNo outlook is provided for GAAP net income; the company states it cannot reasonably estimate changes in stock-based compensation expense or other items that are difficult to predict with precision
Capital returns
- No share repurchases or dividends are reported in the filing for Q2 FY2027 or the six months ended September 30, 2026.
- Treasury stock is unchanged at 758,125 shares at September 30, 2026 and March 31, 2026.
- The prior-year Q2 cash flow statement shows $13,573 thousand of net proceeds from an at-the-market common stock offering; no equivalent line is reported in Q2 FY2027.
- Diluted weighted average shares were 129,225 thousand in Q2 FY2027 versus 109,128 thousand in Q2 FY2026 (GAAP net loss period, basic and diluted shares equal).
What drove it
- The company attributes revenue growth and the 46% adjusted EBITDA growth to a data- and AI-driven flywheel effect, operating leverage efficiencies, and higher partner adoption and advertiser investment, per the CEO's statement.
- The CEO states the second quarter performance was stronger than expected; the filing does not quantify the expectation.
- The company states the lower GAAP cost line for general and administrative expense in the six-month period is not explained in the filing; the period's G&A decreased from $76,992 thousand to $65,681 thousand per the table.
- The company states the $4.7 million gain in Q2 FY2027 relates to the sale of a dormant exchange originally acquired in connection with the AdColony acquisition in 2021.
Concerns
- GAAP net income of $10,283 thousand includes a $4.7 million gain on the disposition of assets (shown as $(4,700) thousand in the reconciliation), which the company excludes from non-GAAP adjusted net income.
- The company revised prior financial statements to record a $3.5 million understatement of revenue share expense for the three months ended June 30, 2026, and a corresponding understatement of accrued revenue share liabilities. The company states this was not material to the previously reported interim results and did not affect net cash from operations or covenant compliance.
- Unrealized loss on derivatives was $8,606 thousand for the six months ended September 30, 2026, and derivative liabilities rose from $2,164 thousand to $10,770 thousand.
- Non-GAAP gross profit percentage was 43% in Q2 FY2027 versus 47% in Q2 FY2026 as printed in the reconciliation table.
- The company reports net income of $(2,981) thousand for the six months ended September 30, 2026, which remains a loss for the half-year.
- Long-term debt, net was $344,230 thousand at September 30, 2026, and the risk factors state the company has significant indebtedness.
- The risk factors section includes a reference to a potential material weakness in internal control over financial reporting, which the filing lists as a risk and does not describe as identified.
What to watch
- Whether the full-year revenue guidance of $670 million to $690 million and non-GAAP adjusted EBITDA guidance of $145 million to $155 million is reached, given six-month revenue of $344,666 thousand and six-month non-GAAP adjusted EBITDA of $80,341 thousand.
- The adjusted revised financial statements to be included in the Form 10-Q as of September 30, 2026.
- Non-GAAP gross profit percentage trend, which printed 43% for Q2 FY2027 versus 47% for Q2 FY2026.
- Revenue share expense as a share of revenue, given the $3.5 million revenue share understatement disclosed in the revision.
- Derivative liability and unrealized derivative gains or losses, which affect GAAP net income.
- Growth in the App Growth Platform segment, which printed 42% year over year in Q2 FY2027.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash: $51,620 thousand at September 30, 2026 versus $37,960 thousand at March 31, 2026.
- Total assets: $844,784 thousand at September 30, 2026 versus $841,654 thousand at March 31, 2026.
- Total stockholders' equity: $196,886 thousand at September 30, 2026 versus $195,749 thousand at March 31, 2026.
- Long-term debt, net: $344,230 thousand at September 30, 2026 versus $353,932 thousand at March 31, 2026; current portion of long-term debt: $9,375 thousand versus $7,031 thousand.
- Total liabilities: $647,898 thousand at September 30, 2026 versus $645,905 thousand at March 31, 2026.
- Derivative liabilities: $10,770 thousand at September 30, 2026 versus $2,164 thousand at March 31, 2026.
- Accounts receivable, net: $266,404 thousand at September 30, 2026 versus $251,240 thousand at March 31, 2026.
- Accrued revenue share: $107,252 thousand at September 30, 2026 versus $95,116 thousand at March 31, 2026.
- Six-month net cash provided by operating activities was $36,702 thousand; capital expenditures were $(15,568) thousand; the six-month cash flow statement shows $(5,000) thousand of original debt discount payments and $(7,044) thousand of debt repayments.
- Interest paid was $11,251 thousand in Q2 FY2027 and $22,836 thousand for the six months ended September 30, 2026. Income taxes paid were $9,692 thousand for the six months.
Analysis
Digital Turbine reported fiscal second-quarter 2027 net revenue of $178.7 million, up 27% from $140.4 million a year earlier. On Device Solutions revenue before intercompany eliminations rose 20% to $115,604 thousand, and App Growth Platform revenue rose 42% to $63,457 thousand. For the six months ended September 30, 2026, total net revenue was $344,666 thousand, up 27% from $271,303 thousand, with On Device Solutions up 18% and App Growth Platform up 48%. The company attributes these results to its data- and AI-driven flywheel, which it says is attracting higher partner adoption and advertiser investment.
Profitability improved on several measures. Income from operations was $20,307 thousand in the quarter against $6,534 thousand a year earlier, and GAAP net income was $10,283 thousand, or $0.06 per diluted share, compared with a net loss of $21,395 thousand, or $(0.20) per share. The GAAP result includes a $4.7 million gain on the sale of a dormant exchange, which the company excludes from non-GAAP adjusted net income. Non-GAAP adjusted net income was $23.4 million, or $0.18 per share, against $16.5 million, or $0.15 per share. Non-GAAP adjusted EBITDA was $39.8 million, up 46% from $27.2 million, and the company credits operating leverage together with growth for this result. Costs moved unevenly: revenue share expense rose to $87,719 thousand from $63,093 thousand, while general and administrative expense fell to $32,694 thousand from $34,083 thousand. Non-GAAP gross profit was $77,399 thousand with a printed gross profit percentage of 43%, compared with 47% in the prior-year quarter.
Cash generation was positive in the quarter. Net cash provided by operating activities was $18,843 thousand and capital expenditures were $(8,889) thousand, giving non-GAAP free cash flow of $10,457 thousand against $7,031 thousand a year earlier. For the six months, free cash flow was $21,793 thousand. Cash, cash equivalents and restricted cash rose to $51,620 thousand from $37,960 thousand at March 31, 2026. Long-term debt, net declined to $344,230 thousand from $353,932 thousand, while derivative liabilities increased to $10,770 thousand from $2,164 thousand. The filing reports no share repurchases or dividends for the period.
The company guides fiscal 2027 revenue to between $670 million and $690 million and non-GAAP adjusted EBITDA to between $145 million and $155 million. It does not provide a GAAP net income outlook, citing difficulty in estimating stock-based compensation changes. No prior-period outlook was supplied, so the filing cannot be compared with earlier guidance in this report.
The filing also discloses a revision of prior-period financial statements. The company identified immaterial adjustments that understated revenue share expense by $3.5 million for the three months ended June 30, 2026, along with a corresponding understatement of accrued revenue share liabilities. The company states this did not affect net cash from operations or debt covenant compliance, and that the adjusted statements will appear in the Form 10-Q for the quarter ended September 30, 2026. Attention should go to the revision, to the gap between the 43% and 47% gross profit percentages, and to the derivative liability increase alongside the six-month unrealized loss of $8,606 thousand.
Management, verbatim
Our strong second quarter results are further testament to the positive momentum underlying the business,
Bill Stone, CE O
The resultant 20+% revenue growth in both our ODS segment and AGP segment during the second quarter, along with operating leverage efficiencies, enabled us to achieve 46% adjusted EBITDA growth in the quarter.
Bill Stone, CE O
Not in the filing
stated, not guessed- Prior-quarter (Q1 FY2027, quarter ended June 30, 2026) figures for every metric, including the sequential changes; the filing prints only Q2 FY2027 and Q2 FY2026 for the quarter.
- Year-over-year percentage changes for revenue share, other direct costs, product development, sales and marketing, general and administrative, total costs, income from operations, interest expense, net income, EPS, non-GAAP adjusted net income, non-GAAP free cash flow, operating cash flow and capital expenditures are not printed.
- Year-over-year percentage change for non-GAAP adjusted net income, adjusted EPS and free cash flow for Q2 FY2027 is not printed.
- GAAP gross margin percentage is not printed; only non-GAAP gross profit percentage is shown.
- Prior-year six-month percentage changes for net income, EPS, operating income and cost lines are not printed.
- Segment operating profit or segment EBITDA is not reported.
- Prior guidance (previous outlook) was not provided, so vs_prior_guidance is empty and no guidance raise, lowering or narrowing can be verified.
- Guidance for gross margin, operating expenses and tax rate is not provided.
- Share repurchase and dividend data are not reported; no capital return program is described.
- Total debt principal outstanding (gross of discounts and issuance costs) is not printed; only net long-term debt and current portion are shown.
- Explanation of the cause of the year-over-year change in individual cost lines is not provided in the filing.
- Share price reaction and consensus estimates are not in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Digital Turbine filed an SEC Form 8-K (Item 2.02) with fiscal 2027 second-quarter results and an FY2027 outlook.
Ticker impact
Digital Turbine reported fiscal 2027 Q2 revenue of $178.7M (+27% YoY), GAAP EPS $0.06, and guided FY2027 revenue $670M-$690M and non-GAAP EBITDA $145M-$155M.
Likely upward bias as investors price in stronger operating momentum and the newly issued FY2027 guidance range.
This is a primary SEC 8-K earnings release with explicit quarterly results and a full-year outlook range, which typically drives near-term repricing and revisions to forward estimates.
Market effects
Supports sentiment for mobile advertising and on-device monetization platforms by signaling improving operating leverage and partner adoption.
Limited, primarily company-specific impact for a US-listed name.
Low, as the disclosure is not tied to global macro policy or cross-border regulatory actions.
Counterpoint
Non-GAAP metrics and free cash flow can diverge from GAAP earnings quality, so the market may discount the outlook if cash conversion or stock-based compensation dynamics worsen.
Key entities
- public_companyDigital Turbine, Inc.
Nasdaq-listed mobile advertising and on-device monetization platform reporting fiscal 2027 Q2 results and FY2027 guidance.
