Digital Turbine posts 27% revenue growth, margin shrink and unchanged profit outlook, shares plunge
Digital Turbine reported fiscal Q2 2027 revenue of $178.7 million, up 27% year‑over‑year, with GAAP EPS of $0.06 and non‑GAAP EPS of $0.18. Non‑GAAP adjusted EBITDA rose 46% to $39.8 million, but gross margin fell to 43% from 47% and profit guidance was left unchanged. The company raised full‑year revenue guidance to $670 million‑$690 million while keeping the adjusted EBITDA range at $145 million‑$155 million. The results triggered a sharp drop in the stock price.
Why it matters
Analysts note that the margin compression and unchanged profit outlook outweighed the revenue beat, prompting a steep sell‑off (the company’s stock fell 23% after‑hours and 36% intraday). The revised revenue guidance and steady EBITDA outlook set the performance expectations for the rest of FY2027.
Key facts
- 1Total revenue for the quarter was $178.7 million, a 27% year‑over‑year increase. prnewswire.com
- 2GAAP diluted EPS for the quarter was $0.06 per share. prnewswire.com
- 3Non‑GAAP adjusted EPS for the quarter was $0.18 per share. prnewswire.com
- 4Non‑GAAP adjusted EBITDA was $39.8 million, up 46% year‑over‑year. prnewswire.com
- 5Fiscal 2027 revenue guidance was raised to $670 million‑$690 million. prnewswire.com
- 6Fiscal 2027 adjusted EBITDA guidance remained at $145 million‑$155 million. prnewswire.com
Open questions
- The magnitude of the stock decline differs across sources: 23% after‑hours (source 6) versus 36% intraday (source 14).
Summary written by AlphAI AI Desk from 14 of 14 sources. Not investment advice. Figures are as stated by the linked sources.