One-glance verdict
Overvalued
$-0.82 our estimate vs market $11.30
Wall Street consensus: $17.17 (-2,189.8% lower than our fair-value estimate)
1476% below our estimate, beyond the bull case
Fundamentals snapshot
Digital Turbine, Inc.
APPS · NCM · Technology · Software - Application
Current price
$11.30
52-week range
$2.74 - $15.34
Market cap
$1.37B
Balance sheet
Distressed
0.58x Concerning
Net debt $313.16M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 6.2% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -20.4% last year — the company lost money on shareholders' equity.
What this company does
Digital Turbine, Inc.
Digital Turbine helps mobile app developers get their apps onto new smartphones, often by having them pre-installed when you first turn the phone on. The company makes most of its money by charging these developers for that valuable placement and for other mobile advertising. This is important because it gives app creators a powerful shortcut to reach customers in the very crowded mobile app ecosystem (the whole community of app makers, phone companies, and advertisers).
How the company got here
Digital Turbine started in 1998 and has changed names several times, officially becoming Digital Turbine, Inc. in 2015. A key early move was acquiring the original Digital Turbine business in 2011, which gave it a foundation in mobile software. The company's growth significantly accelerated in 2021 with the acquisition of three other companies—AdColony, Fyber, and Appreciate—which transformed it from a company focused on pre-installed apps into a broader mobile advertising technology platform. This series of acquisitions expanded its services to help app developers and advertisers with user acquisition (getting new users) and monetization (making money from their apps).
What it actually does
Imagine you get a new Android phone from a provider like Verizon or AT&T. When you turn it on for the first time, you might see apps like Uber or Starbucks already installed. Digital Turbine's software, often called Ignite, is what makes that happen. The company partners with mobile carriers (the companies that provide your phone service) and device manufacturers (like Samsung) to preload apps onto phones. Beyond just pre-installing apps, Digital Turbine also helps advertisers reach potential customers through ads within other apps and provides tools for app developers to make money from their creations.
On Device Solutions
This is Digital Turbine's original and core business, focused on software that gets installed directly on smartphones. Its main product, Ignite, works with mobile carriers and phone makers to install a curated set of apps onto your new phone during the initial setup process. App developers pay Digital Turbine to have their apps included in this pre-installed bundle, giving them immediate access to new users. This segment generates revenue by simplifying the app discovery process for consumers and providing a direct distribution channel for app publishers.
App Growth Platform
This part of the company functions more like a traditional advertising network for the mobile world. It helps app developers who want to attract new users by placing ads for their apps inside other existing apps. For example, you might see an ad for a new game while you're using a weather app. The App Growth Platform also provides tools for app developers to make money by showing ads to their own users. This segment was significantly built out through the acquisitions of companies like AdColony and Fyber.
What management is betting on now
Digital Turbine is currently focused on integrating its various acquired technologies into a single, unified platform called Launchpad. A major priority is expanding its partnerships with international mobile carriers and device makers to grow its On-Device Solutions business outside of North America. The company is also heavily investing in artificial intelligence (AI) to improve the targeting and effectiveness of its advertising services, as seen in its expanded partnership with Google Cloud. Another key strategy is to offer alternative ways for users to download apps, bypassing traditional app stores and giving developers new distribution channels.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$-15.97M
FY2026 Q1
$1.17M
FY2026 Q4
$-18.62M
FY2027 Q1
$11.18M
Revenue
$165.98M
Net income
$-11.33M
Diluted EPS
-0.09
Operating cash flow
$17.86M
Free cash flow
$11.18M
Fetching…
Sources
Revenue
$142.55M
Net income
$-7.34M
Diluted EPS
-0.03
Operating cash flow
$4.38M
Free cash flow
$-18.62M
Fetching…
Sources
Revenue
$151.40M
Net income
$5.11M
Diluted EPS
0.03
Operating cash flow
$14.18M
Free cash flow
—
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Sources
Revenue
$140.38M
Net income
$-21.39M
Diluted EPS
-0.20
Operating cash flow
$14.46M
Free cash flow
—
Fetching…
Sources
Revenue
$130.93M
Net income
$-14.10M
Diluted EPS
-0.13
Operating cash flow
$8.79M
Free cash flow
$1.17M
Fetching…
Sources
Revenue
$119.15M
Net income
$-18.83M
Diluted EPS
-0.18
Operating cash flow
$11.51M
Free cash flow
$-15.97M
Fetching…
Sources
Revenue
$134.64M
Net income
$-23.13M
Diluted EPS
-0.22
Operating cash flow
$10.44M
Free cash flow
—
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Sources
Revenue
$118.73M
Net income
$-24.99M
Diluted EPS
-0.24
Operating cash flow
$-8.72M
Free cash flow
—
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Sources
Is it cheap or expensive?
Fair value $-0.82 vs current price $11.30
Wall Street consensus is the average analyst price target: $17.17 (-2,189.8% lower than our fair-value estimate).
Our most-likely fair value is $-0.82 a share — about 107.3% below today's price of $11.30, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $313.2M. Interest coverage 0.6x.
Net debt
$313.16M
Interest coverage
0.58x
Digital Turbine, Inc.'s profit covers its interest bill about 0.6 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
APPS
BASELINE
Digital Turbine, Inc.
Total debt $356.09M Interest coverage 0.58x This is the baseline the peer rows are being compared against.
Total debt $2.32B Interest coverage -19.95x -100% vs APPS This peer has almost no interest-payment cushion compared with APPS.
Total debt $22.09M Interest coverage -20.30x -100% vs APPS This peer has almost no interest-payment cushion compared with APPS.
Total debt $416.98M Interest coverage 5.17x +789% vs APPS Carries about 8.9x more debt cushion than APPS.
What you should know
The case for and against APPS
2 Rewards
1 Risk
Rewards
-
Revenue grew 6.2% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -20.4% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
11.89x
P/B
7.17x
P/S
2.28x
EV/EBITDA
13.20x
PEG ratio
0.69x
Profitability
How much profit each dollar creates
Gross margin
49.1%
Operating margin
13.9%
Net margin
-5.8%
ROE
-20.4%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.87x
Current ratio
1.21x
Quick ratio
1.12x
Total debt
$356.09M
Total cash
$42.93M
Growth
How the business has been compounding
Revenue TTM
$600.31M
Revenue 5Y CAGR
-6.8%
EPS TTM
-0.29
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$50.88M
Free CF TTM
$11.19M
FCF margin
1.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—