Digital Turbine Reports Strong Q3 FY26 Results, GAAP Net Income Turnaround, and Raises Full-Year Guidance
Summary
Digital Turbine, Inc. announced strong fiscal Q3 2026 financial results, including a 12% revenue increase, a turnaround to GAAP net income, and 76% growth in adjusted EBITDA, leading to raised full-year guidance.
Key Events
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Strong Revenue Growth
Fiscal third quarter 2026 revenue totaled $151.4 million, representing a 12% increase year-over-year compared to $134.6 million in the prior year.
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Return to GAAP Profitability
The company reported GAAP net income of $5.1 million ($0.03 per share) for Q3 FY26, a significant improvement from a GAAP net loss of $23.1 million (($0.22) per share) in Q3 FY25.
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Significant Adjusted EBITDA Growth
Non-GAAP adjusted EBITDA for the quarter surged 76% year-over-year to $38.8 million, up from $22.0 million in the comparable prior-year period.
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Raised Full-Year Guidance
Digital Turbine, Inc. raised its fiscal year 2026 expectations, now projecting revenue between $553 million and $558 million, and non-GAAP adjusted EBITDA between $114 million and $117 million.
Analysis
Digital Turbine, Inc. delivered a strong third quarter for fiscal year 2026, marked by significant year-over-year growth across key financial metrics and a notable return to GAAP profitability. The company's ability to convert a substantial GAAP net loss into a net income, coupled with robust adjusted EBITDA growth, signals improved operational efficiency and financial health. The decision to raise full-year fiscal 2026 guidance reflects management's confidence in continued business momentum and expanding market opportunities, which should be viewed positively by investors.
At the time of this filing, APPS was trading at $5.03 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $554M. The 52-week trading range was $2.11 to $8.28. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.