Digital Turbine Inc reported fiscal 2026 revenue of $565.3 million, a 15% year-over-year increase, driven by strong performance in its Application Growth Platform segment. The company achieved nearly 70% growth in adjusted EBITDA to $122.5 million, reflecting significant operating leverage. For fiscal 2027, management expects revenue of $630 million to $650 million and adjusted EBITDA of $135 million to $145 million.

Fiscal 2026 Performance

Fourth quarter revenue rose 19.6% to $142.5 million. Adjusted EBITDA for the quarter surged 53% to $31.4 million, while non-GAAP gross margin expanded 200 basis points to 50%. The company recorded operating income of $10.5 million, compared with a loss of $11.7 million in the same period last year. Full-year net losses narrowed from $64.9 million to $37.7 million.

Segment Growth and Drivers

The On Device Solutions segment generated $382 million in revenue, up 12% year-over-year, with over 20% growth in global devices and revenue per device. The Application Growth Platform business saw a 57% year-over-year revenue increase in the March quarter and over 20% for the fiscal year, significantly outperforming the global market growth rate. Key growth drivers included higher advertiser demand, increased supply from international partners, and leveraging AI and first-party data for improved targeting.

Organizational Update

CFO Steve Lasher announced his departure, with Josh Kinsel assuming interim CFO duties. The company highlighted its improved financial standing, including a stronger balance sheet with cash of $38 million and total debt net of issuance costs of $361 million, down from $409 million at the start of the year.