Digital Turbine : Earnings Release FY 2025

Published: 2025-06-16 16:08:05 ET APPS

Published on 06/16/2025 at 16:08

Fourth Quarter Revenue Totaled $119.2 Million, Representing Year-over-Year Growth of 6%

Fourth Quarter GAAP Net Loss of $18.8 Million and GAAP EPS of ($0.18); Fourth Quarter Non-GAAP Adjusted Net Income1 of $10.8 Million and Non-GAAP Adjusted EPS1 of $0.10

Fourth Quarter Non-GAAP Adjusted EBITDA2 Totaled $20.5 Million, Representing Year-over-Year Growth of 66%

Fiscal Year 2025 Revenue Totaled $490.5 Million; Fiscal Year 2025 GAAP Net Loss of $92.1 Million; Fiscal Year 2025 Non-GAAP Adjusted EBITDA2 Totaled $72.3 Million

AUSTIN, Texas, June 16, 2025/PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal fourth quarter and fiscal year ended March 31, 2025.

Recent Financial Highlights:

"I am extremely proud of the improved execution by our team over the past year," said Bill Stone, CEO. "These improvements are now paying dividends, as we had solid year-over-year growth on both the top and bottom lines, including EBITDA growth of 66% in our fiscal fourth quarter. The combination of strong advertiser and partner demand, along with profit margin expansion stemming from our transformation program, is enabling us to issue guidance today for continued top- and bottom-line growth in fiscal 2026. More strategically, meaningful progress on our abilities to effectively utilize AI and Machine Learning in order to optimize the value of our first-party data, and the emergence of new opportunities for Alternative Apps distribution, have us feeling optimistic that we can continue to build on our current momentum."

Fiscal 2025 Fourth Quarter Financial Results

Total revenue for the fourth quarter of fiscal 2025 was $119.2 million, representing year-over-year growth of 6% as compared to revenue of $112.2 million for the fourth quarter of fiscal 2024. Total On Device Solutions revenue before intercompany eliminations was $86.8 million. Total App Growth Platform revenue before intercompany eliminations was $33.3 million.

GAAP net loss for the fourth quarter of fiscal 2025 was $18.8 million, or ($0.18) per share, as compared to GAAP net loss for the fourth quarter of fiscal 2024 of $236.5 million, or ($2.32) per share. GAAP net loss for the fourth quarter of fiscal 2024 included a noncash goodwill impairment charge of $189.5 million.

Non-GAAP adjusted net income1 for the fourth quarter of fiscal 2025 was $10.8 million, or $0.10 per share, as compared to Non-GAAP adjusted net income1 of $12.6 million, or $0.12 per share, in the fourth quarter of fiscal 2024.

Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2025 was $20.5 million, representing year-over-year growth of 66% as compared to Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2024 of $12.3 million.

Full Year Fiscal 2025 Financial Results

Total revenue for fiscal 2025 was $490.5 million. Total On Device Solutions revenue before intercompany eliminations was $341.6 million. Total App Growth Platform revenue before intercompany eliminations was $153.2 million.

GAAP net loss for fiscal 2025 was $92.1 million, or ($0.89) per share, as compared to GAAP net loss for fiscal 2024 of $420.4 million, or ($4.16) per share. GAAP net loss for fiscal 2024 included a noncash goodwill impairment charge of $336.6 million.

Non-GAAP adjusted net income1 for fiscal 2025 was $36.8 million, or $0.35 per share, as compared to Non-GAAP adjusted net income1 of $60.3 million, or $0.58 per share, in fiscal 2024.

Non-GAAP adjusted EBITDA2 for fiscal year 2025 was $72.3 million, as compared to Non-GAAP adjusted EBITDA2 for fiscal year 2024 of $92.4 million. The reconciliations between GAAP and Non-GAAP financial results for all referenced periods are provided in the tables immediately following the Unaudited Consolidated Statements of Cash Flows below.

Business Outlook

Based on information available as of June 16, 2025, the Company currently expects the following for fiscal year 2026:

It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company's stock price, or other items that are difficult to predict with precision.

About Digital Turbine, Inc.

Digital Turbine empowers superior mobile consumer experiences and results for the world's leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners' abilities to supercharge awareness, acquisition, and monetization - connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit https://www.digitalturbine.com.

Conference Call

Management will host a conference call and webcast today at 4:30 p.m. ET to discuss its fiscal 2025 fourth quarter financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https://app.webinar.net/kz7vAVXol8r. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 8447671. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine's website. The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.

For those unable to join the live call, a playback will be available through June 23rd, 2025. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 7941310.

An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.

Use of Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share ("EPS"), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.

Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management's internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

1Non-GAAP adjusted net income and EPS are defined as GAAP net income and EPS adjusted to exclude the effect of stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent considerations, contract settlement fees, impairment of goodwill, and tax adjustments. Readers are cautioned that non-GAAP adjusted net income and EPS should not be construed as an alternative to comparable GAAP net income figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

2Non-GAAP adjusted EBITDA is calculated as GAAP net income excluding the following cash and non-cash expenses: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent considerations, impairment of goodwill, and severance costs. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.

3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.

4Non-GAAP gross profit is defined as GAAP income from operations adjusted to exclude the effect of product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, impairment of goodwill and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company's financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.

Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:

Risks Specific to our Business

Risks Related to the Mobile Advertising Industry

Industry Regulatory Risks

Risks Related to Our Intellectual Property and Potential Liability

Risks Relating to Our Common Stock and Capital Structure

You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:Brian BartholomewDigital Turbine, [email protected]

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

(Unaudited)

(in thousands, except share and per share amounts)

Three months ended March 31,

Year ended March 31,

2025

2024

2025

2024

Net revenue

$ 119,152

$ 112,223

$ 490,506

$ 544,482

Costs of revenue and operating expenses

Revenue share

53,195

53,551

235,287

262,226

Other direct costs of revenue

9,359

7,555

34,541

34,799

Product development

9,114

11,284

39,464

54,157

Sales and marketing

14,014

15,935

61,642

61,481

General and administrative

45,162

42,278

173,647

169,617

Impairment of goodwill

189,459

336,640

Total costs of revenue and operating expenses

130,844

320,062

544,581

918,920

(Loss) income from operations

(11,692)

(207,839)

(54,075)

(374,438)

Interest and other income (expense), net

Change in fair value of contingent consideration

(300)

372

Interest expense, net

(8,855)

(7,938)

(34,783)

(30,838)

Foreign exchange transaction gain (loss)

418

(54)

1,297

101

Other expense, net

(24)

(261)

(3)

(328)

Total interest and other expense, net

(8,461)

(8,253)

(33,789)

(30,693)

(Loss) income before income taxes

(20,153)

(216,092)

(87,864)

(405,131)

Income tax provision

(1,327)

20,414

4,235

15,317

Net (loss) income

(18,826)

(236,506)

(92,099)

(420,448)

Less: net (loss) income attributable to non-controlling interest

(220)

Net (loss) income attributable to Digital Turbine, Inc.

(18,826)

(236,506)

(92,099)

(420,228)

Other comprehensive income (loss)

Foreign currency translation gain (loss)

826

(2,462)

(2,349)

(6,271)

Comprehensive income (loss)

(18,000)

(238,968)

(94,448)

(426,719)

Less: comprehensive income attributable to non-controlling interest

519

Comprehensive (loss) income attributable to Digital Turbine, Inc.

$ (18,000)

$ (238,968)

$ (94,448)

$ (427,238)

Net (loss) income per common share

Basic

$ (0.18)

$ (2.32)

$ (0.89)

$ (4.16)

Diluted

$ (0.18)

$ (2.32)

$ (0.89)

$ (4.16)

Weighted-average common shares outstanding

Basic

105,427

101,974

103,747

100,975

Diluted

105,427

101,974

103,747

100,975

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except par value and share amounts)

March 31, 2025

March 31, 2024

(Unaudited)

ASSETS

Current assets

Cash, cash equivalents, and restricted cash

$ 40,084

$ 33,605

Accounts receivable, net

181,770

191,015

Prepaid expenses

6,923

7,704

Value-added tax receivable

8,291

4,728

Other current assets

5,711

5,289

Total current assets

242,779

242,341

Property and equipment, net

46,966

45,782

Right-of-use assets

9,924

9,127

Intangible assets, net

257,697

313,505

Goodwill

221,741

220,072

Other non-current assets

33,747

34,713

TOTAL ASSETS

$ 812,854

$ 865,540

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$ 139,944

$ 159,200

Accrued revenue share

35,264

33,934

Accrued compensation

7,503

7,209

Acquisition purchase price liabilities

1,697

Other current liabilities

38,118

35,681

Total current liabilities

222,526

236,024

Long-term debt, net of debt issuance costs

408,687

383,490

Deferred tax liabilities, net

16,308

20,424

Other non-current liabilities

11,375

11,670

Total liabilities

658,896

651,608

Commitments and contingencies

Stockholders' equity

Preferred stock

Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1)

100

Common stock

$0.0001 par value: 200,000,000 shares authorized; 106,735,767 issued and 105,977,642 outstanding at March 31, 2025; 102,877,057 issued and 102,118,932 outstanding at March 31, 2024

Additional paid-in capital

892,665

858,191

Treasury stock (758,125 shares at March 31, 2025 and March 31, 2024)

(71)

Accumulated other comprehensive loss

(51,304)

(48,955)

Accumulated deficit

(687,442)

(595,343)

Total stockholders' equity

153,958

213,932

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 812,854

$ 865,540

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

Three months ended March 31,

2025

2024

Cash flows from operating activities:

Net (loss) income

$ (18,826)

$ (236,506)

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

23,126

20,924

Non-cash interest expense

545

(531)

Allowance for credit losses

623

627

Stock-based compensation expense

8,126

6,743

Change in estimate of remaining contingent consideration

Noncash lease expense

788

781

Foreign exchange transaction (gain) loss

(418)

Impairment of goodwill

189,459

(Increase) decrease in assets:

Accounts receivable, gross

16,847

25,176

Prepaid expenses

(18)

2,920

Value-added tax receivable

(640)

8,772

Other current assets

(423)

(8,992)

Right-of-use asset

108

(420)

Other non-current assets

237

(190)

Increase (decrease) in liabilities:

Accounts payable

(7,961)

108

Accrued revenue share

927

(32,119)

Accrued compensation

(1,081)

(111)

Other current liabilities

(10,007)

(2,628)

Deferred income taxes

1,298

15,909

Other non-current liabilities

(1,743)

(1,732)

Net cash provided by (used in) operating activities

11,508

(11,756)

Cash flows from investing activities

Equity investments

(9,956)

Business acquisitions, net of cash acquired

Capital expenditures

(6,944)

(6,895)

Net cash used in investing activities

(6,944)

(16,851)

Cash flows from financing activities

Proceeds from borrowings

25,000

Payment of debt issuance costs

Repayment of debt obligations

(15,000)

Payment of withholding taxes for net share settlement of equity awards

(234)

(110)

Options exercised

270

Net cash provided by financing activities

9,975

Effect of exchange rate changes on cash and cash equivalents and restricted cash

170

2,772

Net change in cash and cash equivalents and restricted cash

4,770

(15,860)

Cash and cash equivalents and restricted cash, beginning of period

35,314

49,465

Cash and cash equivalents and restricted cash, end of period

$ 40,084

$ 33,605

REVENUE BY SEGMENT

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2025

2024

% Change

2025

2024

% Change

On Device Solutions

$ 86,832

$ 78,504

11 %

$ 341,632

$ 370,112

(8) %

App Growth Platform

33,250

34,437

(3) %

153,229

178,760

(14) %

Elimination

(930)

(718)

30 %

(4,355)

(4,390)

(1) %

Consolidated

$ 119,152

$ 112,223

6 %

$ 490,506

$ 544,482

(10) %

GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2025

2024

2025

2024

Net revenue

$ 119,152

$ 112,223

$ 490,506

$ 544,482

(Loss) income from operations

(11,692)

(207,839)

(54,075)

(374,438)

Add-back items:

Product development

9,114

11,284

39,464

54,157

Sales and marketing

14,014

15,935

61,642

61,481

General and administrative

45,162

42,278

173,647

169,617

Depreciation of software included in other direct costs of revenue

208

4,045

Contract settlement fees

3,800

Impairment of goodwill

189,459

336,640

Non-GAAP gross profit

$ 56,604

$ 51,325

$ 224,686

$ 251,502

Non-GAAP gross profit percentage

48 %

46 %

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET INCOME

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2025

2024

2025

2024

Net (loss) income

$ (18,826)

(236,506)

$ (92,099)

$ (420,448)

Add-back items:

Stock-based compensation expense

8,126

6,743

33,543

33,763

Amortization of intangibles

13,429

16,039

55,612

64,321

Change in fair value of contingent consideration

300

(372)

Tax adjustment (1)

7,165

33,817

29,551

33,817

Business transformation costs

2,127

2,060

9,418

Transaction-related expenses

152

177

359

338

Severance costs

666

710

3,711

2,795

Contract settlement fees

3,800

Impairment of goodwill

189,459

336,640

Non-GAAP adjusted net income

$ 10,796

$ 12,566

$ 36,837

$ 60,272

Non-GAAP adjusted net income per common share

$ 0.10

$ 0.12

$ 0.35

$ 0.58

Weighted-average common shares outstanding, diluted

108,150

103,451

105,810

103,928

(1) Valuation allowance

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2025

2024

2025

2024

Net (loss) income

$ (18,826)

$ (236,506)

$ (92,099)

$ (420,448)

Add-back items:

Stock-based compensation expense

8,126

6,743

33,543

33,763

Depreciation and amortization

23,126

20,924

82,910

83,858

Interest expense, net

8,855

7,938

34,783

30,838

Other expense, net

261

328

Change in fair value of contingent consideration

300

(372)

Business transformation costs

2,127

2,060

9,418

Foreign exchange transaction (gain) loss

(418)

(1,297)

(101)

Income tax provision

(1,327)

20,414

4,235

15,317

Transaction-related expenses

152

177

359

338

Severance costs

666

710

3,711

2,795

Contract settlement fees

3,800

Impairment of goodwill

189,459

336,640

Non-GAAP adjusted EBITDA

$ 20,462

$ 12,301

$ 72,308

$ 92,374

GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW

(in thousands)

(Unaudited)

Three months ended March 31,

2025

2024

Net cash provided by (used in) operating activities

$ 11,508

$ (11,756)

Capital expenditures

(6,944)

(6,895)

Transaction-related expenses

152

177

Severance costs

666

710

Business transformation costs

2,127

Non-GAAP free cash flow provided (used) by operations

$ 5,466

$ (15,637)

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SOURCE Digital Turbine, Inc.

Released June 16, 2025

Disclaimer

Digital Turbine Inc. published this content on June 16, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 16, 2025 at 20:07 UTC.