Digital Turbine (NASDAQ: APPS) shares tumbled 18.75% in pre-market trading on Wednesday following the release of its fiscal 2026 first-quarter financial results and the announcement of a potential stock offering.
The mobile advertising technology company reported mixed results for the quarter ended June 30, 2025. While revenue grew 11% year-over-year to $130.9 million, beating analyst estimates of $121.945 million, the company's adjusted earnings per share (EPS) of $0.05 fell short of the expected $0.08. This represents a 37.5% miss and a 28.57% decrease from the same period last year.
Despite raising its fiscal year 2026 revenue guidance to between $525 million and $535 million, investors seemed to focus on the earnings miss and the company's announcement of a mixed shelf offering of up to $150 million in common stock. This potential dilution of existing shareholders' stakes likely contributed to the sharp pre-market decline.
CEO Bill Stone highlighted increased demand for the company's Ignite platform and improved device sales as key drivers of performance. However, the market's negative reaction suggests concerns about the company's profitability and the impact of the potential share offering on stock value.
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