[Management View]
Revenue for Q4 FY2025 was $119.2 million, up 6% YoY, driven by double-digit growth in On Device Solutions (ODS) and a 3% decline in App Growth Platform (AGP). Adjusted EBITDA grew 66% YoY to $20.5 million. Free cash flow increased by over $21 million YoY to $5.5 million. Non-GAAP gross margin improved to 48% from 46% YoY. Cash operating expenses were $36.1 million, highlighting progress in expense management and automation. GAAP net loss was $18.8 million, while non-GAAP net income was $10.1 million. Cash balance at quarter-end was $40.1 million, with a debt balance of $408.7 million.

[Outlook]
Projected revenue for FY2026 is $515 million to $525 million, with non-GAAP adjusted EBITDA of $85 million to $95 million. Management emphasized continued growth, operational efficiencies, and strategic investments in AI, first-party data, and international expansion.

[Financial Performance]
Revenue increased 6% YoY to $119.2 million. Adjusted EBITDA grew 66% YoY to $20.5 million. Free cash flow increased by over $21 million YoY to $5.5 million. Non-GAAP gross margin improved to 48% from 46% YoY. Cash operating expenses were $36.1 million, down 7% YoY. GAAP net loss was $18.8 million, while non-GAAP net income was $10.1 million.

[Q&A Highlights]
Question 1: Bill, I just wanted to focus on your RPD which was up quite a bit internationally. Can you talk about opportunities that you're seeing? Are they with new device makers, new carriers, or both? Any color would be helpful and then I had a couple of follow-ups.
Answer: Yes, thanks, Tony. Yes, on the international RPU RPDs, as you know, we've been at this for a long time to really close the gap between what we see here in the U.S. and internationally. I was really just pleased on a few fronts. One is our ability to take our international demand that's coming from the U.S. to our international partners or from Asia or coming from Europe and then bringing it onto our international footprint is really, number one, increasing our breadth. Number two is we've really improved our execution operationally to match a lot of the things that we do in terms of how things work in a market like Brazil or India or the U.K. versus how we've optimized it for here in the U.S. That execution has been better for us. And third is just increasing our distribution footprint to be able to cast a wider net to go after partners. So all of those three things together have really helped. And then as we add more and more devices in these regions from partners like Motorola, Telefonica, and so on, it adds to more density of that supply to where more demand partners want to be. So all those things combined together really helped drive improved results for us.

Question 2: Bill, you talked about the regulatory environment. Definitely, the trend is heading your way. I'm just curious if you've seen an increase in activity from the app publishers interested in either Single Tap or your app install technology and maybe you could share with us a number of new licensees signed last quarter?
Answer: Yes. So the regulatory environment continues to be favorable for us. What we're seeing right now is people want to see a level playing field. They want to make sure that publishers have access to customers without having to go through some of the gatekeepers that we see, and that's a global phenomenon. The awareness continues to build. I think it is important to separate out legislation from legal lawsuits, what we see here in the U.S. Those are different things and have different implications. But regardless of them, those are things that are positive for us as they just continue to build awareness and opportunity for us to distribute that. In other ways, as you mentioned, we distribute that through our Single Tap licensing capabilities. We've got a number of good partners. You heard me talk about Epic and you heard Jeremy mention Pinterest in remarks and a number of those we've talked about in the past. We continue to see people wanting to figure out how they can reach consumers in a very scalable way and our device footprint that we've been building over many, many years is a way to go do that and then combine that with the data that we've got access to is something that's got a lot of interest and excitement.

Question 3: And if I can include Steve to put him on the spot, but when you look at OpEx going forward, great adjusted EBITDA in the quarter and for the guide. Do you expect your expense level needs to change quite a bit or is it going to be held relatively flat going forward?
Answer: When we look at it, it would be relatively flat going forward. You may see increases as we continue to grow the business. But for the most part, it would be relatively flat.

[Sentiment Analysis]
Analysts were positive and appreciative of the company's execution and growth, particularly in international markets and AI initiatives. Management was confident and focused on continued growth and operational efficiencies.

[Quarterly Comparison]
| Metric | Q4 FY2025 | Q4 FY2024 | YoY Change |
|-------------------------|-----------------|-----------------|------------------|
| Revenue | $119.2 million | $112.5 million | +6% |
| Adjusted EBITDA | $20.5 million | $12.3 million | +66% |
| Free Cash Flow | $5.5 million | -$15.5 million | +$21 million |
| Non-GAAP Gross Margin | 48% | 46% | +2% |
| Cash Operating Expenses | $36.1 million | $38.8 million | -7% |
| GAAP Net Loss | $18.8 million | $20.1 million | -6% |
| Non-GAAP Net Income | $10.1 million | $9.5 million | +6% |
| Cash Balance | $40.1 million | $35.1 million | +$5 million |
| Debt Balance | $408.7 million | $408.7 million | No change |

[Risks and Concerns]
- Dependency on regulatory and legal trends for growth in alternative app distribution.
- Potential challenges in maintaining operational efficiencies and cost controls.
- Risks associated with international market expansion and execution.

[Final Takeaway]
Digital Turbine demonstrated strong performance in Q4 FY2025, with significant growth in revenue, adjusted EBITDA, and free cash flow. The company's focus on AI, first-party data, and international expansion has driven improved results. Management's confidence in continued growth and operational efficiencies, along with a favorable regulatory environment, positions the company well for FY2026. However, dependency on regulatory trends and maintaining cost controls remain key risks to monitor.