Shares of Digital Turbine (APPS) surged 9.56% in Tuesday's trading session following the company's better-than-expected fourth-quarter fiscal 2025 results and optimistic guidance for the upcoming fiscal year.
The mobile advertising technology company reported Q4 revenue of $119.2 million, up 6% year-over-year and surpassing analyst estimates of $116.64 million. Adjusted earnings per share came in at $0.10, significantly beating the consensus forecast of $0.04. The company's On Device Solutions (ODS) segment showed particularly strong performance, with revenue increasing 11% year-over-year, driven by impressive growth in revenue per device (RPD) both domestically and internationally.
Investors were further encouraged by Digital Turbine's outlook for fiscal year 2026. The company projects revenue between $515 million and $525 million, with non-GAAP adjusted EBITDA expected to range from $85 million to $95 million. This guidance suggests continued top-line growth and operational efficiency improvements. CEO Bill Stone highlighted the company's progress in artificial intelligence, first-party data utilization, and international expansion as key drivers for future growth. Additionally, the announcement of new partnerships, including T-Mobile going live with the IGNITE platform, has bolstered confidence in the company's strategic direction.