Digital Turbine (NASDAQ:APPS) Shares Gap Up Following Strong Earnings

Shares of Digital Turbine, Inc. (NASDAQ:APPS) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $4.81, but opened at $6.49. Digital Turbine shares last traded at $6.93, with a volume of 18,862,389 shares.

The software maker reported $0.16 EPS for the quarter, beating the consensus estimate of $0.09 by $0.07. The business had revenue of $142.55 million for the quarter, compared to the consensus estimate of $133.23 million. Digital Turbine had a positive return on equity of 21.26% and a negative net margin of 8.93%.

Key Stories Impacting Digital Turbine

Here are the key news stories impacting Digital Turbine this week:

• Positive Sentiment: Digital Turbine beat Q4 expectations with adjusted EPS of $0.16 versus $0.09 expected, while revenue of $142.55 million also topped estimates. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: The company issued fiscal 2027 revenue guidance of $630 million to $650 million, above the market’s expectation, signaling confidence in continued growth. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Bank of America upgraded Digital Turbine from neutral to buy and set a $7.50 price target, which added to the bullish sentiment around the stock. Digital Turbine, Inc. (NASDAQ:APPS) Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Management highlighted 20% year-over-year Q4 revenue growth and 53% growth in adjusted EBITDA, reinforcing the view that profitability is improving alongside sales. Digital Turbine Stock Soars After Q4 Double Beat, Strong FY27 Revenue Outlook
• Neutral Sentiment: The company also reported full-year fiscal 2026 revenue growth of 15% and adjusted EBITDA growth of 69%, showing solid operational momentum, though GAAP net losses remain. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Bank of America raised shares of Digital Turbine from a “neutral” rating to a “buy” rating and set a $7.50 target price on the stock in a research report on Wednesday. Zacks Research lowered shares of Digital Turbine from a “strong-buy” rating to a “hold” rating in a report on Monday, April 6th. Wall Street Zen raised shares of Digital Turbine from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Digital Turbine in a report on Friday, March 27th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $8.75.

Hedge Funds Weigh In On Digital Turbine

A number of institutional investors have recently made changes to their positions in APPS. AIGH Capital Management LLC acquired a new position in shares of Digital Turbine in the 1st quarter valued at approximately $14,100,000. Granahan Investment Management LLC grew its holdings in Digital Turbine by 77.2% during the 3rd quarter. Granahan Investment Management LLC now owns 5,713,937 shares of the software maker’s stock worth $36,569,000 after acquiring an additional 2,489,376 shares in the last quarter. Invesco Ltd. grew its holdings in Digital Turbine by 369.0% during the 4th quarter. Invesco Ltd. now owns 1,829,003 shares of the software maker’s stock worth $9,145,000 after acquiring an additional 1,438,986 shares in the last quarter. Manatuck Hill Partners LLC increased its position in shares of Digital Turbine by 233.3% in the 4th quarter. Manatuck Hill Partners LLC now owns 2,000,000 shares of the software maker’s stock worth $10,000,000 after purchasing an additional 1,400,000 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Digital Turbine by 56.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,353,594 shares of the software maker’s stock valued at $6,778,000 after purchasing an additional 846,116 shares in the last quarter. 63.66% of the stock is owned by institutional investors and hedge funds.

Digital Turbine Trading Up 41.9%

The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.10 and a current ratio of 1.10. The business’s 50 day moving average price is $3.55 and its 200-day moving average price is $4.36. The firm has a market cap of $818.32 million, a price-to-earnings ratio of -14.54, a price-to-earnings-growth ratio of 0.18 and a beta of 2.40.

Digital Turbine Company Profile

Digital Turbine, Inc (NASDAQ: APPS) is a mobile technology company that streamlines content delivery and app advertising across connected devices. Its platform enables carriers, OEMs, app developers and advertisers to engage users through personalized app recommendations, in-app promotions and turnkey monetization solutions. By integrating software directly on smartphones and tablets, Digital Turbine simplifies the user journey from discovery to installation without requiring additional downloads or redirects through traditional app stores.

The company’s flagship Ignite Platform offers end-to-end campaign management, combining demand-side advertising, real-time analytics and automated content fulfillment.