Digital Turbine (NASDAQ:APPS) Shares Gap Up on Better-Than-Expected Earnings

Digital Turbine, Inc. (NASDAQ:APPS) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.94, but opened at $5.90. Digital Turbine shares last traded at $5.6410, with a volume of 4,295,677 shares changing hands.

The software maker reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.02. Digital Turbine had a negative net margin of 8.93% and a positive return on equity of 21.26%. The company had revenue of $151.40 million for the quarter, compared to the consensus estimate of $145.72 million.

Trending Headlines about Digital Turbine

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

• Positive Sentiment: Company raised fiscal 2026 guidance to about $558M in revenue and $117M of EBITDA and said its balance sheet is strengthening — this is a direct bullish fundamental catalyst for growth and profitability expectations. Digital Turbine raises fiscal 2026 guidance
• Positive Sentiment: Q3 results beat estimates: revenue grew ~12% Y/Y, adjusted EBITDA and margins expanded and the company swung to an operating profit — results that typically support a higher valuation and were cited in several earnings write-ups. APPS Q3 Earnings Beat Estimates, Revenues Up Y/Y
• Positive Sentiment: Unusual options activity showed a spike in call buying (roughly 7.2k calls), indicating some speculative bullish positioning from traders ahead of or after the print. (Options volume data reported 142% above typical call volume.)
• Neutral Sentiment: Market commentary and transcripts highlight strong international growth and AI-related product commentary on the call; these are constructive but longer‑term drivers that may take time to materially improve cash flow. Q3 Earnings Call Highlights
• Neutral Sentiment: Analyst and retail write-ups explain the intraday price surge (one note summarized why the stock jumped ~18%), but these pieces mix technical and sentiment drivers with fundamental analysis. Why Digital Turbine’s Stock Is Up 18.12%
• Negative Sentiment: Critical analysis warns of structural risks: high net leverage (significant debt), thin free cash flow relative to interest costs, and ongoing headwinds to the mobile ad model (e.g., post-Apple privacy changes). That vulnerability makes the stock sensitive to margin and growth disappointments. Spinning Toward A Turnaround Or Just Circling The Drain?

Analyst Ratings Changes

A number of research firms have recently weighed in on APPS. Craig Hallum reissued a “buy” rating and issued a $10.00 price target on shares of Digital Turbine in a report on Wednesday, November 5th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Digital Turbine in a research report on Monday, December 29th. Wall Street Zen downgraded shares of Digital Turbine from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Finally, Zacks Research cut shares of Digital Turbine from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $7.75.

Institutional Trading of Digital Turbine

A number of hedge funds have recently added to or reduced their stakes in APPS. Creative Planning grew its holdings in Digital Turbine by 9.4% in the 3rd quarter. Creative Planning now owns 23,286 shares of the software maker’s stock worth $149,000 after buying an additional 1,997 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Digital Turbine by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 57,539 shares of the software maker’s stock worth $156,000 after acquiring an additional 2,449 shares during the period. Legal & General Group Plc grew its stake in shares of Digital Turbine by 31.6% in the second quarter. Legal & General Group Plc now owns 10,624 shares of the software maker’s stock worth $63,000 after purchasing an additional 2,550 shares in the last quarter. Osaic Holdings Inc. grew its stake in shares of Digital Turbine by 22.5% in the second quarter. Osaic Holdings Inc. now owns 18,073 shares of the software maker’s stock worth $107,000 after purchasing an additional 3,322 shares in the last quarter. Finally, State of Alaska Department of Revenue acquired a new position in shares of Digital Turbine during the third quarter valued at $31,000. 63.66% of the stock is owned by institutional investors and hedge funds.

Digital Turbine Trading Down 9.6%

The firm has a market capitalization of $508.38 million, a P/E ratio of -8.83, a PEG ratio of 1.38 and a beta of 2.26. The business’s 50 day moving average is $5.07 and its two-hundred day moving average is $5.24. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 1.80.

About Digital Turbine

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.