Digital Turbine, Inc. (Nasdaq: APPS) reported a breakout third quarter for fiscal 2026, delivering a “double beat” on top and bottom lines and returning to GAAP profitability. The company’s results, released after market close on February 3, 2026, were fueled by a massive 76% surge in Adjusted EBITDA and a successful pivot toward alternative app distribution.
Financial Highlights: Q3 2026
Digital Turbine outperformed analyst expectations across nearly every major metric, signaling that its multi-year turnaround is gaining significant velocity.
Total Revenue: $151.4 million, up 12% year-over-year, surpassing the consensus estimate of $145.7 million.
GAAP Net Income: $5.1 million ($0.03 per share), a major milestone marking the company’s return to GAAP profitability.
Non-GAAP Adjusted Net Income: $21.7 million, or $0.18 per share, comfortably beating the analyst estimate of $0.11.
Adjusted EBITDA: $38.8 million, representing a 76% increase compared to the $22.0 million reported in the same period last year.
Cash Flow: Free cash flow improved significantly, supporting a stronger balance sheet for 2026.
Segment Performance & Operational Wins
The company’s growth was balanced across its two core divisions, with the international market emerging as a dominant engine.
On-Device Solutions (ODS): Continued its momentum with double-digit growth, driven by higher global device volumes. International ODS revenues now account for more than 25% of the segment’s total, up from roughly 15% a year ago.
App Growth Platform (AGP): Benefited from the integration of unified tech stacks, which improved advertiser demand. Impressions saw a 30% year-over-year increase, particularly in the APAC region.
Management Commentary
On the conference call, CEO Bill Stone highlighted the shifting tectonic plates of the mobile industry as a massive tailwind for Digital Turbine’s “Single-Tap” and alternative app store technology.
“Our Q3 results reflect the successful alignment of our resources with the evolving demand for alternative app distribution,” said Bill Stone. “As the mobile ecosystem opens up due to regulatory shifts, publishers and advertisers are flocking to our platform for more profitable ways to acquire users. We are no longer just a participant in the mobile market; we are becoming the primary alternative to the traditional closed ‘walled garden’ ecosystems.”
CFO Steve Lasher noted that the company’s cost-saving initiatives and focus on high-margin software-driven revenue were the primary drivers behind the 76% EBITDA jump.
Investor Outlook & 2026 Guidance
Following the strong performance, Digital Turbine raised its full-year fiscal 2026 guidance, reflecting management’s confidence in the final quarter.
Revised Revenue Guidance: $553 million-$558 million (up from previous estimates).
Revised Adj. EBITDA Guidance: $114 million-$117 million.
The Bottom Line
Digital Turbine is no longer just a “turnaround story”. It is now a profitable competitor in the alternative app distribution space. With a clean sweep of earnings beats and a clarified path to debt reduction, the company is well-positioned to capitalize on the regulatory shifts forcing Apple and Google to open their mobile ecosystems.
