Digital Turbine — Fiscal 2027 Second Quarter Earnings Summary

Financial Performance:

• Total net revenue for the quarter ended September 30, 2026, was $178.7 million, a 27% year-over-year increase compared to $140.4 million in the same period of fiscal 2026.
• GAAP net income was $10.3 million ($0.06 per diluted share), compared to a GAAP net loss of $21.4 million ($0.20 per share) in the prior year period.
• Non-GAAP adjusted net income was $23.4 million ($0.18 per share), up from $16.5 million ($0.15 per share) in the prior year period.
• Non-GAAP adjusted EBITDA totaled $39.8 million, representing a 46% year-over-year increase from $27.2 million.
• Non-GAAP free cash flow was $10.5 million.
• Net cash provided by operating activities was $18.8 million, compared to $14.5 million in the prior year quarter.
• Capital expenditures were $8.9 million in the quarter.
• Total assets were $844.8 million as of September 30, 2026, compared to $841.7 million as of March 31, 2026.
• Total liabilities were $647.9 million as of September 30, 2026.
• Long-term debt, net, was $344.2 million as of September 30, 2026, down from $353.9 million as of March 31, 2026.
• Cash, cash equivalents, and restricted cash were $51.6 million as of September 30, 2026.

Guidance and Future Outlook:

• For the full fiscal year 2027, the Company expects revenue between $670 million and $690 million.
• For the full fiscal year 2027, the Company expects Non-GAAP adjusted EBITDA between $145 million and $155 million.
• The Company stated it is not reasonably practicable to provide GAAP net income guidance due to the inability to estimate stock-based compensation expense and other unpredictable items.

Business Segments and Product Lines:

• On Device Solutions (ODS) net revenue was $115.6 million, representing 20% year-over-year growth.
• App Growth Platform (AGP) net revenue was $63.5 million, representing 42% year-over-year growth.
• Both ODS and AGP segments achieved over 20% revenue growth in the second quarter.

Risks and Challenges:

• The Company notes risks related to the mobile advertising industry, including intense competition, rapid evolution of markets, and dependence on smartphone usage growth.
• Risks include potential adverse effects from AI development, regulatory environments, data security breaches, and cyber-attacks.
• The Company has a history of net losses and significant indebtedness which could limit financial flexibility.
• A material weakness in internal control over financial reporting could result in material misstatements if not remediated.
• The Company revised prior period financial statements due to immaterial adjustments related to contractual revenue share obligations, resulting in a $3.5 million understatement of revenue share expense for the three months ended June 30, 2026.

Management Commentary and Tone:

• CEO Bill Stone described the results as a "testament to the positive momentum underlying the business."
• Management highlighted a "flywheel effect" where data- and AI-driven improvements are self-sustaining, attracting higher partner adoption and advertiser investment.
• Management expressed "greater conviction" that the company has the right team, platform, market position, and vision to exploit opportunities.
• Operating leverage efficiencies contributed to the 46% adjusted EBITDA growth.

Other Key Points:

• The Company recognized a $4.7 million gain in the quarter relating to the sale of its dormant exchange, originally acquired in connection with the AdColony acquisition in 2021.
• The Company hosted a conference call and webcast on November 9, 2026, to discuss results and forward guidance.
• The Company changed its presentation of amortization of debt discount and issuance costs in its condensed consolidated statements of operations, reclassifying them to interest expense, net.
• The Company sold assets for $4.7 million during the six months ended September 30, 2026.
• Proceeds from borrowings, net of original issue discount, were $418.7 million in the six months ended September 30, 2025, while repayments of debt obligations were $421.1 million in the same period.