Digital Turbine, Inc. Q2 FY2026 earnings call

• September quarter showcased accelerating business momentum across On Device Solutions and App Growth Platform segments.
• Revenue for the quarter was $140.4 million, 18% year-over-year growth; adjusted EBITDA grew 78% year-over-year.
• Key drivers: higher advertiser demand leading to improved pricing and fill rates, increased supply from global devices and AGP supply volumes, and progress on first-party data and AI machine learning platform.
• Strategic progress: first-party data investments and AI-driven decisioning unlocking precision and scale, growing brand engagement with direct brands accounting for 47% of brand revenue in Q2, and regulatory momentum favoring alternative app distribution models.

The On Device Solutions (ODS) business generated $96.5 million in revenue, up approximately 17% from the prior year. International ODS revenue surged over 80% year-over-year and exceeded 25% of total ODS revenues. The Application Growth Platform (AGP) business posted $44.7 million in revenue, up 20% year-over-year. ODS saw 10% growth in both Global Devices and revenue per device year-over-year, with international ODS driving 80% revenue growth. AGP had over 40% sequential improvement in brand business and double-digit increase in DTX/SSP business.

• Raised full-year revenue guidance to $540 million to $550 million for fiscal 2026.
• Raised adjusted EBITDA guidance to $100 million to $105 million for fiscal 2026, representing increases from prior outlooks.

Q: Congrats on continued execution. Bill, can you talk about brand business ROI and SingleTap progress?

A: On brand business, direct brand relationships account for nearly half of total brand revenue; SingleTap installs saw almost 50% quarter-over-quarter increase.

Q: Question related to AI and its role in operations or advertising?

A: AI is critical for strategy, used to simplify/automate business processes and for DTiQ AI machine learning platform to drive better return on ad spend.

Q: Effect of recent Supreme Court ruling on Google Play on DT as alternative app storefront?

A: Excited about democratization of app distribution, facilitating app publishers' direct access and user acquisition.

Q: Question on Ignite Graph, DTiQ, and competitive landscape?

A: Ignite Graph uses over 1,000 signals from network for better outcomes; on competitive landscape, less competition in On Device Solutions side recently, AGP focused on building flywheel rather than direct competition changes.