Digital Turbine, Inc. Q3 FY2026 earnings call

• Revenue for the quarter was $151.4 million, a 12% year-over-year growth. EBITDA was $39 million, a 76% year-over-year growth with 26% EBITDA margins.
• Diversification of revenues across many products and geographies.
• Increasing use of AI and machine learning tools for revenue generation and operational efficiency, with gross profit dollars increasing by over 25% in December while operating expenses declined.
• Strengthened balance sheet with debt leverage ratio down from over 5 turns to roughly 3 turns in a year.
• On Device Solutions: International growth driving revenue. AGP: Momentum continued with Brand and DTX/SSP growth.
• Strategic priorities: Unlocking value in first-party data, building flywheel between supply and demand (over 80,000 apps integrated with their technology), scaling brand business, expanding services through IGNITE, and pursuing alternative app opportunity with three largest global mobile game developers using Single Tap capabilities.

Digital Turbine's fiscal 2026 third quarter results were broken out by segment. The On Device Solutions business generated nearly $99.6 million in revenue, up approximately 9% from the prior year. This growth was primarily driven by international business, with over 20% increase in both devices and revenue per device (RPD), contributing more than 60% year-over-year international growth, and over 30% of revenues on the Ignite platform coming from outside the United States. The Application Growth Platform (AGP) business generated $52.6 million in revenue, up 19% year-over-year, with strong results in the Brand business and over 30% growth in the DTX/SSP business.

• Following stronger-than-expected December performance and improved visibility, the full-year revenue guidance is raised to $553 million to $558 million.
• Adjusted EBITDA guidance is raised to $114 million to $117 million.

Q: Anthony Joseph Stoss asked about the flywheel in the app install business and how app install customers are now giving advertising within the app.

A: William Gordon Stone said there's enormous opportunity with over 80,000 applications using their technology. The ability to integrate budgets paying back into acquiring users feeds back into monetization, creating a flywheel for incremental growth in revenue and better margins.

Q: Anthony Joseph Stoss asked about Google Gemini's impact.

A: William Gordon Stone viewed it as positive for their business, as more games coming to market need distribution, and their distribution footprint can help bring more games to market.

Q: Anthony Joseph Stoss asked about how the three largest global gaming companies plan to use Single Tap and its ramp.

A: William Gordon Stone said Single Tap is live today. They're using it for alternative applications, house billing, and dual downloads, reducing friction and lowering cost structure for app publishers, and it's already generating revenue.

Q: Arthur Chu asked about Meta back on iOS bidding for non-IDFA traffic.

A: William Gordon Stone stated they are outgrowing the market but had no specific comment on Meta's actions on iOS