Fiscal 2026 Revenue Growth
Total net revenue for fiscal 26 was $565.3 million, up 15% year over year, driven by strength in both On-Device Solutions (ODS) and App Growth Platform (AGP).
Digital Turbine
· APPS
May 26th, 2026
Summary
- Earnings Call Date:
- 2026-05-26
- Change Since:
- +110.81%
- Next Earnings Date:
- 2026-08-10
Earnings Call Sentiment
PositiveThe call communicated strong operational momentum: double-digit full-year revenue growth (15%), pronounced adjusted EBITDA expansion (69% YoY), a standout AGP segment (57% Q4 growth), improving margins, device and RPD gains, and FY27 guidance for continued double-digit growth. Key risks noted include continuing GAAP losses, modest cash and free cash flow relative to debt ($361M net debt, $38M cash), an ongoing CFO transition, and reliance on AI/market trends to sustain momentum. Overall, the positives—robust revenue and EBITDA growth, margin expansion, segment outperformance, and constructive guidance—outweigh the lowlights, though execution and balance sheet management remain areas to monitor.
Company Guidance
Management guided fiscal 2027 revenue of $630–650 million and adjusted EBITDA of $135–145 million, calling for another year of double‑digit top‑ and bottom‑line growth. They cited fiscal 2026 results of $565.3M revenue (+15% YoY) and $122.5M adjusted EBITDA (+69% YoY), Q4 revenue $142.5M (+20% YoY) with Q4 adjusted EBITDA $31.4M (+53% YoY) and a ~22% adjusted EBITDA margin (up ~500 bps), non‑GAAP gross margin of 50% (vs. 48% prior year), FY non‑GAAP net income $64.9M ($0.56/sh) versus GAAP net loss $37.3M ($0.33/sh), Q4 non‑GAAP net income $19.7M ($0.16/sh), free cash flow $11.8M (improved >$21M), cash $38M and net debt $361M (down from $409M). Key segment and operational metrics supporting the outlook included ODS revenue ~$382M (+~12% FY) with global devices +20% YoY and RPD >20% YoY in U.S. and international; AGP growth +57% YoY in Q4 and >20% YoY for the year; nearly 3 billion devices across >80k apps; HEP impressions +15% YoY, international RPD +40% YoY and HEP rates up ~40% YoY.
Strong Q4 Top-Line Momentum
Q4 net revenue was $142.5 million, up 20% year over year, reflecting accelerating demand entering the June quarter.
Substantial Adjusted EBITDA Expansion
Adjusted EBITDA for fiscal 26 was $122.5 million, up 69% year over year. Q4 adjusted EBITDA was $31.4 million, up 53% year over year, with margin expansion to 22% (nearly +500 basis points YoY in the quarter).
App Growth Platform (AGP) Outperformance
AGP revenue grew 57% year over year in Q4 to $52.1 million and grew over 20% for the full year, significantly outpacing the global market (AGP growing ~2x industry growth rate).
On-Device Metrics and RPD Improvement
ODS revenue for the year was $382 million, up ~12% YoY. Global devices increased over 20% YoY and revenue per device (RPD) grew over 20% YoY in both U.S. and international; international RPD expanded over 40% YoY in the quarter.
Supply and Pricing Gains
HEP supply impressions increased by over 15% YoY driven by SDK footprint expansion and APAC strength; HEP rates increased ~40% YoY due to better AI-driven targeting and advertiser willingness to pay for improved outcomes.
Improving Margins and Expense Discipline
Non-GAAP gross margin reached ~50% in Q4 (up from ~48% prior year) and cash operating expenses were controlled, rising 12% YoY to $40.5 million while the company realized efficiency gains (4% lower headcount YoY while adding >$70M revenue).
Balance Sheet Improvement and Deleveraging Progress
Net debt decreased to $361 million from $409 million at the start of the year; cash was $38 million at year end and free cash flow improved to $11.8 million (an improvement of >$21 million vs prior year). Management intends to deploy FCF toward further deleveraging.
Fiscal 2027 Guidance Reflecting Continued Growth
Company provided FY27 guidance of $630 million to $650 million revenue (implying ~11%–15% growth) and adjusted EBITDA guidance of $135 million to $145 million, signaling expected continued double-digit top- and bottom-line growth.
Operator
Good day, and welcome to the Turbine Fourth Quarter and Fiscal 26 Financial Results Conference Call. All participants will be in a listen-only mode. [Inaudible] After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch-tone phone. To withdraw your question, please press star and then 2. Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead.
Brian Bartholomew
Thanks, Nick. Good afternoon, and welcome to the Digital Turbine fourth quarter and Fiscal Year 26 Earnings Conference Call. Joining me today on the call to discuss our results are CEO, CEO, William Gordon Stone, and CFO, Stephen A. Lasher. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward looking statements. These forward looking statements are based on our current assumptions, expectations, and beliefs. Including projected operating metrics, future products and services, anticipated market demand, and other forward looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect.
Except as required by law, we undertake no obligation to update any forward looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those by our forward looking statements, please refer to the documents we file with the Securities and Exchange Comm...
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