'Our focus is expanding on the growth from the June quarter... to demonstrate sequential growth with our three growth drivers.' - Bill Stone
— Bill Stone
03Detailed Report
APPS
Digital Turbine Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 10, 2026
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Executive Summary
Digital Turbine Inc (APPS) reported a revenue of $118 million for Q1 2025, representing a sequential increase of 5% from the previous quarter. The company's performance indicates a return to growth following a challenging period, characterized by sequential growth across both its On Device Solutions (ODS) and App Growth Platform (AGP) segments. EBITDA improved to $14.5 million, an 18% sequential increase, showing management's focus on operational efficiency. Despite these positive trends, the company continues to face challenges with an overall year-over-year revenue decline of 19.39%, reflecting ongoing pressures in the U.S. device sales market. Management remains optimistic about growth prospects, citing improved execution and strategic enhancements to core offerings as key driving factors moving forward.
Key Performance Indicators
Revenue
Decreasing
117.99M
QoQ: 5.14% | YoY: -19.39%
Gross Profit
Decreasing
54.39M
46.10% margin
QoQ: 78.91% | YoY: -19.02%
Operating Income
Decreasing
-16.09M
QoQ: 12.47% | YoY: -241.21%
Net Income
Decreasing
-25.16M
QoQ: 89.36% | YoY: -207.57%
EPS
Decreasing
-0.25
QoQ: 89.22% | YoY: -205.25%
Revenue Trend
Margin Analysis
Financial Highlights
Digital Turbine's key financial metrics for Q1 2025 reveal a mixed performance:
- Revenue: $118 million, up 5% QoQ but down 19% YoY.
- Gross Profit: $54.4 million, with a gross profit margin of 46%.
- Operating Income: Loss of $16 million, improving sequentially but down sharply year-over-year due to previous high costs.
- Net Income: Loss of $25 million (EPS: -$0.25), compared to net loss of $1.61 per share in Q1 2024.
- Cash Position: $36 million in cash and cash equivalents at quarter-end, following a $2 million increase from the prior quarter.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
117.99M
-19.39%
5.14%
Gross Profit
54.39M
-19.02%
78.91%
Operating Income
-16.09M
-241.21%
12.47%
Net Income
-25.16M
-207.57%
89.36%
EPS
-0.25
-205.25%
89.22%
Key Financial Ratios
Gross Profit Margin
Fair
28.60%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.12%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.21%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.03%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.13%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.05
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.04
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-1.72x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.88x
Trading below book value, potential value opportunity or distressed
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