"Our results showed that despite struggles, international ODS revenues improved nearly 25% year-over-year driven by better RPDs and new supply."
- Bill Stone, CEO
— Bill Stone
03Detailed Report
APPS
Digital Turbine Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 10, 2026
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Executive Summary
Digital Turbine Inc (APPS) reported Q2 2025 results that showed modest revenue growth but highlighted significant operational challenges. Revenue of $118.7 million reflects a 0.6% increase quarter-over-quarter but a decline of 17.1% year-over-year, influenced by softening device sales in the U.S. Management noted improvements in international revenue per device (RPD) but acknowledged the need to revamp legacy business models and enhance operational efficiency. Despite headwinds, particularly in performance advertising, a multiyear agreement with a Tier 1 U.S. operator provides a potential growth catalyst, and robust brand revenue amidst strategic transitions offers glimmers of hope for recovery.
Key Performance Indicators
Revenue
Decreasing
118.73M
QoQ: 0.63% | YoY: -17.12%
Gross Profit
Decreasing
53.95M
45.44% margin
QoQ: -0.80% | YoY: -17.66%
Operating Income
Increasing
-13.54M
QoQ: 15.83% | YoY: 91.13%
Net Income
Increasing
-24.99M
QoQ: 0.68% | YoY: 84.53%
EPS
Increasing
-0.24
QoQ: 4.00% | YoY: 85.09%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Metrics:
- Revenue: $118.7 million (YoY: -17.12%, QoQ: +0.63%)
- Net Income: -$24.9 million (EPS: -$0.24)
- Gross Profit Margin: 45.4%
- Operating Income: -$13.5 million
- Adjusted EBITDA: $5.8 million
- Cash at End of Period: $32.8 million
- Total Debt: $415.0 million
Management pointed out that, although international RPD grew by nearly 25%, declines in U.S. device sales impacted overall financials, thus prompting a strategic shift to improve operational efficiency. The recent addition of new Tier 1 operator partnerships and the expansion into alternative app distribution highlight efforts to drive future revenue growth.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
118.73M
-17.12%
0.63%
Gross Profit
53.95M
-17.66%
-0.80%
Operating Income
-13.54M
91.13%
15.83%
Net Income
-24.99M
84.53%
0.68%
EPS
-0.24
85.09%
4.00%
Key Financial Ratios
Gross Profit Margin
Good
45.40%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-0.11%
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
-0.14%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.09
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.28
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-3.17x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.74x
Price-to-book ratio reasonable for profitable companies
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