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
118.73M
QoQ: 0.63% | YoY:-17.12%
Gross Profit
53.95M
45.44% margin
QoQ: -0.80% | YoY:-17.66%
Operating Income
-13.54M
QoQ: 15.83% | YoY:91.13%
Net Income
-24.99M
QoQ: 0.68% | YoY:84.53%
EPS
-0.24
QoQ: 4.00% | YoY:85.09%
Revenue Trend
Margin Analysis
Key Insights
- **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