Digital Turbine Inc (APPS) Q2 2025: Apps

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

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

currentRatio

1.09

grossProfitMargin

45.4%

operatingProfitMargin

-11.4%

netProfitMargin

-21%

returnOnAssets

-2.96%

returnOnEquity

-13.7%

debtEquityRatio

2.28

operatingCashFlowPerShare

$-0.08

freeCashFlowPerShare

$-0.16

priceToBookRatio

1.74

priceEarningsRatio

-3.17

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
APPS Focus	45.44%	-11.40%	-13.70%	-3.17%
ADSK	90.70%	22.80%	11.40%	47.40%
INTU	76.40%	15.00%	2.62%	89.40%
ZM	75.50%	17.40%	2.57%	21.31%
SNOW	66.80%	-40.90%	-7.67%	-34.36%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	130.93	-0.13	+11.0%	View
Q4 2025	119.15	-0.18	+6.2%	View
Q3 2025	134.64	-0.22	-5.6%	View
Q2 2025	118.73	-0.24	-17.1%	View
Q1 2025	117.99	-0.25	-19.4%	View

Digital Turbine Inc (APPS) Q2 2025 Earnings Report

Earnings Highlights

Digital Turbine Inc (APPS) Q2 2025 Results: Navigating Growth Amid Challenges

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

Digital Turbine Inc (APPS) Q2 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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