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Digital Turbine, Inc. (APPS) Stock Fundamental Analysis & AI Rating 2026

APPS Nasdaq Patent Owners & Lessors DE CIK: 0000317788
Updated This Month • Analysis: Mar 20, 2026 • SEC Data: 2025-12-31
Combined AI Rating
SELL
73% Confidence
AGREEMENT
HOLD
62% Conf
SELL
84% Conf

📊 APPS Key Takeaways

Revenue: $422.7M
Net Margin: -7.2%
Free Cash Flow: $37.4M
Current Ratio: 1.10x
Debt/Equity: 1.82x
EPS: $-0.27
AI Rating: HOLD with 62% confidence
Digital Turbine, Inc. (APPS) receives a SELL rating with 73% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $422.7M, net profit margin of -7.2%, and return on equity (ROE) of -15.6%, Digital Turbine, Inc. demonstrates mixed fundamentals in the Market sector. Below is our complete APPS stock analysis for 2026.

Is Digital Turbine, Inc. (APPS) a Good Investment?

Claude

Digital Turbine demonstrates explosive revenue growth of 1510% YoY with strong gross margins of 56.1%, indicating successful business scaling. However, the company remains unprofitable with negative net income of -$30.4M and concerning leverage metrics including 1.82x debt-to-equity ratio and 0.7x interest coverage, raising questions about sustainable profitability and financial stability.

ChatGPT

Digital Turbine shows strong top-line expansion and solid gross profitability, but the quality of earnings remains weak because revenue is not translating into durable net income. High leverage, thin liquidity, and sub-1x interest coverage materially weaken financial health, making the business reliant on improved operating execution to stabilize fundamentals.

Why Buy Digital Turbine, Inc. Stock? APPS Key Strengths

Claude
  • + Extraordinary revenue growth of 1510% YoY demonstrating rapid market traction and business expansion
  • + Solid gross margin of 56.1% suggesting strong pricing power and operational efficiency at the product level
  • + Positive free cash flow of $37.4M despite net losses indicates underlying business quality and cash generation capability
ChatGPT
  • + Revenue has expanded sharply, indicating scale growth and broader commercial reach
  • + Gross margin of 56.1% suggests the core business has attractive unit economics before overhead and financing costs
  • + Operating cash flow and free cash flow are positive, providing some internal funding capacity

APPS Stock Risks: Digital Turbine, Inc. Investment Risks

Claude
  • ! Negative net income of -$30.4M and negative net margin of -7.2% indicate the company is not yet profitable despite massive revenue scale
  • ! High leverage with 1.82x debt-to-equity ratio and critically low 0.7x interest coverage ratio poses refinancing and solvency risks
  • ! Operating margin of only 5.6% despite 56.1% gross margin suggests significant operating expense burden that must be controlled for profitability
ChatGPT
  • ! Net losses persist despite strong revenue growth, indicating weak earnings conversion
  • ! Debt burden is elevated with debt-to-equity of 1.82x and interest coverage of only 0.7x
  • ! Liquidity is tight with a 1.10x current ratio and relatively modest cash compared with long-term debt

Key Metrics to Watch

Claude
  • * Operating margin expansion toward profitability threshold
  • * Debt-to-equity ratio reduction and interest coverage ratio improvement
  • * Sustaining revenue growth momentum while achieving operating leverage
ChatGPT
  • * Interest coverage and debt reduction progress
  • * Operating margin and net income improvement

Digital Turbine, Inc. (APPS) Financial Metrics & Key Ratios

Revenue
$422.7M
Net Income
$-30.4M
EPS (Diluted)
$-0.27
Free Cash Flow
$37.4M
Total Assets
$858.2M
Cash Position
$40.2M

💡 AI Analyst Insight

Digital Turbine, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

APPS Profit Margin, ROE & Profitability Analysis

Gross Margin 56.1%
Operating Margin 5.6%
Net Margin -7.2%
ROE -15.6%
ROA -3.5%
FCF Margin 8.9%

APPS vs Market Sector: How Digital Turbine, Inc. Compares

How Digital Turbine, Inc. compares to Market sector averages

Net Margin
APPS -7.2%
vs
Sector Avg 12.0%
APPS Sector
ROE
APPS -15.6%
vs
Sector Avg 15.0%
APPS Sector
Current Ratio
APPS 1.1x
vs
Sector Avg 1.8x
APPS Sector
Debt/Equity
APPS 1.8x
vs
Sector Avg 0.7x
APPS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Digital Turbine, Inc. Stock Overvalued? APPS Valuation Analysis 2026

Based on fundamental analysis, Digital Turbine, Inc. shows some fundamental concerns relative to the Market sector in 2026.

Return on Equity
-15.6%
Sector avg: 15%
Net Profit Margin
-7.2%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.82x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Digital Turbine, Inc. Balance Sheet: APPS Debt, Cash & Liquidity

Current Ratio
1.10x
Quick Ratio
1.10x
Debt/Equity
1.82x
Debt/Assets
77.3%
Interest Coverage
0.69x
Long-term Debt
$355.0M

APPS Revenue & Earnings Growth: 5-Year Financial Trend

APPS 5-year financial data: Year 2021: Revenue $313.6M, Net Income -$6.0M, EPS $-0.08. Year 2022: Revenue $747.6M, Net Income $13.9M, EPS $0.16. Year 2023: Revenue $747.6M, Net Income $54.9M, EPS $0.57. Year 2024: Revenue $747.6M, Net Income $35.5M, EPS $0.35. Year 2025: Revenue $665.9M, Net Income $16.7M, EPS $0.16.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Digital Turbine, Inc.'s revenue has grown significantly by 112% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.16 reflects profitable operations.

APPS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
8.9%
Free cash flow / Revenue

APPS Quarterly Earnings & Performance

Quarterly financial performance data for Digital Turbine, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $134.6M $5.1M $0.03
Q2 2026 $118.7M -$14.1M $-0.20
Q1 2026 $118.0M -$14.1M $-0.13
Q3 2025 $134.6M -$14.1M $-0.14
Q2 2025 $118.7M -$25.0M $-0.24
Q1 2025 $118.0M -$8.2M $-0.08
Q3 2024 $142.6M $4.0M $0.04
Q2 2024 $143.3M $11.7M $0.11

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Digital Turbine, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$37.4M
Cash generated from operations
Dividends
None
No dividend program

APPS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Digital Turbine, Inc. (CIK: 0000317788)

📋 Recent SEC Filings

Date Form Document Action
Apr 13, 2026 4 xslF345X06/wk-form4_1776117771.xml View →
Apr 9, 2026 4 xslF345X06/wk-form4_1775766736.xml View →
Mar 4, 2026 4 xslF345X05/wk-form4_1772661143.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772487070.xml View →
Feb 24, 2026 4 xslF345X05/wk-form4_1771967749.xml View →

Frequently Asked Questions about APPS

What is the AI rating for APPS?

Digital Turbine, Inc. (APPS) has a Combined AI Rating of SELL from Claude (HOLD) and ChatGPT (SELL) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.

What are APPS's key strengths?

Claude: Extraordinary revenue growth of 1510% YoY demonstrating rapid market traction and business expansion. Solid gross margin of 56.1% suggesting strong pricing power and operational efficiency at the product level. ChatGPT: Revenue has expanded sharply, indicating scale growth and broader commercial reach. Gross margin of 56.1% suggests the core business has attractive unit economics before overhead and financing costs.

What are the risks of investing in APPS?

Claude: Negative net income of -$30.4M and negative net margin of -7.2% indicate the company is not yet profitable despite massive revenue scale. High leverage with 1.82x debt-to-equity ratio and critically low 0.7x interest coverage ratio poses refinancing and solvency risks. ChatGPT: Net losses persist despite strong revenue growth, indicating weak earnings conversion. Debt burden is elevated with debt-to-equity of 1.82x and interest coverage of only 0.7x.

What is APPS's revenue and growth?

Digital Turbine, Inc. reported revenue of $422.7M.

Does APPS pay dividends?

Digital Turbine, Inc. does not currently pay dividends.

Where can I find APPS SEC filings?

Official SEC filings for Digital Turbine, Inc. (CIK: 0000317788) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is APPS's EPS?

Digital Turbine, Inc. has a diluted EPS of $-0.27.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is APPS a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Digital Turbine, Inc. has a SELL rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is APPS stock overvalued or undervalued?

Valuation metrics for APPS: ROE of -15.6% (sector avg: 15%), net margin of -7.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy APPS stock in 2026?

Our dual AI analysis gives Digital Turbine, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is APPS's free cash flow?

Digital Turbine, Inc.'s operating cash flow is $37.4M, with capital expenditures of $0.0. FCF margin is 8.9%.

How does APPS compare to other Market stocks?

Vs Default sector averages: Net margin -7.2% (avg: 12%), ROE -15.6% (avg: 15%), current ratio 1.10 (avg: 1.8).

Is Digital Turbine, Inc. carrying too much debt?

APPS has a debt-to-equity ratio of 1.82x, which is above the Market sector average of 0.7x. However, the current ratio of 1.10 suggests adequate short-term liquidity.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI