📊 APPS Key Takeaways
Is Digital Turbine, Inc. (APPS) a Good Investment?
Digital Turbine achieved exceptional 1065% revenue growth but remains unprofitable with an interest coverage ratio of 0.6x, indicating inability to service its $361M debt load from operating income. The combination of negative net income, negative returns on equity and assets, high leverage, and weak cash position relative to debt obligations creates material refinancing and solvency risk.
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.
Digital Turbine, Inc. Key Strengths (APPS)
- Exceptional 1065% revenue growth demonstrates strong market demand and successful growth strategy
- Solid 56.9% gross margin indicates healthy unit economics before operating expenses
- Positive $41.8M operating cash flow provides near-term liquidity support
- 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
- Critical: Interest coverage ratio of 0.6x means company cannot cover debt service from operating income, creating refinancing risk
- Net loss of $37.7M despite massive revenue growth suggests acquisitions lack profitability integration
- High debt-to-equity of 1.88x combined with low cash position ($37.7M) amplifies refinancing risk
- Negative ROE (-19.6%) and ROA (-4.5%) indicate shareholder value destruction despite top-line growth
- Free cash flow margin of 2.0% leaves minimal operational buffer; heavily dependent on sustained growth
- 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
- Interest coverage ratio - must exceed 1.0x to ensure debt serviceability
- Path to net profitability - timeline and sustainability of positive net income
- Debt reduction trajectory - ability to delever toward healthier 1.0x debt-to-equity
- Operating margin expansion - whether company can achieve operating leverage at higher revenue levels
- Cash conversion - quality of earnings and free cash flow generation sustainability
- Interest coverage and debt reduction progress
- Operating margin and net income improvement
Digital Turbine, Inc. (APPS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.0% FCF margin may limit capital allocation flexibility.
APPS Profit Margin, ROE & Profitability Analysis
APPS vs Market Sector: How Digital Turbine, Inc. Compares
How Digital Turbine, Inc. compares to Market sector averages
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.
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
APPS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Digital Turbine, Inc.'s revenue has declined by 24% over the 5-year period, indicating business contraction. The most recent EPS of $-4.16 indicates the company is currently unprofitable.
APPS Revenue Growth, EPS Growth & YoY Performance
APPS Quarterly Earnings & Performance
| 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
APPS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Digital Turbine, Inc. (CIK: 0000317788)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APPS
What is the AI rating for APPS?
Digital Turbine, Inc. (APPS) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APPS's key strengths?
Claude: Exceptional 1065% revenue growth demonstrates strong market demand and successful growth strategy. Solid 56.9% gross margin indicates healthy unit economics before operating expenses. 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: Critical: Interest coverage ratio of 0.6x means company cannot cover debt service from operating income, creating refinancing risk. Net loss of $37.7M despite massive revenue growth suggests acquisitions lack profitability integration. 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 $565.3M.
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 $-0.33.
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 grade reflects both perspectives for balanced insights.
What is APPS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Digital Turbine, Inc. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is APPS stock overvalued or undervalued?
Valuation metrics for APPS: ROE of -19.6% (sector avg: 15%), net margin of -6.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is APPS's AI grade for 2026?
Our dual AI analysis gives Digital Turbine, Inc. a combined C grade 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 $41.8M, with capital expenditures of $30.6M. FCF margin is 2.0%.
How does APPS compare to other Market stocks?
Vs Default sector averages: Net margin -6.7% (avg: 12%), ROE -19.6% (avg: 15%), current ratio 1.16 (avg: 1.8).
Is Digital Turbine, Inc. carrying too much debt?
APPS has a debt-to-equity ratio of 1.88x, which is above the Market sector average of 0.7x. However, the current ratio of 1.16 suggests adequate short-term liquidity.