GET DAILY SIGNALSDigital Turbine (APPS) Earnings Preview: +13% EPS Growth and +19% Revenue Expected
Key Takeaways
- Digital Turbine (NASDAQ: APPS) is scheduled to report its fiscal 2027 second quarter results after the market close on November 9, 2026, after rescheduling its earnings call from November 2.
- Wall Street consensus calls for non-GAAP adjusted earnings per share (EPS) of about $0.17 on revenue of roughly $166.75 million.
- Those estimates imply solid year-over-year growth from the prior-year quarter's $0.15 in adjusted EPS and $140.38 million in revenue.
- The company enters the print with momentum: last quarter it beat consensus EPS by $0.05 and raised its full-year guidance.
- The App Growth Platform remains the key growth driver, expanding more than 50% year over year in recent quarters.
- Investors will watch for updated full-year guidance and any read on AI-driven ad-tech demand and margins.
- For more on Digital Turbine's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated pages.
- Explore Trending AI Robots to see how AI-driven strategies are navigating the market.
Why This Report Matters
Digital Turbine operates a mobile platform with two main segments—On Device Solutions and the App Growth Platform—that link app developers, advertisers, carriers, and device makers. The fiscal 2027 second quarter report will show whether the company's turnaround, driven by AI-powered ad targeting and first-party data, can continue a run of beats. Over the past eight quarters, it has exceeded consensus EPS estimates five times, and last quarter management lifted full-year revenue and adjusted EBITDA guidance. For investors, this update serves as a checkpoint on execution, margin trends, and demand from brand advertisers and alternative app distribution.
What the Street Is Forecasting
Analysts expect Digital Turbine to report non-GAAP adjusted EPS of approximately $0.17 for the fiscal 2027 second quarter, with revenue near $166.75 million. That compares with adjusted EPS of $0.15 and revenue of $140.38 million in the same quarter a year ago, implying roughly 13% EPS growth and 19% revenue growth. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. The company has a strong recent track record against estimates. In its most recent quarter (fiscal 2027 Q1, reported August 4, 2026), Digital Turbine delivered adjusted EPS of $0.19, beating the $0.14 consensus by $0.05, while revenue of $165.98 million cleared expectations of roughly $150 million. Revenue rose 27% year over year, led by a 56% jump in the App Growth Platform, and adjusted EBITDA climbed 69% to $42.5 million. Following that beat, management raised its full-year fiscal 2027 outlook to revenue of $650 million–$670 million and adjusted EBITDA of $145 million–$155 million. Key metrics investors will monitor include segment-level growth, non-GAAP gross margin (50% last quarter), adjusted EBITDA margin, free cash flow, and net leverage, which improved to about 2.5x from more than 5x a year earlier.
Sentiment and Risks to Consider
Sentiment heading into the print is cautiously optimistic but not euphoric. Digital Turbine shares rallied sharply after recent beats, and analysts have turned more constructive: Roth Capital resumed coverage with a Buy rating in mid-October 2026, and RBC Capital issued an Outperform rating with a $15 price target in late September. The consensus analyst rating stands at Strong Buy, with an average price target well above current levels. Still, the stock has faded from its summer highs, and the setup carries meaningful risk. Digital Turbine's five-year beta of roughly 2.97 reflects volatility well above the broader market, and short interest sits near 9.6% of shares outstanding—a sign that skeptics remain active. A weak guide or softer-than-expected App Growth Platform momentum could trigger outsized price moves given the stock's elevated sensitivity to earnings news.
Key Items on My Watchlist
Investors should first watch whether Digital Turbine reaffirms, raises, or trims its fiscal 2027 guidance for revenue of $650 million–$670 million and adjusted EBITDA of $145 million–$155 million. Any change will frame expectations for the remainder of the fiscal year. Margin trends will be a second focus. Non-GAAP gross margin reached 50% last quarter, and adjusted EBITDA margin expanded to 25.6%. Whether the company can sustain that profitability while funding AI and data initiatives will be a key test of operating leverage. Demand signals in the App Growth Platform and On Device Solutions segments also matter. The App Growth Platform has posted back-to-back quarters of more than 50% growth, driven by brand advertising and its DT Exchange business. Continued momentum in alternative app distribution and AI-enhanced ad targeting would support the growth narrative. Finally, monitor balance-sheet progress and leadership continuity. Net leverage has improved meaningfully, but the company still carries notable debt, and its chief financial officer announced a departure earlier this year—a transition worth watching alongside any commentary on cash flow and cost discipline.
Enhancing My Research with Tickeron Tools
In my regular workflow, Tickeron’s AI Screener serves as a practical way to scan for stocks matching specific technical and fundamental criteria. It helps me quickly identify patterns and compare names within the same sector, which adds efficiency when preparing for reports like this one. The tool has become a steady part of how I validate ideas without replacing my own analysis.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
APPS sees MACD Histogram crosses below signal line
APPS saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 30, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 40 instances where the indicator turned negative. In 40 of the 40 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on APPS as a result. In 72 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 88%.
APPS moved below its 50-day moving average on October 06, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for APPS crossed bearishly below the 50-day moving average on October 06, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 76%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where APPS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 88%.
The Aroon Indicator for APPS entered a downward trend on October 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 43 of 56 cases where APPS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 77%.
Following a +8.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where APPS advanced for three days, in 221 of 266 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
APPS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 11 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 15 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.374) is normal, around the industry mean (-1.586). P/E Ratio (-29.172) is within average values for comparable stocks, (15.399). Projected Growth (PEG Ratio) (0.795) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.073) among similar stocks. P/S Ratio (2.103) is also within normal values, averaging (70.854).
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. APPS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 53 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 96 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. APPS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a mobile services platform for mobile operators, device OEMs, app advertisers and publishers, that enable user acquisition, app management and monetization opportunities
Industry PackagedSoftware
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