Digital Turbine APPS Q4 2025 Earnings Transcript

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Credit Facility Extension: Management reported closing a short-term extension of the credit facility and is seeking a more permanent debt solution

DTX Exchange Growth: DTX exchange growth was driven by diversification

SUMMARYManagement emphasized a return to year-over-year growth and highlighted expense controls and operational efficiencies as key drivers of margin expansion

The extension of the credit facility and stated confidence in achieving a more permanent capital structure were cited as critical steps toward financial stability

In addition, the company pointed to gress in artificial intelligence, first-party data, and international device expansion as central elements for future growth and differentiation

Strategic relationships, including new wins such as T-Mobile going with IGNITE and alternative app partnerships with leading publishers, were presented as evidence of competitive momentum

Chief Financial Officer Stephen Lasher said, "fiscal fourth quarter marked a true inflection point for the company. " referencing both top-line and EBITDA growth year-over-year

Chief Executive Officer Bill Stone stated, "the continues to build on that momentum, and our current June (Q1 FY2026) is positively" expressing expectations for further imvements both sequentially and year-over-year

Lasher confirmed that cash operating expense levels are expected to remain "relatively flat" moving forward

The management team noted gress in diversifying AGP and DTX supply, citing DTX revenues from non-gaming applications have nearly doubled over the past year and reduced dependency on gaming app inventory

Stone described regulatory and legal trends globally as "favorable for us. " outlining opportunities for Single Tap and alternative app distribution as regulatory environments become more open

Lasher highlighted, "we are actively positioning the company for sustained growth in 2026 and beyond. " reinforcing the focus on execution, financial discipline, and long-term value creation

INDUSTRY GLOSSARYODS (On Device Solutions): Digital Turbine's segment focused on embedding and monetizing software directly on mobile devices through partnerships with OEMs and carriers

AGP (App Growth Platform): Digital Turbine's segment offering tools and services to grow app installs and engagement, mainly via mobile advertising solutions

RPD (Revenue Per Device): A key performance metric indicating the average revenue generated from each installed device within a specific period

DTX: Digital Turbine's consolidated advertising exchange, previously comprised of AdColony and Fyber supply, facilitating media transactions across mobile apps

IGNITE: Digital Turbine's prietary platform deployed on devices to enable app installation, user engagement, and monetization features for OEMs and partners

Full Conference Call TranscriptBill Stone: Thanks, Brian, and thank you all for joining our call tonight

Before down our specific operating results and ary, I wanted to vide three important

First, our has returned to year-over-year growth on both the top and bottom lines

Our imved execution and actions are now bearing fruit

Secondly, the continues to build on that momentum

Our current June is positively and we expect to show imved performance both sequentially and year-over-year

And finally, we ext our credit facility with our bank group

We believe this extension combined with our imved execution vides more opportunities to lower our cost of capital into the future

It was an important transition year to begin our return to growth as our investments in a variety of activities set us up well for today and tomorrow

Specifically, our new version of Ignite, our material gress on managing and leveraging our first-party data into our AI machine learning platform, our launch of new imved bidding capabilities, and many back-end corporate systems that are simplifying and automating our work

All of these things are helping drive imved performance in the present and into the future

For the March, on the on-device or ODS, we showed double-digit year-on-year top-line growth

Devices on our legacy U

Partners declined year-over-year but were offset by new device launches from outside the U

The real highlight of our ODS growth was due to imved revenue per device, or RPD

This was driven by strong advertiser demand and imved monetization over the right foot device

As we've discussed on prior calls, the opportunity for organic growth with imved international revenue per device has been a focus area for us and I was really pleased to see us build upon our imved execution from the December

One of our AGP focus areas continues to be our investment in brands that want to leverage our first-party data to reach their existing potential customers over our global network

As discussed on prior calls, a strategic objective for us and something we've invested in to differentiate us from other players

We're now in a great position to continue to grow and we'll continue to invest here

We believe we are building a moat given the high barriers to entry work required to earn the trust of top brands and agencies looking to find digital channels for their audiences are not just CTV or retail media

One of our other top priorities for the AGP is imving our performance advertising by better leveraging our own first-party data and AI machine learning platform on our demand-side platform, or DSP

On the supply side, our consolidated exchange we brand as DTX, continues to return to growth as having focused on managing one versus multiple exchanges is paying dividends

The legacy fiber and ad colony exchange es were focused on waterfall bidding with third-party performance DSPs primarily buying gaming advertising inside gaming applications

As expected, these DSPs have been executing their own supply path optimization strategies to vertically integrate their demand connected to their own supply

For those companies without a strong mediation foot, it has become largely a commoditized ad gaming space for both iOS and Android

We saw this risk years ago, and that's why we invested in our own brand SDK bidding activities to mitigate that risk

Increase our own first-party data activities on our own network and continue to invest in mediation

These activities are bearing fruit our DTX has returned to growth

We've also been able to expand our AGP supply from being largely dependent on game publishers to much more diversified over non-gaming

To illustrate this point, our DTX revenues on non-gaming applications have nearly doubled over the past year

Turning to the future, our focus is continuing to build on our growth while building increased efficiency in our work

The keys to driving growth are more devices, imved performance from our legacy and new ducts, and a wider and deeper net of media and brand relationships

The key to efficiency is automation, aligning operating costs to gross fit, realigning our people, cess, and systems for maximum benefit

We've been able to realize significant efficiencies in our transformation cost savings but we still have more opportunities to add this fiscal year as we use AI to automate and simplify our operational cesses and organizational structures and leverage our nology and system investments for greater efficiencies

To drive faster growth, the first driver is expanding our device foot

Despite the soft device sales here in the U

With our legacy partners, I'm pleased to announce that T-Mobile is now with us in the U

Internationally, we continue to grow with more and deeper relationships with our international partners in Europe, Asia, and Latin America

Our second growth driver is expanding our duct portfolio for both our ODS and AGP es

On the ODS side, the launch of our new version of IGNITE is an important milestone

It enables us to launch more services more quickly to generate revenue, be more efficient with our resources, and most importantly, imve the overall quality of our offerings to our customers and partners

We've also made significant strides in our first-party data leveraging our AI machine learning platform

We've been busy over the past two years, taking our rich data sets and getting the data organized into a scalable, usable, and consistent format in our data lake

We've already seen conversion rate imvements from these efforts and expect this work to be a growth driver for our top and bottom lines this year as we drive better outcomes for publishers, advertisers, and end customers

Our other duct priority is growing and scaling our alternative app efforts

We see alternative apps in a few different dimensions

First is through our alternative store

On many operators, including Verizon, and are working closely with many publishers, including Epic Games, King, and others to help in their distribution to a wider audience

Another way is helping publishers distribute their billing to end customers where we can leverage our on-device foot ducts Single Tap, AppMatch, and so on

Here, we partner with both the app publisher and the payment partners to help them drive more users

We've seen the global regulatory and legal activity against Google and Apple accelerate over the past quarter, not the EU, but in other places such as Brazil, Japan, India, Turkey, and elsewhere as here in the U

Our final growth driver is broader and deeper media relationships

We continue to make positive gress with more brands and performance advertisers

A specific example here is Pinterest, who we've had a nice relationship with on our ODS ducts for many years, but recently expanded our relationship to include Single Tap licensing

We're also seeing new emerge, such as the large AI model players trying to imve their distribution foots

We've recently launched with one of them and see this as an interesting growth area

In conclusion, I want to give our team at Digital Turbine a shout-out

Due to their hard work and focus, we've regained busy momentum and growth

Building on our momentum and growing our top and bottom lines remains a top priority of the company

We're confident we have the right strategy, partners, market opportunity, commercial models, and ducts to have a very bright future

Being in the right space at the right time is critical for any nology company

With that, I'll turn it over to Steve to take you through the numbers

Stephen Lasher: Thanks, Bill

Good afternoon, everyone

It's been a privilege to meet several of you during my time so far as CFO of Digital Turbine

I look forward to engaging with many more of you in the near future as we continue building value together

Before we get into the results, I want to briefly reflect on my three months as CFO at Digital Turbine

I spent this time focused on strengthening financial execution, imving cash flow visibility, tightening working capital management, and aligning more closely with our and duct teams to support smarter, more efficient growth

The fiscal fourth quarter marked a true inflection point for the company