Image source: The Motley Fool. DATEMonday, June 16, 2025 at 4:30 p. ETCALL PARTICIPANTSChief Executive Officer — Bill StoneChief Financial Officer — Stephen LasherNeed a quote from one of our analysts.
[ tected]TAKEAWAYSRevenue: $119.
2 million in revenue for Q4 FY2025, up 6% year-over-year compared to Q4 fiscal year 2024 driven by double-digit year-over-year growth in the On Device Solutions segment and partially offset by a 3% decline in the App Growth Platform segment.
Adjusted EBITDA: $20. 5 million in adjusted EBITDA for Q4 FY2025, representing 66% year-over-year growth in the fiscal fourth quarter due to both imved execution and cost-saving initiatives.
Free Cash Flow: $5. 5 million in free cash flow in March, an increase of over $21 million compared to the prior-year period.
Non-GAAP Gross Margin: 48%, up from 46% in the prior-year period, primarily from duct mix imvements in On Device Solutions and disciplined cost controls. Cash Operating Expenses: $36.
1 million in cash operating expenses in March, highlighting gress on expense management and automation. GAAP Net Loss: $18. 8 million GAAP net loss for Q4 FY2025, or $0. 18 per for the quarter.
Non-GAAP Net Income: $10. 1 million non-GAAP net income for Q4 FY2025, or $0. 10 per in the fiscal fourth quarter on a non-GAAP basis. Cash Balance: $40.
1 million in cash at the end of the quarter, up $5 million from the December quarter. Debt Balance: $408. 7 million in debt at Q4 FY2025 quarter-end with no new borrowings during the period.
Credit Facility Extension: Management reported closing a short-term extension of the credit facility and is seeking a more permanent debt solution.
On Device Solutions (ODS) Segment Performance: ODS revenue increased 11% year-over-year, driven by more than 40% RPD growth year-over-year in the U.
And over 100% RPD growth year-over-year internationally.
AGP Segment Revenue: $30 million in revenue, representing a 3% decrease year-over-yearIGNITE Platform Reach: The new version of IGNITE is now on more than 100 million devices, enabling faster service launches and imved offerings.
AI and Data Initiatives: The platform now ingests over 1,000 dimensions and 1,500 unique data events, supporting advanced machine learning and imved conversion rates.
DTX Exchange Growth: DTX exchange growth was driven by diversification.
Fiscal 2026 Outlook: jected revenue of $515 million to $525 million for FY2026 and non-GAAP adjusted EBITDA of $85 million to $95 million for FY2026.
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.
Not only did our top line grow from March of this year, compared to March of last year, but our year-over-year EBITDA grew by 66%. 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.
To move to our fiscal '25 results, we achieved $119. 1 million of revenue, $20. 5 million of EBITDA, and $0. 10 of non-GAAP earnings per.
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.
Our RPDs were up more than 40% year-over-year in the U. And over 100% internationally year-over-year. 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.
Our AGP generated $30 million in revenue in the quarter.
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's now on over 100 million devices.
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.
With that work largely complete, ingesting over 1,000 different dimensions and more than 1,500 unique data events by which we now can build our sophisticated AI machine learning models upon.
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. We're here in the U.
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.
Specifically, many of you may have seen the announcement of 40 million installs of their alternative store where we are a major partner with them leveraging our ducts such as single tap dynamic installs and others.
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.
Importantly, we continue to make gress on our capital structure and adding stability as we move into fiscal year 2026.
Now turning to our performance in the fiscal fourth quarter and full year fiscal 2025. The fiscal fourth quarter marked a true inflection point for the company.
As we return to year-over-year growth for both revenue and adjusted EBITDA during the quarter, revenue of $119. 2 million represented 6% growth year-over-year.
At a segment level, revenue for our ODS segment was up 11% year-over-year, while our revenue for the AGP segment was down 3% year-over-year.
The combination of renewed top-line growth and the realization of expense savings via the enactment of our transformation gram in late calendar 2025 led to more significant gains in EBITDA and free cash flow during the quarter.
Our fiscal.