New York, Feb 4, 2026, 05:29 EST — Premarket
- Shares of Digital Turbine jumped roughly 20% in premarket action following its quarterly earnings and an upgraded full-year outlook
- Revenue rose 12% in the December quarter, pushing the company into a GAAP profit
- Attention shifts to March-quarter demand indicators and if the rally sticks at the open
Digital Turbine’s shares jumped roughly 20% to $5.93 in premarket action Wednesday. The surge came after the company lifted its full-year revenue and profit forecasts in the wake of its December-quarter report. (Public)
The jump matters since Digital Turbine is a small-cap mobile ad-tech player working to restore its growth and cash flow credibility. When guidance changes, the stock usually gaps immediately, then finds its footing afterward.
Investors are keeping an eye on a wider shakeup in app-install advertising and on-device distribution, where budgets shift quickly and competition heats up. The higher forecast seems less about costs and more like a clear sign of growing demand.
Digital Turbine reported fiscal third-quarter revenue of $151.4 million late Tuesday, marking a 12% increase year-over-year. The company posted GAAP net income of $5.1 million, or $0.03 per share. It also raised its fiscal 2026 revenue forecast to between $553 million and $558 million, with a non-GAAP adjusted EBITDA projection of $114 million to $117 million. CEO Bill Stone described the quarter as demonstrating “positive business momentum.” (SEC)
Adjusted EBITDA excludes interest, taxes, and depreciation, serving as a common gauge of core operating performance. Traders focus on the reconciliation between GAAP and non-GAAP figures, watching closely to see if better results translate into actual cash flow.
During the earnings call, CFO Stephen Lasher revealed total debt dropped over $41 million to $355 million in the quarter. The company also wrapped up its at-the-market share sale program, having sold 6.8 million shares at an average price of $6.54. “We made the decision to terminate our existing at-the-market equity program,” he stated. (The Motley Fool)
Stone focused on product and distribution, telling analysts a “flywheel” between app-install demand and in-app ads could fuel growth—provided the platform remains integrated. He added that three major mobile game developers signed in December are already using the company’s SingleTap tool, which enables one-click installs, for alternative distribution and “dual downloads” linked to app stores beyond the main channels.
Digital Turbine operates alongside bigger mobile ad-tech firms like AppLovin, battling for performance ad dollars that fluctuate with app-store policies and privacy shifts. Analysts pressed management during the call about evolving competition on iOS and in gaming. Stone responded that the company is gaining share while the market expands at a mid- to high-single-digit rate.
The downside is straightforward. In its most recent quarterly report, Digital Turbine cautioned that both secured and unsecured debt could restrict its financial flexibility. Loan terms and covenants might tighten if operating conditions worsen. The filing also highlights risks tied to industry and economic changes that could dampen ad demand. (Digital Turbine, Inc.)
Wednesday’s key test: will the premarket surge hold up through the initial liquidity flush, or will it fade as spreads narrow and more traders jump in? Keep an eye on early volume and any broker notes scrutinizing the boosted forecast against March-quarter data.
