Digital Turbine Shares Surge 19% on Return to Profitability

The Austin-based company reported a net income of $5.1 million, or 3 cents per share, for the quarter ending in December. This marks a significant turnaround from the $23.1 million loss recorded during the same period last year. On an adjusted basis, excluding one-time items, Digital Turbine delivered earnings of 18 cents per share as revenue climbed 12% to $151.4 million.

Digital Turbine occupies a strategic niche in the mobile ecosystem by pre-installing applications on smartphones for major carriers and manufacturers. The swing to profitability suggests a stabilization in the mobile advertising and software distribution market, which has faced broader industry headwinds over the past year.

Long-Term Growth Targets

Management provided a roadmap for sustained growth, signaling confidence in its ability to scale its carrier and manufacturer partnerships. For fiscal 2026, Digital Turbine set a revenue target ranging between $553 million and $558 million.

Investors reacted bullishly to the financial recovery and the forward-looking guidance. Shares of Digital Turbine rose 19% to $5.90 in premarket activity, reflecting renewed market confidence in the company’s operational efficiency and its role in the global smartphone supply chain.