Digital Turbine (NASDAQ:APPS) has rallied nearly 72% today after it reported strong fiscal Q3 2025 results and raised its guidance. The stock was already recovering before that, but the recent surge has made it one of the trendiest stocks in the market. Here’s what you need to know:
Digital Turbine reported a non-GAAP adjusted net income of $13.7 million. This trounced analyst expectations of a $0.01 loss and marked a 1,055.88% increase year-over-year. Revenue also increased 13% sequentially to $134.6 million, though it is down 6% year-over-year.
Adjusted EBITDA increased 44% sequentially to $22 million. But again, it is down 13% vs. the prior-year quarter. Wall Street is very bullish since this is a significant turnaround in just one quarter, with its App Growth Platform seeing 17% sequential growth, along with $15 million in savings from its transformation program.
Digital Turbine hiked its full-year revenue outlook to $485 million to $490 million. This is up from $475 million to $485 million and surpassed consensus estimates of $477 million. Adjusted EBITDA guidance was also raised to $69 million to $71 million.
For Q4 2025, management expects 50% EBITDA growth along with positive year-over-year sales growth.
APPS stock currently has a consensus price target of $2.38. However, this is pretty outdated due to what has happened recently and analysts will likely upgrade the stock and raise their price targets in the coming days.
One quarter’s report likely won’t be enough to make most analysts bullish. A lot of the earnings have already been priced into the stock, so it is likely that APPS stock will retain a “Hold” rating from most analysts.
