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DATE
Monday, June 16, 2025 at 4:30 p.m. ET
CALL PARTICIPANTS
Chief Executive Officer — Bill Stone
Chief Financial Officer — Stephen Lasher
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TAKEAWAYS
Revenue: $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 improved 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 product mix improvements in On Device Solutions and disciplined cost controls.
Cash Operating Expenses: $36.1 million in cash operating expenses in March, highlighting progress on expense management and automation.
GAAP Net Loss: $18.8 million GAAP net loss for Q4 FY2025, or $0.18 per share for the quarter.
Non-GAAP Net Income: $10.1 million non-GAAP net income for Q4 FY2025, or $0.10 per share 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.S. and over 100% RPD growth year-over-year internationally.
AGP Segment Revenue: $30 million in revenue, representing a 3% decrease year-over-year
IGNITE Platform Reach: The new version of IGNITE is now on more than 100 million devices, enabling faster service launches and improved offerings.
AI and Data Initiatives: The platform now ingests over 1,000 dimensions and 1,500 unique data events, supporting advanced machine learning and improved conversion rates.
DTX Exchange Growth: DTX exchange growth was driven by diversification.
Fiscal 2026 Outlook: Projected revenue of $515 million to $525 million for FY2026 and non-GAAP adjusted EBITDA of $85 million to $95 million for FY2026.
SUMMARY
Management 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 progress 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 live 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 business continues to build on that momentum, and our current June (Q1 FY2026) is trending positively” expressing expectations for further improvements 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 progress 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 GLOSSARY
ODS (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 business 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 proprietary platform deployed on devices to enable app installation, user engagement, and monetization features for OEMs and partners.
Full Conference Call Transcript
Bill Stone: Thanks, Brian, and thank you all for joining our call tonight. Before breaking down our specific operating results and commentary, I wanted to provide three important updates. First, our business 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 improved execution and actions are now bearing fruit. Secondly, the business continues to build on that momentum. Our current June is trending positively and we expect to show improved performance both sequentially and year-over-year. And finally, we extended our credit facility with our bank group.
We believe this extension combined with our improved execution provides 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 share. 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 progress on managing and leveraging our first-party data into our AI machine learning platform, our launch of new improved bidding capabilities, and many back-end corporate systems that are simplifying and automating our work.
All of these things are helping drive improved performance in the present and into the future. For the March, on the on-device or ODS business, we showed double-digit year-on-year top-line growth. Devices on our legacy U.S. partners declined year-over-year but were offset by new device launches from outside the U.S. The real highlight of our ODS growth was due to improved revenue per device, or RPD. Our RPDs were up more than 40% year-over-year in the U.S. and over 100% internationally year-over-year. This was driven by strong advertiser demand and improved monetization over the right foot device.
As we’ve discussed on prior calls, the opportunity for organic growth with improved international revenue per device has been a focus area for us and I was really pleased to see us build upon our improved execution from the December. Our AGP business 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 business is improving 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 businesses 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 footprint, it has become largely a commoditized ad tech 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 business 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, improved performance from our legacy and new products, and a wider and deeper net of media and brand relationships. The key to efficiency is automation, aligning operating costs to gross profit, realigning our people, process, 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 processes and organizational structures and leverage our technology and system investments for greater efficiencies. To drive faster growth, the first driver is expanding our device footprint. Despite the soft device sales here in the U.S. with our legacy partners, I’m pleased to announce that T-Mobile is now live with us in the U.S. on Ignite. 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 product portfolio for both our ODS and AGP businesses. 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, improve 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.Source link
