Digital Turbine

APPS

Software - Application · Technology

Price

$8.34

-0.29 (-3.42%)

Market Cap

$1.01B

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+10.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 102.6M (2022) → 112.9M (2026)

Digital Turbine helps app developers and advertisers get their apps onto smartphones. The company works with mobile carriers and device makers — like AT&T and major Android phone brands — to pre-install or automatically deliver apps to users when they set up a new phone. It sits in the middle of the mobile app distribution industry, connecting advertisers who want users with carriers and manufacturers who control the devices.

The company makes money by charging advertisers and app developers fees each time an app is delivered or installed through its platform. It operates mainly in the United States but has expanded internationally through acquisitions, including ad-tech companies that broadened its reach into mobile advertising. Digital Turbine's main advantage is its direct relationships with carriers and device makers, which gives it a built-in distribution channel competitors cannot easily replicate. However, the business depends heavily on Android device volumes and advertiser spending, meaning an ad market slowdown or a shift in carrier partnerships could meaningfully hurt revenue.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-11.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+18.2% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$40M/ year

→ Flat (+3% vs prior year)

7.2% of revenue

Below sector average (15%)

Steady R&D investment year-over-year

Insider Activity

11.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$40M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Digital Turbine's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

47.5%

Healthy — 47.5% gross margin

Operating Margin

-9.8%

Losing money on operations — -9.8%

ROCE

-2.1%

Weak — -2.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+5.2%

Slow sales growth (5.2% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

3.1%

Thin free cash flow (3.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

2.68

Heavy debt load (2.68)

Interest Cover

0.01x

Dangerous — barely covers interest (0.0x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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