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Digital Turbine Shares Plunge 18% on Weaker-Than-Expected Earnings
6 Aug
Summary
- Digital Turbine's Q1 earnings miss Wall Street estimates
- Company raises full-year revenue guidance, but margins disappoint
- Investors concerned about profitability despite sales growth
On August 6th, 2025, digital marketing company Digital Turbine saw its stock price plummet by 18% following the release of its latest earnings report. The company, which is listed on the NASDAQ exchange, published its results for the first quarter of its current fiscal year, which ended on June 30th.
Despite raising its full-year sales outlook, Digital Turbine's stock is falling due to investor concerns about the company's profitability. In the first quarter, the firm recorded non-GAAP (adjusted) earnings per share of $0.05 on revenue of $130.92 million. While sales for the period beat the average Wall Street analyst estimate by around $9 million, the company's earnings per share came in $0.03 lower than the target.
Although Digital Turbine's sales were up roughly 9% year over year and were strong enough to prompt the digital marketing specialist to issue a significant increase for its full-year revenue outlook, weaker-than-anticipated margins are causing investors to sell out of the stock. The company is now guiding for full-year revenue to come in between $525 million and $535 million, up from its previous guidance of $515 million to $525 million.
