Digital Turbine Faces Challenges as Q4 2025 Ends with Significant Loss

2025-06-17 companies

Austin, Tuesday, 17 June 2025.
Digital Turbine reported a fourth-quarter GAAP net loss, heavily impacted by a $189.5 million noncash goodwill impairment charge. Despite financial struggles, revenue showed a 6% year-over-year growth.

Impact of Goodwill Impairment

The substantial goodwill impairment charge of $189.5 million significantly impacted Digital Turbine’s financial performance, contributing to a GAAP net loss of $18.8 million in the fourth quarter of fiscal 2025. This compares to a much larger net loss of $236.5 million in the same quarter of the previous year, highlighting some improvement in core operations despite the impairment [1][2].

Revenue Growth amidst Challenges

Revenue for the fourth quarter of fiscal 2025 stood at $119.2 million, marking an increase of 6% compared to the fourth quarter of 2024. This growth points to a degree of resilience in Digital Turbine’s business operations, driven by the strategic execution improvements noted by CEO Bill Stone [1][3]. While revenue grew, the company faced ongoing challenges such as intense competition and market evolution within the mobile advertising sector [1][2][4].

Operational Insights and Non-GAAP Performance

Despite the overall GAAP net loss, Digital Turbine’s non-GAAP adjusted net income for the quarter was recorded at $10.8 million, or $0.10 per share, indicating a positive underlying operational performance. The company reported non-GAAP adjusted EBITDA growth of 66% year-over-year, emphasizing management’s focus on cost efficiencies and operational enhancements [1][3][5].

Future Outlook and Market Positioning

Looking ahead, Digital Turbine projects fiscal year 2026 revenue to be in the range of $515 million to $525 million, with a projected non-GAAP adjusted EBITDA ranging between $85 million and $95 million. This optimistic outlook is supported by new partnerships and technological advancements, including a significant collaboration with T-Mobile and exploration into AI integrations, which are expected to enhance their product offerings and market positioning [3][5][6].

Sources

earnings loss Digital Turbine