Digital Turbine Reports Fiscal 2025 Fourth Quarter and Fiscal Year 2025 Financial Results
Fourth Quarter Revenue Totaled $119.2 Million, Representing Year-over-Year Growth of 6%
Fourth Quarter GAAP Net Loss of $18.8 Million and GAAP EPS of ($0.18); Fourth Quarter Non-GAAP Adjusted Net Income(1) of $10.8 Million and Non-GAAP Adjusted EPS(1) of $0.10
Fourth Quarter Non-GAAP Adjusted EBITDA(2) Totaled $20.5 Million, Representing Year-over-Year Growth of 66%
Fiscal Year 2025 Revenue Totaled $490.5 Million; Fiscal Year 2025 GAAP Net Loss of $92.1 Million; Fiscal Year 2025 Non-GAAP Adjusted EBITDA(2) Totaled $72.3 Million
AUSTIN, Texas, June 16, 2025 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal fourth quarter and fiscal year ended March 31, 2025.
Recent Financial Highlights:
-- Fiscal fourth quarter of 2025 revenue totaled $119.2 million,
representing an increase of 6% year-over-year as compared to the fiscal
fourth quarter of 2024. Revenue for the full fiscal year 2025 totaled
$490.5 million.
-- GAAP net loss for the fiscal fourth quarter of 2025 was $18.8 million,
or ($0.18) per share, as compared to GAAP net loss for the fiscal fourth
quarter of 2024 of $236.5 million, or ($2.32) per share. Non-GAAP
adjusted net income(1) for the fiscal fourth quarter of 2025 was $10.8
million, or $0.10 per share, as compared to Non-GAAP adjusted net
income(1) of $12.6 million, or $0.12 per share, in the fiscal fourth
quarter of 2024.
-- GAAP net loss for fiscal 2025 was $92.1 million, or ($0.89) per share,
as compared to GAAP net loss for fiscal 2024 of $420.4 million, or
($4.16) per share. Non-GAAP adjusted net income(1) for fiscal 2025 was
$36.8 million, or $0.35 per share, as compared to Non-GAAP adjusted net
income(1) of $60.3 million, or $0.58 per share, in fiscal 2024.
-- Non-GAAP adjusted EBITDA(2) for the fiscal fourth quarter of 2025 was
$20.5 million, representing an increase of 66% year-over-year as
compared to Non-GAAP adjusted EBITDA(2) of $12.3 million in the fiscal
fourth quarter of 2024. Non-GAAP adjusted EBITDA(2) for fiscal 2025 was
$72.3 million, as compared to Non-GAAP adjusted EBITDA(2) of $92.4
million in fiscal 2024.
-- Non-GAAP free cash flow(3) totaled $5.5 million in the fiscal fourth
quarter of 2025.
"I am extremely proud of the improved execution by our team over the past year," said Bill Stone, CEO. "These improvements are now paying dividends, as we had solid year-over-year growth on both the top and bottom lines, including EBITDA growth of 66% in our fiscal fourth quarter. The combination of strong advertiser and partner demand, along with profit margin expansion stemming from our transformation program, is enabling us to issue guidance today for continued top- and bottom-line growth in fiscal 2026. More strategically, meaningful progress on our abilities to effectively utilize AI and Machine Learning in order to optimize the value of our first-party data, and the emergence of new opportunities for Alternative Apps distribution, have us feeling optimistic that we can continue to build on our current momentum."
Fiscal 2025 Fourth Quarter Financial Results
Total revenue for the fourth quarter of fiscal 2025 was $119.2 million, representing year-over-year growth of 6% as compared to revenue of $112.2 million for the fourth quarter of fiscal 2024. Total On Device Solutions revenue before intercompany eliminations was $86.8 million. Total App Growth Platform revenue before intercompany eliminations was $33.3 million.
GAAP net loss for the fourth quarter of fiscal 2025 was $18.8 million, or ($0.18) per share, as compared to GAAP net loss for the fourth quarter of fiscal 2024 of $236.5 million, or ($2.32) per share. GAAP net loss for the fourth quarter of fiscal 2024 included a noncash goodwill impairment charge of $189.5 million.
Non-GAAP adjusted net income(1) for the fourth quarter of fiscal 2025 was $10.8 million, or $0.10 per share, as compared to Non-GAAP adjusted net income(1) of $12.6 million, or $0.12 per share, in the fourth quarter of fiscal 2024.
Non-GAAP adjusted EBITDA(2) for the fourth quarter of fiscal 2025 was $20.5 million, representing year-over-year growth of 66% as compared to Non-GAAP adjusted EBITDA(2) for the fourth quarter of fiscal 2024 of $12.3 million.
Full Year Fiscal 2025 Financial Results
Total revenue for fiscal 2025 was $490.5 million. Total On Device Solutions revenue before intercompany eliminations was $341.6 million. Total App Growth Platform revenue before intercompany eliminations was $153.2 million.
GAAP net loss for fiscal 2025 was $92.1 million, or ($0.89) per share, as compared to GAAP net loss for fiscal 2024 of $420.4 million, or ($4.16) per share. GAAP net loss for fiscal 2024 included a noncash goodwill impairment charge of $336.6 million.
Non-GAAP adjusted net income(1) for fiscal 2025 was $36.8 million, or $0.35 per share, as compared to Non-GAAP adjusted net income(1) of $60.3 million, or $0.58 per share, in fiscal 2024.
Non-GAAP adjusted EBITDA(2) for fiscal year 2025 was $72.3 million, as compared to Non-GAAP adjusted EBITDA(2) for fiscal year 2024 of $92.4 million. The reconciliations between GAAP and Non-GAAP financial results for all referenced periods are provided in the tables immediately following the Unaudited Consolidated Statements of Cash Flows below.
Business Outlook
Based on information available as of June 16, 2025, the Company currently expects the following for fiscal year 2026:
-- Revenue of between $515 million and $525 million
-- Non-GAAP adjusted EBITDA(2) of between $85 million and $90 million
It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company's stock price, or other items that are difficult to predict with precision.
About Digital Turbine, Inc.
Digital Turbine empowers superior mobile consumer experiences and results for the world's leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners' abilities to supercharge awareness, acquisition, and monetization - connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com.
Conference Call
Management will host a conference call and webcast today at 4:30 p.m. ET to discuss its fiscal 2025 fourth quarter financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https://app.webinar.net/kz7vAVXol8r. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 8447671. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine's website. The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.
For those unable to join the live call, a playback will be available through June 23rd, 2025. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 7941310.
An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.
Use of Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share ("EPS"), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.
Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management's internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
(1)Non-GAAP adjusted net income and EPS are defined as GAAP net income and EPS adjusted to exclude the effect of stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent considerations, contract settlement fees, impairment of goodwill, and tax adjustments. Readers are cautioned that non-GAAP adjusted net income and EPS should not be construed as an alternative to comparable GAAP net income figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.
(2)Non-GAAP adjusted EBITDA is calculated as GAAP net income excluding the following cash and non-cash expenses: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent considerations, impairment of goodwill, and severance costs. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.
(3)Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.
(4)Non-GAAP gross profit is defined as GAAP income from operations adjusted to exclude the effect of product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, impairment of goodwill and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.
Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company's financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.
Forward-Looking Statements
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:
Risks Specific to our Business
-- We have a history of net losses
-- We have a limited operating history for our current portfolio of assets.
-- Growth may place significant demands on our management and our
infrastructure.
-- Our operations are global in scope, and we face added business,
political, regulatory, legal, operational, financial and economic risks
as a result of our international operations.
-- Our financial results could vary significantly from quarter-to-quarter
and are difficult to predict.
-- A significant portion of our revenue is derived from a limited number of
wireless carriers and customers.
-- The risk of impairment of our goodwill.
-- The effects of the current and any future general downturns in the U.S.
and the global economy, including financial market disruptions.
-- Our products, services and systems rely on software that is highly
technical, and if it contains errors or viruses, our business could be
adversely affected.
-- Our business may involve the use, transmission and storage of
confidential information and personally identifiable information, and
the failure to properly safeguard such information could result in
significant reputational harm and monetary damages.
-- Our business and reputation could be impacted by information technology
system failures and network disruptions
-- System security risks and cyber-attacks could disrupt our internal
operations or information technology services provided to customers.
-- Our business and growth may suffer if we are unable to hire and retain
key talent.
-- If we are unable to maintain our corporate culture, our business could
be harmed.
-- Our transformation activities and reduction in force may not adequately
reduce our operating costs or improve our operating margins or cash
flows, may lead to additional workforce attrition and may cause
operational disruptions.
-- If we make future acquisitions, this could require significant
management attention and disrupt our business.
-- Adverse effects of negative developments affecting the financial
services industry, including events or concerns involving liquidity,
defaults, or non-performance by financial institutions.
-- Entry into new lines of business, and our offering of new products and
services, resulting from our investments may result in exposure to new
risks.
-- Litigation may harm out business.
Risks Related to the Mobile Advertising Industry
-- The mobile advertising business is an intensely competitive industry,
and we may not be able to compete successfully.
-- The markets for our products and services are rapidly evolving and may
decline or experience limited growth.
-- Our business is dependent on the continued growth in usage of
smartphones and other mobile connected devices.
-- Wireless technologies are changing rapidly, and we may not be successful
in working with these new technologies.
-- The complexity of and incompatibilities among mobile devices may require
us to use additional resources for the development of our products and
services.
-- If wireless subscribers do not continue to use their mobile devices to
access mobile content and other applications, our business growth and
future revenue may be adversely affected.
-- A shift of technology platform by wireless carriers and mobile device
manufacturers could lengthen the development period for our offerings,
increase our costs, and cause our offerings to be published later than
anticipated.
-- Actual or perceived security vulnerabilities in devices or wireless
networks could adversely affect our revenue.
-- We may be subject to legal liability associated with providing mobile
and online services.
-- Risks of public health issues, such as a major epidemic or pandemic.
-- Risk related to geopolitical conditions and the global economy,
including conflicts, financial markets, and inflation.
-- Risk related to the geopolitical relationship between the U.S. and China
or changes in China's economic and regulatory landscape.
Industry Regulatory Risks
-- We are subject to rapidly changing and increasingly stringent laws,
regulations and contractual requirements related to privacy, data
security, and protection of children.
-- We are subject to anti-corruption, import/export, government sanction,
and similar laws, especially related to our international operations.
-- Government regulation of our marketing methods could restrict or prevent
our ability to adequately advertise and promote our content, products
and services available in certain jurisdictions.
-- Limitations may negatively affect our ability to use our net operating
losses, credits, and certain other tax attributes to offset future
taxable income.
-- Regulatory requirements pertaining to the marketing, advertising, and
promotion of our products and services.
-- Governmental regulation of our marketing methods.
Risks Related to Our Intellectual Property and Potential Liability
-- Third parties may obtain and improperly use our intellectual property;
and if so, our competitive position may be adversely affected,
particularly if we do not, or are unable to, adequately protect our
intellectual property rights
-- Third parties may sue us for intellectual property infringement, which
may prevent or limit our use of the intellectual property and disrupt
our business and could require us to pay significant damage awards.
-- Our platform contains open source software.
-- Indemnity provisions in various agreements potentially expose us to
substantial liability for intellectual property infringement, damages
caused by malicious software, and other losses.
Risks Relating to Our Common Stock and Capital Structure
-- We have secured and unsecured indebtedness, which could limit our
financial flexibility.
-- To service our debt and fund our other obligations and capital
requirements, we will require a significant amount of cash, and our
ability to generate cash will depend on many factors beyond our control.
-- The market price of our common stock is likely to be highly volatile and
subject to wide fluctuations, and you may be unable to resell your
shares at or above the current price or the price at which you purchased
your shares.
-- Risk of not being able to raise capital to grow our business.
-- Risk to trading volume of lack of securities or industry analysts
research coverage.
-- A material weakness in our internal control over financial reporting and
disclosure controls and procedures could, if not remediated, result in
material misstatements in our financial statements.
-- Maintaining and improvising financial controls and being a public
company may strain resources.
-- Anti-takeover provisions in our charter documents could make an
acquisition of our company more difficult.
-- Our bylaws designate Delaware as the exclusive forum for certain
disputes.
-- Other risks described in the risk factors in Item 1A of our latest
Annual Report on Form 10-K under the heading "Risk Factors" and
subsequent Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission.
You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact:
Brian Bartholomew
Digital Turbine, Inc.
brian.bartholomew@digitalturbine.com
Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income
(Unaudited)
(in thousands, except share and per share amounts)
Three months ended March
31, Year ended March 31,
2025 2024 2025 2024
Net revenue $119,152 $112,223 $490,506 $544,482
Costs of revenue and operating expenses
Revenue share 53,195 53,551 235,287 262,226
Other direct costs of revenue 9,359 7,555 34,541 34,799
Product development 9,114 11,284 39,464 54,157
Sales and marketing 14,014 15,935 61,642 61,481
General and administrative 45,162 42,278 173,647 169,617
Impairment of goodwill 189,459 336,640
Total costs of revenue and operating expenses 130,844 320,062 544,581 918,920
(Loss) income from operations (11,692) (207,839) (54,075) (374,438)
Interest and other income (expense), net
Change in fair value of contingent consideration (300) 372
Interest expense, net (8,855) (7,938) (34,783) (30,838)
Foreign exchange transaction gain (loss) 418 (54) 1,297 101
Other expense, net (24) (261) (3) (328)
Total interest and other expense, net (8,461) (8,253) (33,789) (30,693)
(Loss) income before income taxes (20,153) (216,092) (87,864) (405,131)
Income tax provision (1,327) 20,414 4,235 15,317
Net (loss) income (18,826) (236,506) (92,099) (420,448)
Less: net (loss) income attributable to non-controlling interest (220)
Net (loss) income attributable to Digital Turbine, Inc. (18,826) (236,506) (92,099) (420,228)
Other comprehensive income (loss)
Foreign currency translation gain (loss) 826 (2,462) (2,349) (6,271)
Comprehensive income (loss) (18,000) (238,968) (94,448) (426,719)
Less: comprehensive income attributable to non-controlling interest 519
Comprehensive (loss) income attributable to Digital Turbine, Inc. $(18,000) $(238,968) $(94,448) $(427,238)
Net (loss) income per common share
Basic $(0.18) $(2.32) $(0.89) $(4.16)
Diluted $(0.18) $(2.32) $(0.89) $(4.16)
Weighted-average common shares outstanding
Basic 105,427 101,974 103,747 100,975
Diluted 105,427 101,974 103,747 100,975
Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except par value and share amounts)
March 31, 2025 March 31, 2024
(Unaudited)
ASSETS
Current assets
Cash, cash equivalents, and restricted cash $40,084 $33,605
Accounts receivable, net 181,770 191,015
Prepaid expenses 6,923 7,704
Value-added tax receivable 8,291 4,728
Other current assets 5,711 5,289
Total current assets 242,779 242,341
Property and equipment, net 46,966 45,782
Right-of-use assets 9,924 9,127
Intangible assets, net 257,697 313,505
Goodwill 221,741 220,072
Other non-current assets 33,747 34,713
TOTAL ASSETS $812,854 $865,540
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $139,944 $159,200
Accrued revenue share 35,264 33,934
Accrued compensation 7,503 7,209
Acquisition purchase price liabilities 1,697
Other current liabilities 38,118 35,681
Total current liabilities 222,526 236,024
Long-term debt, net of debt issuance costs 408,687 383,490
Deferred tax liabilities, net 16,308 20,424
Other non-current liabilities 11,375 11,670
Total liabilities 658,896 651,608
Commitments and contingencies
Stockholders' equity
Preferred stock
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1) 100 100
Common stock
$0.0001 par value: 200,000,000 shares authorized; 106,735,767 issued and 105,977,642 outstanding at March 31, 2025; 102,877,057 issued and 102,118,932 outstanding at March 31, 2024 10 10
Additional paid-in capital 892,665 858,191
Treasury stock (758,125 shares at March 31, 2025 and March 31, 2024) (71) (71)
Accumulated other comprehensive loss (51,304) (48,955)
Accumulated deficit (687,442) (595,343)
Total stockholders' equity 153,958 213,932
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $812,854 $865,540
Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Three months ended March 31,
2025 2024
Cash flows from operating activities:
Net (loss) income $(18,826) $(236,506)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization 23,126 20,924
Non-cash interest expense 545 (531)
Allowance for credit losses 623 627
Stock-based compensation expense 8,126 6,743
Change in estimate of remaining contingent consideration
Noncash lease expense 788 781
Foreign exchange transaction (gain) loss (418) 54
Impairment of goodwill 189,459
(Increase) decrease in assets:
Accounts receivable, gross 16,847 25,176
Prepaid expenses (18) 2,920
Value-added tax receivable (640) 8,772
Other current assets (423) (8,992)
Right-of-use asset 108 (420)
Other non-current assets 237 (190)
Increase (decrease) in liabilities:
Accounts payable (7,961) 108
Accrued revenue share 927 (32,119)
Accrued compensation (1,081) (111)
Other current liabilities (10,007) (2,628)
Deferred income taxes 1,298 15,909
Other non-current liabilities (1,743) (1,732)
Net cash provided by (used in) operating activities 11,508 (11,756)
Cash flows from investing activities
Equity investments (9,956)
Business acquisitions, net of cash acquired
Capital expenditures (6,944) (6,895)
Net cash used in investing activities (6,944) (16,851)
Cash flows from financing activities
Proceeds from borrowings 25,000
Payment of debt issuance costs
Repayment of debt obligations (15,000)
Payment of withholding taxes for net share settlement of equity awards (234) (110)
Options exercised 270 85
Net cash provided by financing activities 36 9,975
Effect of exchange rate changes on cash and cash equivalents and restricted cash 170 2,772
Net change in cash and cash equivalents and restricted cash 4,770 (15,860)
Cash and cash equivalents and restricted cash, beginning of period 35,314 49,465
Cash and cash equivalents and restricted cash, end of period $40,084 $33,605
REVENUE BY SEGMENT
(in thousands)
(Unaudited)
Three months ended March 31, Year ended March 31,
2025 2024 % Change 2025 2024 % Change
On Device Solutions $86,832 $78,504 11 % $341,632 $370,112 (8) %
App Growth Platform 33,250 34,437 (3) % 153,229 178,760 (14) %
Elimination (930) (718) 30 % (4,355) (4,390) (1) %
Consolidated $119,152 $112,223 6 % $490,506 $544,482 (10) %
GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT
(in thousands)
(Unaudited)
Three months ended March 31, Year ended March 31,
2025 2024 2025 2024
Net revenue $119,152 $112,223 $490,506 $544,482
(Loss) income from operations (11,692) (207,839) (54,075) (374,438)
Add-back items:
Product development 9,114 11,284 39,464 54,157
Sales and marketing 14,014 15,935 61,642 61,481
General and administrative 45,162 42,278 173,647 169,617
Depreciation of software included in other direct costs of revenue 6 208 208 4,045
Contract settlement fees 3,800
Impairment of goodwill 189,459 336,640
Non-GAAP gross profit $56,604 $51,325 $224,686 $251,502
Non-GAAP gross profit percentage 48 % 46 % 46 % 46 %
GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET INCOME
(in thousands)
(Unaudited)
Three months ended March 31, Year ended March 31,
2025 2024 2025 2024
Net (loss) income $(18,826) (236,506) $(92,099) $(420,448)
Add-back items:
Stock-based compensation expense 8,126 6,743 33,543 33,763
Amortization of intangibles 13,429 16,039 55,612 64,321
Change in fair value of contingent consideration 300 (372)
Tax adjustment (1) 7,165 33,817 29,551 33,817
Business transformation costs 84 2,127 2,060 9,418
Transaction-related expenses 152 177 359 338
Severance costs 666 710 3,711 2,795
Contract settlement fees 3,800
Impairment of goodwill 189,459 336,640
Non-GAAP adjusted net income $10,796 $12,566 $36,837 $60,272
Non-GAAP adjusted net income per common share $0.10 $0.12 $0.35 $0.58
Weighted-average common shares outstanding, diluted 108,150 103,451 105,810 103,928
(1) Valuation allowance
GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA
(in thousands)
(Unaudited)
Three months ended March 31, Year ended March 31,
2025 2024 2025 2024
Net (loss) income $(18,826) $(236,506) $(92,099) $(420,448)
Add-back items:
Stock-based compensation expense 8,126 6,743 33,543 33,763
Depreciation and amortization 23,126 20,924 82,910 83,858
Interest expense, net 8,855 7,938 34,783 30,838
Other expense, net 24 261 3 328
Change in fair value of contingent consideration 300 (372)
Business transformation costs 84 2,127 2,060 9,418
Foreign exchange transaction (gain) loss (418) 54 (1,297) (101)
Income tax provision (1,327) 20,414 4,235 15,317
Transaction-related expenses 152 177 359 338
Severance costs 666 710 3,711 2,795
Contract settlement fees 3,800
Impairment of goodwill 189,459 336,640
Non-GAAP adjusted EBITDA $20,462 $12,301 $72,308 $92,374
GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
(in thousands)
(Unaudited)
Three months ended March 31,
2025 2024
Net cash provided by (used in) operating activities $11,508 $(11,756)
Capital expenditures (6,944) (6,895)
Transaction-related expenses 152 177
Severance costs 666 710
Business transformation costs 84 2,127
Non-GAAP free cash flow provided (used) by operations $5,466 $(15,637)
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SOURCE Digital Turbine, Inc.
