Whoa, okay, so here’s a little dive into the whirlwind that is Digital Turbine. It’s like this backstage wizard in Austin, Texas, making sure your phone knows what apps you want before you even do—sounds slightly spooky, if you ask me, but hey, someone’s gotta do it. They’ve got this gig where they’re mingling with phone folks, app creators, and the ad world. All to bring you the good stuff on your screen, while everyone else gets richer. Nice, right? Or is it?
The stock? Oh, that’s been a bit of a rollercoaster. Picture those wild rides at an amusement park—ups and then sudden drops where you just hope you don’t lose your lunch. Like, early 2025 was a wild time—things shot up, then real quick, fell off a cliff. It had reached a high this week, then decided to nosedive again just to keep us all on our toes.
So, in Q4 of fiscal 2025—think way back to pre-March 31—revenue is up 6% compared to last year, sitting pretty at $119.2 million. A big number, I guess, if you’re into that. Over the whole year? $490.5 million. A bit like Monopoly money, right? Anyway, they’ve had losses—$18.8 million in the fourth quarter, but that’s better than their last year’s disaster. At least things are looking a bit sunnier with their adjusted earnings—those sprouted up a neat 66% to $20.5 million. Pretty sure that’s a good thing.
Now, cash flow…oh boy. It’s been a bit of a leaky ship with three cash-burning quarters out of four. Basically, they’re spending more than they’re making. Not fabulous if you’re hoping for a strong future.
For those investment nerds—The Value Meter has this crazy math thing called the EV/NAV ratio. It’s at 5.20, which they say is decent compared to others, making you feel like you’re paying less for their goodies. But, don’t pop that champagne yet—the free cash flow-to-net assets ratio is a negative swamp at -3.96%. Looks better than the -5.70% peers, but it screams “cash bonfire!” to me.
What’s the takeaway? The assets seem like a bargain, yet they just can’t seem to turn that into actual cash. Like having a fancy coffee machine that doesn’t brew. Anyway, those revenue bumps and earnings are nice and all, but that free cash flow problem? It’s like having a leaky wallet.
Digital Turbine’s current stamp? “Slightly Overvalued”—yup, that’s the label. Which other stock should be thrown into this chaotic measure next? Toss those ticker symbols my way, and we’ll see where they land.
