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Digital Turbine (APPS) Reports FQ3 2026 Revenue Growth of 12% to $151.4M

Digital Turbine Inc. (NASDAQ:APPS) is one of the most undervalued penny stocks to buy right now. On February 3, Digital Turbine reported FQ3 2026 earnings, reporting a 12% year-over-year revenue increase to $151.4 million. The company’s international business was a primary catalyst, surging over 60% compared to the previous year. Profitability saw a significant boost as EBITDA grew by 76% year-over-year, with margins expanding to 26%.

Despite the strong international momentum, the company continues to navigate persistent softness in US device volumes and intense competitive pressure within the gaming and app distribution sectors. Financial constraints were also evident in the relatively low free cash flow of $6.4 million for the quarter and the termination of the company’s at-the-market equity program, which may signal a more cautious approach to capital management.

The CEO highlighted the successful integration of AI and ML, which has driven a 25% increase in gross profit dollars while simultaneously reducing operating expenses. Digital Turbine Inc. (NASDAQ:APPS) also confirmed that the three largest global gaming companies are now live using its Single Tap technology to streamline app distribution and reduce friction for users.

Digital Turbine Inc. (NASDAQ:APPS), through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device OEMs. It operates through two segments: On Device Solutions and App Growth Platform.

While we acknowledge the potential of APPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APPS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Most Profitable Undervalued Stocks to Buy and 11 Best Mining Stocks to Buy According to Wall Street.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

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