Digital Turbine, Inc.

Good afternoon and welcome to the Digital Turbine Fiscal 2026 Second Quarter Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead.

Thank you. Good afternoon and welcome to the Digital Turbine Fiscal 2026 Second Quarter Earnings Conference Call. Joining me today on the call to discuss our results are CEO Bill Stone and CFO Steve Lasher. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements. For discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we filed with the Securities and Exchange Commission. Also during this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures, as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now I'd like to turn the call over to our CEO, Mr. Bill Stone.

Thanks, Brian, and thanks, everyone, for joining our call tonight. Our September quarter showcased accelerating business momentum across both our on-device solutions and app growth platform segments. Strong demand for our platform combined with disciplined operational execution, drove top and bottom line results that exceeded expectations. Revenue for the quarter came in at $140.4 million, representing 18% year-over-year growth. We also achieved 78% year-over-year growth in adjusted EBITDA, demonstrating significant operating leverage in our model as we scale. We continue to execute against our strategy of connecting app developers operators, and OEMs in a mobile-first world. The combination of our install base, monetization capabilities, and growing partner network uniquely positions Digital Turbine to capture a meaningful share of the half a trillion dollar market opportunity in front of us. Also in September, we successfully completed our debt refinancing through a new four-year term loan facility, providing additional flexibility and a stronger balance sheet to support growth initiatives. Breaking our results down by segment, our on-device solutions business generated $96 million in revenue, up approximately 17% from the September quarter last year. In particular, it was encouraging to see 10% growth in both global devices and revenue per device year over year, with the bright spot continuing to be our international ODS business, which drove 80% year over year revenue growth. And we also achieved a nice milestone in the quarter, as for the first time in our history, our international revenues exceeded 25% of our total ODS revenues. Our application growth platform business was another bright spot for the quarter and returned to year-over-year growth, posting $45 million in revenue, which was up 20% year-over-year. In particular, I was pleased with the over 40% sequential improvement in our brand business and also double-digit increase in our DTX or SSP business. The hard work we did over the past few years to stay the course and integrate the legacy tech stacks into a common platform is now paying dividends, and we expect the momentum to continue into the future. Three key drivers powered our improved performance this quarter. First was higher advertiser demand, which translated into improved pricing and fill rates, particularly for premium placements on our platform. This strong advertiser demand resulted in over 30% year-over-year growth in revenue per device in both the US and international markets for our device business. The second driver was increased supply. Our global devices grew year-over-year, driven by strong volumes from our international partners. In addition, our AGP supply volumes increased impressions by nearly 30% year-over-year, driven by expansion of our distribution of our SDK footprint, strong performance in our APAC region, and strong increases in non-gaming inventory. And finally, we made meaningful progress on our first-party data and AI machine learning platform, which is setting the foundation for smarter targeting, higher return on ad spend for advertisers, and improved user experiences, all being direct benefits of us leveraging our data. Beyond just near-term execution, we're also making strategic progress positioning Digital Turbine for the future. Our first-party data investments coupled with real-time AI-driven decisioning, are unlocking new levels of precision and scale. These capabilities are becoming even more valuable as advertisers seek alternatives to the closed-wall garden ecosystems and look for transparent, performant ways to engage mobile users. We brand these unique advantages as the DT Ignite Graph, which fuels our AI machine learning platform, and we also brand our AI machine learning platform as DTIQ, Scaling our Ignite graph and DTIQ are one of our top priorities in the business, and we see these capabilities as a major growth driver for our business into the future. We're also seeing increasing brand engagement directly on our platform. We continue to expand the number of brands leveraging our capabilities. Much of this growth comes through traditional media buying agencies, but where we're especially excited is with brands that have brought their media buying in-house and want a direct relationship with Digital Turbine, particularly in the retail and consumer packaged goods categories. In fact, direct brands accounted for 47% of our total brand revenue in the September quarter, which was up from 22% in the prior quarter. This growth reflects the value we deliver through meaningful supply path optimization savings enabled by our extensive SDK footprint and a truly differentiated offering from omnichannel SSPs through our unique on-device scale. Moreover, the macro environment continues to shift in favor of direct distribution and alternative app distribution models. With the combination of our tech enablers, such as IgniteGraph, DTIQ, SingleTap, and dual downloads, which enabled the distribution of application and alternative apps stores directly distributed to devices, And as an example, our use of single tap technology grew 45% sequentially, which is a nice example of helping publishers create a simple user experience to distribute their applications. And adding our ad tech tools on top of these capabilities helps them acquire more users. Regulatory momentum is accelerating in all geographies around the world to offer customer and publisher choice. In other words, our alternative app strategy is simply leveraging our existing technology, capabilities, and strengths for Android and iOS into a new and growing channel of distribution. To wrap up, our growth accelerated in the second quarter. We showed solid year-over-year double-digit growth in both revenue and EBITDA, driven by a healthy mix of disciplined execution, innovation, and favorable industry dynamics. We're building the right foundation through operational discipline and strategic investment to drive sustained, profitable growth. We're excited by the traction we're seeing across the business and confident in our ability to continually deliver value to partners, advertisers, end users, and shareholders. With that, I'll turn it over to Steve to take you through the financials in more detail.