Free cash flow generation remains erratic, highlighted by a $22.5 million working capital outflow in 2026Q4 that contributed to a negative free cash flow margin of 0.6%.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 41.8M | 11.88M | 11.88M | 28.68M | 113.38M | 62.8M | 31.38M | 1.27M | 6.97M | -6.66M | -7.07M | -14.5M | -7.81M | -6.87M | -1.83M | -1.91M | -3.47M | -5.36M | -819.62K | -418.13K | -96.63K | 339K | -171K |
| Operating CF Margin % | 7.4% | 2.42% | 2.18% | 4.31% | 15.17% | 8.4% | 22.62% | 1.23% | 9.32% | -7.28% | -8.17% | -51.32% | -31.99% | -113.94% | -25.3% | -20.78% | -24.72% | -17.15% | -25.61% | - | - | 9.04% | -4.26% |
| Operating CF Growth % | 251.89% | 0% | -58.57% | -74.71% | 80.55% | 100.13% | 2372.58% | -81.78% | 204.53% | 5.73% | 51.25% | -85.73% | -13.72% | -275.34% | 4.19% | 44.99% | 35.26% | -553.97% | -96.02% | -332.7% | -128.51% | 298.25% | - |
| Net Income | -37.73M | -92.1M | -92.1M | -420.45M | 16.87M | 54.88M | 14.28M | -4.3M | -19.7M | -19.14M | -24.49M | -24.65M | -18.7M | -14.16M | -30.71M | -9.38M | -42.48M | -41.6M | -2.2M | -553.49K | -171.06K | -504K | -32K |
| Depreciation & Amortization | 71.45M | 82.91M | 82.91M | 83.86M | 81.07M | 7.11M | 2.34M | 2.77M | 2.66M | 2.61M | 7.87M | 2.11M | 1.86M | 646K | 429K | 638K | 1.61M | 1.52M | 0 | 0 | 0 | 406K | 1.07M |
| Stock-Based Compensation | 16.36M | 33.54M | 33.54M | 33.76M | 30.4M | 0 | 3.35M | 2.53M | 2.98M | 3.76M | 5.96M | 6.34M | 4.69M | 3.57M | 7.3M | 2.38M | 1.69M | 2.96M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -654K | -4.05M | -4.05M | 6.9M | -6.04M | -12.95M | 40K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 30.75M | 6.78M | 6.78M | 342.5M | 8.8M | 7.65M | 7.29M | 3.41M | 13.25M | 6.28M | 5.27M | 111K | 3.6M | 3.2M | 19.19M | 2.51M | 38.79M | 31.79M | 1.04M | 111.08K | 0 | 603K | -300K |
| Working Capital Changes | -38.37M | -15.2M | -15.2M | -17.9M | -17.73M | 6.1M | 4.07M | -3.14M | 7.78M | -170K | -1.68M | 1.59M | 746K | -116K | 1.96M | 1.95M | -3.08M | -23K | 348.64K | 24.27K | 74.42K | -166K | -910K |
| Change in Receivables | -70.19M | 2.25M | 2.25M | -23.61M | 95.8M | -25.38M | -2.43M | -6.04M | -7.07M | -3.88M | -5.1M | -406K | -734K | -260K | 1.52M | 3.3M | 38K | 4.49M | 0 | 0 | 0 | 0 | -6K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -7.18M | -19.34M | -19.34M | 40.19M | -48.83M | -1.9M | 16.17M | -4.98M | 8.11M | 4.43M | 3.38M | -379K | -893K | 513K | 637K | -497K | -3.85M | -3.13M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -30.62M | -27.48M | -27.48M | -43.85M | -35.06M | -37.81M | -46.72M | -2.31M | -2.13M | -596K | -674K | -878K | -981K | -3.37M | -17K | -1.64M | -433K | -3.77M | -141.26K | 0 | 0 | -199K | -351K |
| Capital Expenditures | -30.62M | -27.48M | -27.48M | -24.28M | -23.86M | -9.2M | -4.84M | -2.31M | -1.99M | -1.42M | -1.55M | -67K | -207K | -12K | -17K | -88K | -433K | -219K | 0 | 0 | 0 | -199K | -12K |
| CapEx % of Revenue | 5.42% | 5.6% | 5.05% | 3.65% | 3.19% | 1.23% | 3.49% | 2.23% | 2.66% | 1.55% | 1.79% | 0.24% | 0.85% | 0.2% | 0.24% | 0.96% | 3.08% | 0.7% | - | - | - | 5.31% | 0.3% |
| Acquisitions | 0 | 0 | 0 | -19.57M | -11.21M | -28.6M | -41.87M | 0 | 0 | 0 | 0 | 1.36M | -774K | -3.36M | 0 | -906K | 0 | -2.75M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -142K | -177K | 0 | -2.17M | 0 | 0 | 0 | -641K | 0 | -802K | -141.26K | 0 | 0 | 0 | -339K |
| Cash from Financing | -10.86M | 23.28M | 23.28M | -29.3M | -128.29M | -15.22M | 26.18M | -916K | 1.74M | 2.63M | 12.08M | 511K | 29.64M | 2.55M | 9.7M | 2.5M | 0 | 4.3M | 2.47M | 6.16M | 100K | 100K | 225K |
| Debt Issued (Net) | -47.31M | 25M | 25M | -27.13M | -123.5M | -5.47M | 20M | -1.65M | 1.4M | 5M | -600K | 0 | -3.66M | 0 | 7M | 2.5M | 0 | 0 | 0 | 0 | 0 | 100K | 225K |
| Equity Issued (Net) | 58.25M | 0 | 0 | 0 | 0 | 7.21M | 0 | 0 | 0 | 0 | 12.63M | 0 | 33.3M | 2.55M | 2.7M | 0 | 0 | 4.35M | 2.47M | 6.16M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -873K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -21.81M | -1.72M | -1.72M | -2.17M | -4.79M | -16.96M | 6.17M | 734K | 341K | -2.37M | 51K | 511K | 0 | 0 | 0 | 0 | 0 | -54K | 0 | 0 | 100K | 0 | 0 |
| Net Change in Cash | -2.12M | 6.48M | 6.48M | -41.95M | -51.6M | 9.46M | 10.6M | -1.99M | 6.57M | -4.75M | 4.16M | -14.74M | 20.66M | -7.65M | 7.95M | -1.05M | -4.04M | -5.01M | 1.51M | 5.74M | 3.37K | 240K | -297K |
| Free Cash Flow | 11.19M | -15.6M | -15.6M | 4.4M | 89.52M | 53.59M | 26.53M | -1.04M | 4.97M | -8.08M | -8.62M | -14.57M | -8.01M | -6.88M | -1.85M | -2M | -3.9M | -5.58M | -819.62K | -418.13K | -96.63K | 140K | -183K |
| FCF Margin % | 1.98% | -3.18% | -2.86% | 0.66% | 11.97% | 7.17% | 19.13% | -1.01% | 6.65% | -8.83% | -9.96% | -51.56% | -32.84% | -114.14% | -25.53% | -21.74% | -27.81% | -17.85% | -25.61% | - | - | 3.73% | -4.56% |
| FCF Growth % | 171.72% | 0% | -454.64% | -95.09% | 67.04% | 101.99% | 2638.95% | -121.01% | 161.54% | 6.22% | 40.84% | -81.77% | -16.53% | -272.54% | 7.56% | 48.83% | 30.04% | -580.69% | -96.02% | -332.7% | -169.02% | 176.5% | - |
| FCF per Share | 0.10 | -0.15 | -0.15 | 0.04 | 0.87 | 0.52 | 0.30 | -0.01 | 0.07 | -0.12 | -0.14 | -0.37 | -0.21 | -0.37 | -0.12 | -0.27 | -0.49 | -0.77 | -0.22 | -0.18 | -0.05 | 0.06 | -0.08 |
| FCF Conversion (FCF/Net Income) | -1.11x | -0.13x | -0.03x | 1.72x | 3.19x | 1.77x | 2.26x | -0.21x | -0.13x | 0.27x | 0.25x | 0.59x | 0.42x | 0.48x | 0.06x | 0.20x | 0.08x | 0.13x | 0.37x | 0.76x | 0.56x | -0.67x | -1.34x |
| Interest Paid | 47.09M | 35.58M | 35.58M | 30.72M | 20.19M | 0 | 101K | 383K | 1.07M | 1.41M | 1.1M | 0 | 0 | 0 | 0 | 1.76M | 3.06M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 26.3M | 7.15M | 7.15M | 1.53M | 5.66M | 0 | 0 | 0 | 0 | 0 | 0 | 2K | 74K | 34K | 119K | 226K | 1.21M | 561K | 0 | 0 | 0 | 0 | 0 |
Carrier dependency and margin volatility
As reported in financial statements, Digital Turbine consistently generates positive operating cash flow despite recurring net losses, with the OCF/NI ratio frequently reflecting a disconnect between GAAP accounting and cash generation, notably reaching a negative 0.50 in 2026Q4 as net losses weighed on the bottom line.
The persistent gap between net income and operating cash flow suggests that non-cash charges, particularly amortization from past acquisitions, are significantly depressing reported earnings. Investors should monitor whether this cash-generative capacity can persist if the company's core monetization segments face further pricing pressure or increased traffic acquisition costs.
Based on the company's reported figures, free cash flow remains highly erratic, oscillating from a peak of $6.4 million in 2026Q3 to a negative $16.2 million in 2025Q2, indicating that the business struggles to maintain consistent cash conversion across its various mobile advertising and distribution segments.
The inability to generate stable free cash flow suggests that the company's capital-intensive nature, combined with fluctuating operational performance, limits its ability to self-fund growth. This volatility warrants further investigation into whether the current cost structure is sufficiently flexible to withstand cyclical downturns in the mobile handset market.
According to recent SEC filings, Digital Turbine maintains a consistent capital expenditure profile, with CapEx/Revenue ratios hovering between 4.9% and 6.5% over the last ten quarters, reflecting the ongoing investment required to maintain its firmware-level integrations and platform infrastructure across diverse mobile carrier and OEM partners.
The steady level of capital expenditure suggests that the company must continuously reinvest in its platform to preserve its competitive moat within the carrier ecosystem. This ongoing commitment to maintenance and growth capex appears to be a structural requirement that limits the company's ability to expand margins during periods of revenue stagnation.
As indicated by quarterly data, working capital changes have been a significant drag on cash flow, with a notable $22.5 million outflow in 2026Q4, suggesting that the timing of collections and payments remains a volatile component of the company's overall cash management strategy and operational efficiency.
The frequent negative working capital adjustments imply that the company may be facing challenges in aligning its cash conversion cycle with its revenue recognition patterns. Investors should monitor whether these outflows represent temporary timing differences or a more permanent deterioration in the efficiency of the company's accounts receivable and payable management.
Based on the provided financial data, stock-based compensation remains a persistent expense, often exceeding $8 million per quarter, which effectively masks the true cash cost of operations and dilutes the potential for shareholders to benefit from the company's underlying cash-generating activities during periods of net loss.
The reliance on stock-based compensation as a significant operational expense suggests that the company is utilizing equity to preserve cash, which may not be sustainable in the long term. This practice warrants further investigation into the company's true cash-based profitability and the potential for future shareholder dilution if these compensation levels remain elevated.
Quick answers to the most common questions about buying APPS stock.
Digital Turbine, Inc. (APPS) generated $41.8M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Digital Turbine, Inc. (APPS) generated $11.2M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Digital Turbine, Inc. (APPS) spent $30.6M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Digital Turbine, Inc. (APPS) spent $0.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.