MeritValue

Digital Turbine, Inc.

APPSdata completeness 100%16 fiscal years on file
The thesis, from the filings

Digital Turbine, Inc. earns about -6% on invested capital, but has diluted owners by 10% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$747.6M1$665.9M2$544.5M3$490.5M3$565.3M3
Net income$35.5M4$16.7M5−$420.2M6−$92.1M6−$37.7M6
Operating cash flow$84.7M7$113.4M8$28.7M9$11.9M9$41.8M9
Capital expenditure——$24.3M10$27.5M10$30.6M10
Free cash flow (derived)——$4.4M9−$15.6M9$11.2M9
Total debt$1.07B11$821M12$767M13$817.4M14$721.9M14
Cash & equivalents$126.8M15$75.1M16$32.9M17$39.4M17$37.7M17
Diluted shares102.6M101.8M101.0M103.7M112.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$17.02
your share of equity
Profit it earned you last year
−$3.34
Free cash flow it threw off
$0.99
Debt you’d be carrying
$63.93

10 shares is a claim on $17.02 of net worth that earned you −$3.34 and generated $0.99 of cash last year, against $63.93 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-6% avg · 5y
FY22 3%FY23 3%FY24 -31%FY25 -4%FY26 2%

It earned an average -6% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 32% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$4.4M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$4.4M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0001628280-24-025455 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-03-31 · accession 0001628280-25-031628 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-03-31 · accession 0001628280-26-038115 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-03-31 · accession 0001628280-24-025455 (NetIncomeLoss)
  5. 10-K · period ending 2023-03-31 · accession 0001628280-25-031628 (NetIncomeLoss)
  6. 10-K · period ending 2024-03-31 · accession 0001628280-26-038115 (NetIncomeLoss)
  7. 10-K · period ending 2022-03-31 · accession 0001628280-24-025455 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-03-31 · accession 0001628280-25-031628 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-03-31 · accession 0001628280-26-038115 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2024-03-31 · accession 0001628280-26-038115 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-03-31 · accession 0001628280-23-019814 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2023-03-31 · accession 0001628280-24-025455 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2024-03-31 · accession 0001628280-25-031628 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2025-03-31 · accession 0001628280-26-038115 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2022-03-31 · accession 0001628280-23-019814 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-03-31 · accession 0001628280-25-031628 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-03-31 · accession 0001628280-26-038115 (CashAndCashEquivalentsAtCarryingValue)