Q4 2025 Digital Turbine Inc Earnings Call
Unknown Executive: Good day and welcome to the Digital Turbine Reports fourth quarter and fiscal 2025 financial results conference call. All participants will be in a listen only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero.
Good day and welcome to the digital turbine reports fourth quarter and fiscal 2025 financial results Conference call.
All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero.
Unknown Executive: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your touchtone phone, and to withdraw your question, please press star, then 2. Please note, this event is being recorded.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone and switched to all your question. Please press Star then two.
Speaker Change: Please note. This event is being recorded I would now like to turn the conference over to Mr. Brian Bartholomew head of Investor Relations. Please go ahead Sir.
Brian Bartholomew: I would now like to turn the conference over to Mr. Brian Bartholomew, Head of Investor Relations. Please go ahead. Thank you, Chuck.
Speaker Change: Thank you Chuck good afternoon, and welcome to the digital turbine fourth quarter and fiscal 2025 earnings conference call.
Bill Stone: Good afternoon and welcome to the Digital Turbine fourth quarter and fiscal 2025 earnings conference.
Bill Stone: Joining me on the call today to discuss our results are CEO Bill Stone and CFO Steve Lashley. 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. Accept as required by law, we undertake no obligation to update any forward-looking statement.
Speaker Change: Joining me on the call today to discuss our results are CEO, Bill stone and CFO, Steve Lasher.
Speaker Change: Before we get started I would like to take this opportunity to remind you.
Speaker Change: Our remarks today will include forward looking statements.
Speaker Change: These forward looking statements are based on our current assumptions expectations and beliefs.
Speaker Change: 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 of them and that inevitably prove to be incorrect.
Speaker Change: Except as required by law, we undertake no obligation to update any forward looking statements.
Bill Stone: For a 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.
Speaker Change: For a 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.
Bill Stone: Also, during this call, we will discuss certain non-GAP measures of our performance. Non-GAP measures are not substitutes for GAP. 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.
Speaker Change: Also during this call we will discuss certain non-GAAP measures of our performance.
Speaker Change: non-GAAP measures are not substitutes for GAAP measures.
Speaker Change: Please refer to today's press release for important information about the limitations of using non-GAAP measures.
Speaker Change: As well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures.
Bill Stone: Now I'd like to turn the call over to our CEO, Bill Stone. Thanks, Brian. And thank you all for joining our call tonight.
Speaker Change: Now I'd like to turn the call over to our CEO Bill Stone.
Bill Stone: Thanks, Brian and thank you all for joining our call Tonight.
Bill Stone: Before breaking down our specific operating results and commentary, I wanted to provide three important updates. First, our businesses return to year-over-year growth on both the top and bottom lines. Not only did our top line grow from March of this year compared to March of last year, but our year-over-year EBITDA grew by 66%. Our improved execution and actions are now bearing fruit. Secondly, the business continues to build on that momentum. Our current June quarter is trending positively, and we expect to show improved performance both sequentially and year-over-year.
Speaker Change: Before breaking down our specific operating results and commentary I wanted to provide three important updates.
Speaker Change: First our business has returned to year over year growth on both the top and bottom lines.
Speaker Change: Not only did our topline growth from March of this year compared to March of last year, but our year over year EBITDA grew by 66%.
Speaker Change: Our improved execution and actions are now bearing fruit.
Speaker Change: Secondly, the business continues to build on that momentum.
Speaker Change: Our current June quarter is trending positively and we expect to show improved performance, both sequentially and year over year.
Bill Stone: And finally, we've extended our credit facility with our bank group. We believe this extension, combined with our improved execution, will provide more opportunities to lower our cost of capital into the future.
Speaker Change: And finally, we extended our credit facility with our Bank group. We believe this expansion combined with our improved execution will provide more opportunities to lower our cost of capital into the future.
Speaker Change: Okay.
Bill Stone: To move to our fiscal 25 results, we achieved $119.1 million of revenue, $20.5 million of EBITDA, and $0.10 of non-GAAP earnings per share. It was an important transition year to begin our return to growth as our investments in a variety of activities to set us up well for today and tomorrow. Specifically, our new version of Ignite, our material progress on managing and leveraging our first party data into our AI machine learning platform, our launch of a new improved bidding capabilities, and many backend corporate systems that are simplifying automating our work. And all of these things are helping drive improved performance in the present and into the future.
Speaker Change: To move to our fiscal 2005 results, we achieved $119 $1 million of revenue $25 million of EBITDA and 10 cents of non-GAAP earnings per share.
Speaker Change: It was an important transition year to begin a return to growth as our investments in a variety of activities to set us up well for today and tomorrow.
Speaker Change: Okay.
Speaker Change: Specifically, our new version of ignite our material progress on managing and leveraging our first party data into our AI machine learning platform, our launch of a new improved bidding capabilities and many backend corporate systems that are simplifying and automating our work and all of these things are helping drive improved performance in the present and in.
Speaker Change: In the future.
Bill Stone: For the March quarter on the on-device or ODS business, we showed double-digit. year-on-year top-line growth. Devices on our legacy U.S. partners declined year-over-year, but was offset by new device launches from outside the U.S. The real highlight of our ODS growth was due to Improved Revenue Per Device, or RPD. Our RPDs were up more than 40% year over year in the U.S. and over 100% internationally year over year. This was driven by strong advertiser demand and improved monetization over the life of the device. And as we've discussed on prior calls, the opportunity for organic growth with improved international revenue per device has been a focus area for us, and I was really pleased to see us build upon our improved execution from the December quarter.
Speaker Change: For the March quarter on the on device or Ods business, we showed double digit.
Speaker Change: Year on year top line growth devices on our legacy U S partners declined year over year, but was offset by new device launches from outside the U S.
Speaker Change: The real highlight of or Ods growth was due to improved revenue per device or RPT.
Speaker Change: Our RPT is were up more than 40% year over year in the U S and over 100% internationally year over year.
Speaker Change: This was driven by strong advertiser demand and improved monetization over the life of the device.
Speaker Change: And as we've discussed on prior calls the opportunity for organic growth with improved international revenue per device has been a focus area for us and I was really pleased to see us build upon our improved execution from the December quarter.
Bill Stone: Our AGP business generated $33 million in revenue in the quarter. One of our AGP focus areas continues to be our investment in brands that want to leverage our first party data to reach their existing and potential customers over our global network. As discussed on prior calls, it's a strategic objective for us and something we've invested in to differentiate us from other players. We're now in a great position to continue to grow and we'll continue to invest here as we believe we're building a moat, given the high barriers to entry and work required to earn the trust of top brands and agencies looking to find digital channels for their audiences that are not just CTV or retail media.
Speaker Change: Our AGP business generated $33 million in revenue in the quarter.
Speaker Change: One of our AGP focus areas continues to be our investment in brands that want to leverage our first party data to reach their existing and potential customers over our global network.
Speaker Change: As discussed on prior calls, it's a strategic objective for us and something we've invested in to differentiate us from other players.
Speaker Change: We're now in a great position to continue to grow and we will continue to invest here as we believe we are building a moat given the high barriers to entry and work required during the trust of top brands and agencies looking to find digital channels for their audiences that are not just CTV our retail media.
Speaker Change: Okay.
Bill Stone: One of our other top priorities for the AGP business is improving our performance advertising by better leveraging our own first party data and AI machine learning platform on our demand side platform or DSP.
Speaker Change: One of our other top priorities for the AGP business is improving our performance advertising by better leveraging our own first party data and AI machine learning platform on our demand side platform or DSP.
Bill Stone: On the supply side, our consolidated exchange, which we brand as DTX, continues to return to growth as having focused on managing one versus multiple exchanges is paying dividends. The legacy fiber and ad colony exchange businesses were focused on waterfall bidding with third party performance DSPs, primarily buying gaming advertising inside gaming applications. And as expected, these DSPs have been executing their own supply path optimization strategies to vertically integrate their demand connected to their own supply. And for those companies without a strong mediation footprint, it has become largely a commoditized ad tech gaming space for both iOS and Android.
Speaker Change: On the supply side, our consolidated exchange, which we brand as Gtx continues to return to growth is having to focus on managing one versus multiple exchanges is paying dividends.
Speaker Change: The legacy fiber and add colony exchange businesses, we're focused on waterfall bidding with third party performance Dsp's, primarily buying gaming advertising inside gaming applications.
Speaker Change: And as expected these DSP chip in executing their own supply path optimization strategies to vertically integrate their demand connected to their own supply.
Speaker Change: And for those companies without a strong mediation footprint. It has become largely a commoditized AD tech gaming space for both iOS and Android.
Bill Stone: We saw this risk years ago, and that's why we invested in our own brand and SDK bidding activities to mitigate that risk, increase our own first party data activities on our own network, and continue to invest in mediation. These activities are bearing fruit as our DTX business has returned to growth. We've also been able to expand our AGP supply. from being largely dependent on game publishers to much more diversified over non-gaming. To illustrate this point, our DTX revenues on non-gaming applications have nearly doubled over the past year.
Speaker Change: We saw this risk years ago, and that's why we invested our own brands and SDK bidding activities to mitigate that risk increase our own first party data activities on our own network and continue to invest in mediation.
Speaker Change: These activities are bearing fruit is our gtx business has returned to growth.
Speaker Change: We've also been able to expand our AGP supply.
Speaker Change: From being largely dependent on game publishers to much more diversified over non gaming.
Speaker Change: To illustrate this point, our gtx revenues on non gaming applications have nearly doubled over the past year.
Bill Stone: Turning to future, our focus is continuing to build on our growth while building increased efficiency in our work. The keys to driving growth are more devices, improved performance for our legacy and new products, and a wider and deeper net of media and brand relationships. The key to efficiency is automation, aligning operating costs to gross profit, realigning our people, process, and systems for maximum benefit. And we've been able to realize significant efficiencies in our transformation cost savings, but we still have more opportunities to add this fiscal year as we use AI to automate and simplify our operational processes and organizational structures and leverage our technology and system investments for greater efficiencies.
Speaker Change: Turning to future our focus is continuing to build on our growth while building increased efficiency in our work.
Speaker Change: The keys to driving growth or more devices improved performance from our legacy and new products and a wider and deeper net of media and brand relationships.
Speaker Change: The heater efficiencies automation aligning operating cost to gross profit realigning our people process and systems for maximum benefit.
Speaker Change: And we've been able to realize significant efficiencies in our transformation cost savings, but we still have more opportunities to add this fiscal year as we use AI to automate and simplify our operational processes and organizational structures and leverage our technology and system investments for greater efficiencies.
Bill Stone: To drive faster growth, the first driver is expanding our device footprint. And despite the soft device sales here in the U.S.
Speaker Change: To drive faster growth. The first driver is expanding our device footprint.
Speaker Change: And despite the soft device sales here in the U S with our legacy partners I am pleased to announce that T. Mobile is now live with us in the U S on ignite and internationally, we continue to grow with more and deeper relationships with our international partners in Europe, Asia and Latin America.
Bill Stone: with our legacy partners, I'm pleased to announce that T-Mobile is now live with us in the U.S. on Ignite, and internationally, we continue to grow with more and deeper relationships with our international partners in Europe, Asia, and Latin America.
Bill Stone: Our second growth driver is expanding our product portfolio for both our ODS and AGP businesses. On the ODS side, the launch of our new version of Ignite is an important milestone. It's now on over 100 million devices. It enables us to launch more services more quickly to generate revenue, be more efficient with our resources, and most importantly, improve the overall quality of our offerings to our customers and partners. We've also made significant strides in our first party data leveraging our AI machine learning platform. We've been busy over the past two years taking our rich data sets and getting the data organized into a scalable, usable, and consistent format in our data lake.
Speaker Change: Our second growth driver is expanding our product portfolio for both our ods and AGP businesses.
Speaker Change: On the audio side the launch of our new version of ignite is an important milestone. It is now on over 100 million devices.
Speaker Change: It enables enables us to watch more services more quickly to generate revenue be more efficient with our resources and most importantly improved the overall quality of our offerings to our customers and partners.
Speaker Change: We've also made significant strides in our first party data leveraging our AI and machine learning platform.
Speaker Change: We've been busy over the past few years taken a rich datasets and getting the data organized into a scalable usable and consistent format and our data Lake.
Bill Stone: And with that work largely complete, we're ingesting over a thousand different dimensions and more than 1500 unique data events by which we now can build our sophisticated AI machine learning models upon. We've already seen conversion rates improvements from these efforts and expect this work to be a growth driver for our top and bottom lines this year as we drive better outcomes for publishers, advertisers, and end customers.
Speaker Change: And without work largely complete we're ingesting over a thousand different dimensions in more than 1500 unique data events by which we know can build our sophisticated AI machine learning models upon we've.
Speaker Change: We've already seen conversion rate improvements from these efforts and expect this work to be a growth driver for our top and bottom lines. This year as we drive better outcomes for publishers advertisers and end customers.
Bill Stone: Our other product priority is growing and scaling our alternative app efforts. We see alternative apps in a few different dimensions. First is through our alternative store. We're live here in the U.S. on many operators, including Verizon, and are working closely with many publishers, including Epic Games, King, and others to help in their distribution to a wider audience. Specifically, many of you may have seen Epic's announcement of 40 million installs of their alternative store, where we are a major partner with them, leveraging our products such as single tap, dynamic installs, and others. Another way is helping publishers distribute their billing to end customers where we can leverage our on-device footprint and products like such as Singletap, AppMatch, and so on.
Speaker Change: Our other product priority is growing and scaling our alternative app efforts.
Speaker Change: We see alternative apps in a few different dimensions first is through our alternative store for life here in the U S and many operators, including Verizon and are working closely with many publishers, including epic games, King and others to help in their distribution to a wider audience.
Speaker Change: Specifically many of you may have seen ethics announcement of 40 million installs are there alternative store, where we are a major partner with them leveraging our products such as single tap dynamic installs and others.
Speaker Change: Another way is helping publishers distribute their billing to end customers, where we can leverage our on device footprint and products like such as single tap at match and so on here.
Bill Stone: Here we partner with both the app publisher and the payment partners to help them drive more users.
Speaker Change: Here, we partner with both the publisher and the payment partners to help them drive more users.
Bill Stone: We've seen the global regulatory and legal activity against Google and Apple accelerate over the past quarter, not just in the EU, but in other places such as Brazil, Japan, India, Turkey, and as well as here in the U.S.
Speaker Change: We've seen the global regulatory and legal activity against Google and Apple accelerate over the past quarter not just in the EU, but in other places such as Brazil, Japan, India, Turkey, and as well as here in the U S.
Bill Stone: Our final growth driver is broader and deeper media relationships. We continue to make positive progress with more brands and performance advertisers. A specific example here is Pinterest, who we've had a nice relationship with on our ODS products for many years, but recently expanded our relationship to include single tap licensing. We're also seeing new categories emerge, such as the large AI model players trying to improve their distribution footprints. We've recently launched with one of them and see this as an interesting growth area into the future.
Speaker Change: Our final growth driver is broader and deeper media relationships, we continue to make positive progress with more brands and performance advertisers.
Speaker Change: Specific example, here's Pinterest, who we've had a nice relationship with an R. Ods products for many years, but recently expanded our relationship to include single tap licensing.
Speaker Change: We're also seeing new categories emerge such as the large AI motto players trying to improve their distribution footprints. We've recently launched with one of them and see this as an interesting growth area into the future.
Bill Stone: In conclusion, I want to give our team at DT a shout out. Due to their hard work and focus, we've regained business momentum and growth. Building on that momentum and growing our top and bottom lines remains a top priority of the company.
Speaker Change: In conclusion, I want to give our team a D T. A shout out due to their hard work and focus we've regained business momentum and growth.
Speaker Change: Building on our momentum in growing our top and bottom lines remains a top priority of the company.
Bill Stone: We're confident we have the right strategy, partners, market opportunity, commercial models, and products to have a very bright future as we're in the right space at the right time, which is critical for any technology company.
Speaker Change: We're confident we have the right strategy partners market opportunity commercial models and products to a very bright future as we are in the right space at the right time, which is critical for any technology company and with that I'll turn it over to Steve to take you through the numbers.
Steve Lashley: And with that, I'll turn it over to Steve to take you through the numbers. Thanks, Bill. And good afternoon, everyone.
Steve Lasher: Thanks, Bill and good afternoon, everyone. It's been a privilege to meet several of you. During my time, so far as CFO of digital turbine and I look forward to engaging with many more of you in the near future as we continue building value together.
Steve Lashley: It's been a privilege to meet several of you during my time so far as CFO of Digital Turbine, and I look forward to engaging with many more of you in the near future as we continue building value together. Before we get into the results, I want to briefly reflect on my three months as CFO at Digital Turbine. I spent this time focused on strengthening financial execution, improving cash flow visibility, Tightening working capital management and aligning more closely with our business and product teams to support smarter, more efficient growth. Importantly, we continue to make progress on our capital structure and adding stability as we move into fiscal year 2026.
Steve Lasher: Before we get into the results I want to briefly reflect on my three months as CFO of digital turbine.
Steve Lasher: I spent this time focus on strengthening financial execution.
Steve Lasher: Improving cash flow visibility.
Steve Lasher: Tightening working capital management, and aligning more closely with our business and product teams to support smarter more efficient growth.
Speaker Change: Importantly, we continue to make progress on our capital structure, and adding stability as we move into fiscal year 2026.
Steve Lashley: Now turning to our performance in the fiscal fourth quarter and full year fiscal 2025. The fiscal fourth quarter marked a true inflection point for the company as we return to year-over-year growth for both revenue and adjusted EBITDA during the quarter. Revenue of $119.2 million represented 6% growth year over year. At a segment level, revenue for our ODS segment was up 11% year over year, while our revenue for the AGP segment was down 3% year over year. The combination of renewed top line growth and the realization of expense savings via the enactment of our transformation program in late calendar 2025 led to more significant gains in EBITDA and free cash flow during the quarter.
Speaker Change: Now turning to our performance in the fiscal fourth quarter and full year fiscal 2025.
Speaker Change: The fiscal fourth quarter marked a true inflection point for the company as we returned to year over year growth for both revenue and adjusted EBITDA during the quarter.
Speaker Change: Revenue of $119 2 million represented 6% growth year over year.
Speaker Change: At a segment level revenue for our Ods segment was up 11% year over year, while our revenue for the ATP segment was down 3% year over year.
Speaker Change: The combination of renewed top line growth and the realization of expense savings via the anatomy of our transformation program in late calendar 2025 led to more significant gains in EBITDA and free cash flow during the quarter.
Steve Lashley: Our fiscal fourth quarter adjusted EBITDA of $20.5 million represented 66% growth year-over-year. And perhaps more importantly, our positive free cash flow of $5.5 million in the March quarter represented an increase of more than $21 million as compared to the prior year period. We are pleased to be benefiting from the combination of renewed revenue growth and lower cash operating expenses and expect to realize additional expansion in adjusted EBITDA margins moving forward. Non-GAF gross margin expanded to 48% in the fiscal fourth quarter, up from 46% in the year earlier period. This was primarily influenced by product make changes in our ODS segment, in addition to our continued focus on discipline cost control measures.
Speaker Change: Our fiscal fourth quarter, adjusted EBITDA of 25 million represented 66% growth year over year.
Speaker Change: And perhaps more importantly, our positive free cash flow of $5 5 million in the March quarter represented an increase of more than 21 million as compared to the prior year period.
Speaker Change: We are pleased to be benefiting from the combination of renewed revenue growth and lower cash operating expenses and expect to realize additional expansion in adjusted EBITDA margins moving forward.
Speaker Change: non-GAAP gross margin expanded to 48% in the fiscal fourth quarter up from 46 in the year earlier period.
Speaker Change: This was primarily influenced by product mix changes in our <unk> segment. In addition to our continued focus on disciplined cost control measures.
Steve Lashley: Our cash operating expenses in the March quarter were $36.1 million, representing a 7% decline year-over-year and a 4% decline on a sequential basis. We have made real progress on a number of expense-related fronts, not merely with reduced headcount, but also with the migration to more cost-effective platforms and the implementation of more streamlined day-to-day business automation processes. While we're happy with the progress made around our transformation cost savings, we continue to focus on expense optimization efficiencies while still making the necessary strategic investments in the business to maximize the profitability of our growth strategy and fiscal year 2026.
Speaker Change: Our cash operating expenses in the March quarter were $36 1 million, representing a 7% decline year over year, and a 4% decline on a sequential basis weight.
Speaker Change: We have made real progress on a number of expense related fronts, not merely with reduced head count, but also with the migration to more cost effective platforms and the implementation of more streamlined day to day business automation processes.
Speaker Change: While we're happy with the progress made around our transformation cost savings, we continue to focus on expense optimization efficiencies, while still making the necessary strategic investments in the business to maximize the profitability of our growth strategy in fiscal year 2026.
Steve Lashley: Turning now to the bottom portion of the income statement.
Speaker Change: Turning now to the bottom portion of the income statement.
Steve Lashley: We reported a gap net loss of $18.8 million or $0.18 per share in the fiscal fourth quarter. On a non-GAAP basis, we recorded net income of $10.1 million, or $0.10 per share, on 108 million shares outstanding in the fiscal fourth quarter. For the full fiscal year 2025, we generated total revenue of $490.5 million, representing a year-over-year decline of approximately 10% compared to the $544.5 million generated in fiscal year 2024. EBITDA for the full fiscal year 2025 totaled $72.3 million, as compared to EBITDA of $92.4 million for the fiscal year 2024. Gap net loss for all of fiscal year 2025 was $92.1 million, or $0.89 per share, as compared to a gap net loss of $420.4 million, or $4.16 per share, in full fiscal year 2024.
Steve Lashley: We reported a GAAP net loss of $18 8 million or <unk> 18 per share in the fiscal fourth quarter.
Speaker Change: On a non-GAAP basis, we recorded net income of $10 1 million or <unk> 10 per share on 108 million shares outstanding in the fiscal fourth quarter.
Speaker Change: For the full fiscal year 2025, we generated total revenue of 495 million, representing a year over year decline of approximately 10% compared to the $544 5 million generated in fiscal year 2024.
Speaker Change: EBITDA for the full fiscal year 2025 totaled $72 3 million as compared to EBITDA of $92 4 million for the fiscal year 2024.
Speaker Change: GAAP net loss for all of fiscal year, 2025 was $92 1 million or <unk> 89 per share as compared to a GAAP net loss of $420 4 million or $4 16 per share and full fiscal year 2024.
Steve Lashley: On a non-GAAP basis, net income for full fiscal year 25 totaled $36.1 million or $0.34 per share as compared to non-GAAP net income of $60.3 million or $0.58 per share recorded in fiscal year 2024. Moving to the balance sheet, our cash balance at the end of the quarter totaled $40.1 million, an increase of approximately $5 million as compared to the balance at the end of the December quarter. We had no new borrowings in the March quarter, and our debt balance at the end of the quarter stood at $408.7 million.
Speaker Change: On a non-GAAP basis net income for full fiscal year 'twenty five totaled $36 1 million or <unk> 34 per share as compared to non-GAAP net income of $60 3 million or 58 per share recorded in fiscal year 2024.
Speaker Change: Moving to the balance sheet, our cash balance at the end of the quarter totaled $40 1 million.
Speaker Change: An increase of approximately $5 million as compared to the balance at the end of the December quarter.
Speaker Change: We had no new borrowings in the March quarter, and our debt balance at the end of the quarter stood at $408 7 million.
Steve Lashley: As Bill mentioned, we closed on a short-term extension of our credit facility with the existing bank group, and are working on a more permanent debt solution with a variety of debt providers, and we feel confident being able to deliver an attractive solution for stakeholders after these two most recent quarters, which point to the strength and stability of our core business. We'll share more of these details as appropriate.
Speaker Change: As Bill mentioned, we closed on a short term extension of our credit facility with the existing bank group and are working on a more permanent debt solution with a variety of debt providers and we feel confident in being able to deliver an attractive solution for stakeholders. After these two most recent quarters, which point to the strength and stability.
Speaker Change: Of our core business, we will share more of these details as appropriate.
Steve Lashley: Now let me turn to our outlook for fiscal year 2026. We expect revenue to be in the range of $515 to $525 million for the fiscal year 2026, reflecting our continued trajectory and momentum we are seeing in the market. Additionally, we project non-gap adjusted EBITDA to between $85 million and $95 million as we continue to drive operational efficiencies and deliver value for our shareholders. In closing, we're actively positioning the company for sustained growth in 2026 and beyond. Our business is showing encouraging signs of continued momentum, and we remain focused on execution, financial discipline, and creating long term value for our shareholders.
Speaker Change: Now, let me turn to our outlook for fiscal year 2026, we expect revenue to be in the range of $515 million to $525 million for the fiscal year 2026, reflecting our continued trajectory and momentum we are seeing in the market. Additionally, we project non-GAAP adjusted.
Speaker Change: To between $85 million and $95 million as we continued to drive operational efficiencies and deliver value for our shareholders.
Speaker Change: In closing we are actively positioning of the company for sustained growth in 2026 and beyond our business is showing encouraging signs of continued momentum and we remain focused on execution financial discipline, and creating long term value for our shareholders.
Unknown Executive: With that, let me turn the call back to our operator, Chuck. Chuck, let's open it up for questions.
Speaker Change: With that let me turn the call back to our operator check.
Speaker Change: Chuck let's open it up for questions.
Unknown Executive: Yes sir, we will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the If at any time your question has been addressed, and you would like to withdraw your question, please press star, then 2.
Speaker Change: Yes, Sir we will now begin the question and answer session.
Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.
Speaker Change: If you're using a speakerphone please pick up your handset before pressing the keys if at any time. Your question has been addressed you would like to withdraw. Your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
Unknown Executive: And at this time, we'll pause momentarily to assemble our roster.
Speaker Change: Okay.
Anthony Stoss: And the first question will come from Anthony Stoss with Craig Hallam. Please go ahead. Thanks. Nice execution, guys.
Speaker Change: And the first question will come from Anthony Stoss with Craig Hallum. Please go ahead.
Speaker Change: Thanks <unk>.
Bill Stone: And welcome aboard, Steve. Um, first question. Bill, I just wanted to focus on your RPD was up quite a bit internationally. Can you talk about the opportunities that you're seeing? Are they with new device makers, new carriers, or both? Any color would be helpful and add a couple follow-up. Yeah, thanks, Tony. Yeah, on the international RPDs, as you know, we've been at this for a long time to, you know, really close the gap between what we see here in the US internationally. And it's really just pleased on a few fronts. You know, one is our ability to take our international demand, whether that's coming from the US to our international partners, or from Asia, or coming from Europe, and then bringing on to our international footprint is really number one, increasing our breadth.
Steve Lasher: Execution, guys and welcome aboard Steve.
Speaker Change: First question.
Speaker Change: Bill I just wanted to focus on your RPT was up quite a bit internationally can you talk about the opportunities that you're seeing are they with new device makers new carriers or both.
Speaker Change: Any color would be helpful and add a couple of follow ups.
Speaker Change: Yeah. Thanks, Tony Yeah on the International RTD is as you know we've been at this for a long time to really close the gap between what we see here in the U S internationally and it's really just pleased on a few fronts. One is our ability to take our international demand, where that's coming from the U S. Our international partners or from <unk>.
Speaker Change: Asia or coming from Europe, and in bringing onto our international footprint is really number one increasing our breadth.
Bill Stone: Number two is, you know, we've really improved our execution operationally to match a lot of the things that we do in terms of, you know, how things work in a market like Brazil, or India, or the UK versus how we've optimized it for here in the US. So that execution, you know, has been better for us. And third is just increasing our distribution footprint to be able to cast a wider net to go after partners. So all those three, three things together, have really helped. And then as we add more and more devices in these regions from partners like Motorola, Telefonica, and so on, it adds to a more density of that supply to where more demand partners want to be on it.
Speaker Change: Number two is you know, we've really improved our execution operationally to match a lot of the things that we do in terms of our you know how things work in a market like Brazil, or India or the U K versus how we've optimized it for here in the U S that that execution.
Speaker Change: Better for US and third is just increasing our distribution footprint to be able to cast a wider net to go after party and so all of those three things together. It really helped and then as we add more and more devices. In these regions from partners like Motorola Telefonica, and so on and adds to our more density of that supply to where more demand partners wanted to be honest. So all of those things combined together really.
Bill Stone: So all those things combined together really helped drive improved results for us.
Speaker Change: I helped drive improved results for us.
Bill Stone: Got it. And then, Bill, you talked about the regulatory environment, definitely the trend heading your way. I'm just curious if you've seen an increase in activity from the app publishers interested in either single tap or your app install technology and maybe you could share with us a number of new licensees signed last quarter. Yeah, so the regulatory environment continues to be favorable for us. You know, what we're seeing right now is people want to see a level playing field. They want to make sure that publishers have access to customers without having to go through some of the gatekeepers that we see, and that's a global phenomenon.
Bill Stone: Got it and then Bill you talked about the regulatory environment definitely the trend heading your way I'm just curious if you've seen a increase in activity from the App publishers interested in either single tap or your App install technology, and maybe you could share with US a number of new licensees signed last quarter.
Bill Stone: Yeah, So the regulatory environment continues to be favorable for us.
Bill Stone: You know what we're seeing right now is people want to see a level playing field. They want to make sure that publishers have access to customers without having to go through some of the gatekeepers that we see and that's a global that's a global phenomenon and the awareness continues to build I think it is important to separate out legislation from <unk>.
Bill Stone: And the awareness continues to build. I think it is important to separate out legislation from legal lawsuits. What we see here in the U.S. those are different things, have different implications. But regardless of them, those are things that are positive for us. They're just continuing to build awareness, you know, an opportunity for us to distribute that. And one of the ways, as you mentioned, we distribute that is through our single tap licensing capabilities. And, you know, we've got a number of good partners. You heard me talk about Epic and Miramarc. You heard me mention Pinterest, Miramarc, and a number of others we've talked about in the past.
Bill Stone: Legal lawsuits or we see here in the U. S is are those are different things have different implications, but regardless of them. Those are things that are positive for us if they're just continue to build awareness of the.
Bill Stone: An opportunity for us to distribute that I mean, one of the ways. As you mentioned, we distribute that is through our single tap licensing I came.
Bill Stone: Capabilities and we've got a number of new partners. You heard me talk about epic can remark Jeremy mentioned Pinterest I made remarks in a number a number that we've talked about in the past we continue to see people wanting to figure out how can they reach consumers in a very scalable way and our device footprint that we've been building over many many years is a way to go do that and then combine that with her.
Bill Stone: We continue to see people wanting to figure out how can they reach consumers in a very scalable way. And our device footprint that we've been building over many, many years is a way to go do that. And then combine that with the data that we've got access to is something that's got a lot of interest and excitement. Gotcha.
Bill Stone: The data that we've got access to them is something that should it's got a lot of interest and excitement.
Steve Lashley: And if I can include Steve, not to put him on the spot, but when you look at OPEX going forward, great adjusted even down the quarter and for the guide, do you expect your expense level needs to change quite a bit? Or is it going to be held relatively flat going forward? When we look at the relatively flat going forward, you know, you may see increases as we continue to grow the business, but for the most part, we relatively, relatively Perfect.
Speaker Change: Got you and if I can include Steve that's pretty much spot, but when you look at Opex going forward, great adjusted EBITDA in the quarter and for the guide you expense do you expect your expense level Lisa change.
Steve Lashley: Quite a bit or is it going to be held relatively flat going forward.
Speaker Change: Well when we look at it would be relatively flat going forward. Yeah. You may see increases as we continue to grow the business, but for the most part be relatively relatively flat.
Unknown Executive: Thanks for the call, guys. Thank you.
Speaker Change: Perfect. Thanks for the color guys. Thank you.
Speaker Change: I just got a few times.
Unknown Executive: Again, if you have a question, please press star, then.
Speaker Change: Again, if you have a question. Please press Star then one.
Unknown Executive: This will conclude our question and answer session.
Speaker Change: This will conclude our question and answer session I would like to turn the conference back over to Mr. Bill Stone for any closing remarks. Please go ahead Sir.
Bill Stone: I would like to turn the conference back over to Mr. Bill Stone for any closing remarks. Yeah, thanks Chuck and thanks everyone for joining the call today. We'll talk to you again in our fiscal 26 first quarter call in a few months.
Bill Stone: Yeah, Thanks, Chuck and thanks, everyone for joining the call today, we will talk to you again in our fiscal 'twenty six first quarter call in a few months, thanks and have a great night.
Unknown Executive: Thanks and have a great night.
Unknown Executive: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Yeah.
Speaker Change: [music].