Digital Turbine's ODS Growth Fueled by Ad Demand: What's Next?

Digital Turbine’s APPS On Device Solutions (ODS) offerings have been at the core of simplifying how users discover and receive mobile apps and content through carrier and OEM partnerships. ODS includes Application Media for app delivery, Content Media for news and entertainment monetized through advertisements and sponsored content, which serve all the stakeholders, including users, carriers, device manufacturers and app publishers.

APPS’ user-acquisition tools like SingleTap and DT DSP enable fast, high-conversion app installs, helping users to find apps that satisfy their demand on the go while also enabling app publishers to deliver to their organic user base. APPS’ international ODS business is gaining strength as it grew 80% year over year in the second quarter of fiscal 2026, and now accounts for more than 25% of the ODS revenues.

Behind the explosive growth of the ODS products is APPS’ efforts to integrate legacy tech stacks into the common platform, which is why it is experiencing higher advertiser demand. Strong advertiser demand has led to more than 30% year-over-year growth in revenue per device across the U.S. and international markets for the ODS business. APPS’ ODS business has also benefited from improved pricing, fill rates and premium placements.

Secondly, APPS’ ODS business also benefited from larger shipments of smartphones with Digital Turbine’s technology installed compared to the previous year. To deliver ODS offerings, APPS has to work with partners. In that case, over-reliance on a single partner can destabilize this strong growth. The bright spot is that for the fiscal years ended March 31, 2025, 2024, and 2023, none of APPS’ partners contributed to more than 10% of its net revenues, making APPS well diversified.

How Competitors Fare Against APPS

AppLovin APP and Unity Software U operate in the mobile ad-network and app monetization space. While Unity Software is primarily known for its game engine, it also provides solutions for ad mediation infrastructure, ad monetization and ad-tech services, including ad networks, analytics, live-ops, and ad monetization tools for games/apps built with Unity.

Another player in the ad monetization space, apart from Unity Software, is Applovin. Applovin specializes in in-app advertising demand, broad reach, especially via mobile games, and good mediation infrastructure. This particular market in which Digital Turbine operates becomes even more fragmented and competitive due to regional players and the availability of OEM-led alternatives.

APPS Price Performance, Valuation and Estimates

Shares of Digital Turbine have lost 227.4% in the past year against the Zacks Internet – Software industry’s growth of 1.3%.

From a valuation standpoint, Digital Turbine trades at a forward price-to-book ratio of 3.62X, lower than the industry’s average of 5.81X.

The Zacks Consensus Estimate for    Digital Turbine’s fiscal 2026 earnings implies a year-over-year decline of 5.7%. The estimate for fiscal 2026 has been revised downward in the past 30 days.

Digital Turbine currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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