APPS' AGP Growth Fueled by Rising Ad Impressions: What's Next?

Digital Turbine’s APPS App Growth Platform (AGP) business runs a programmatic marketplace where demand-side platforms (DSPs) bid in real time for publisher ad inventory. APPS charges these DSPs for the solution and shares revenues with publishers as its business model.

Digital Turbine’s AGP business is experiencing strong growth. In the second quarter of fiscal 2026, APPS’ AGP supply volumes experienced a surge in impressions by 30% year over year. This explosive growth in AGP came from growth in its distribution of SDK footprint, non-gaming inventory and robust performance in the APAC region.

Traditionally, APPS’ AGP offerings execute brand and performance campaigns directly for advertisers on cost per mile or cost per install models based on control of ad slots. Digital Turbine is now improving its AGP platform by implementing AI and machine learning, which will help it improve ad targeting and return on ad spend through data-driven decisions.

APPS’ AGP segment grew 20% year over year, delivering $44.7 million in revenues. To future-proof its prospects, Digital Turbine is integrating data, machine learning and AI in AGP offerings. Through its Ignite Graph, which is a first-party data engine and DTiQ, an AI/machine learning prediction platform, APPS is improving ad targeting, return on ad spend and user experience.

How Competitors Fare Against APPS

In its AGP business, Digital Turbine is not seeing any competition as such. The company, on its earnings call, stated that while a lot of the names in the industry may be competition on one part of its business, they are customers on the DSP side. APPS has not experienced anything material happening in the competitive landscape on the AGP side over the past six months.

However, in the broader sense, APPS faces competition from AppLovin APP and Unity Software U, which 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 Software.

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 gained 245.8% in the past year against the Zacks Internet – Software industry’s growth of 1.1%.

From a valuation standpoint, Digital Turbine trades at a forward price-to-book ratio of 3.72X, lower than the industry’s average of 5.82X.

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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