Digital Turbine (NASDAQ: APPS) saw its shares plummet 7.35% in after-hours trading on Tuesday following the release of its fiscal 2026 first-quarter financial results. The mobile growth platform company reported mixed results, with revenue surpassing expectations but earnings falling short of analyst estimates.

For the quarter, Digital Turbine posted adjusted earnings per share of $0.05, missing the analyst consensus estimate of $0.08 by 37.5%. This represents a 28.57% decrease compared to earnings of $0.07 per share in the same period last year. However, the company's quarterly revenue came in at $130.926 million, beating the analyst consensus estimate of $121.945 million by 7.36% and marking a 10.96% increase from the previous year.

Despite the revenue growth and a 73% year-over-year increase in non-GAAP adjusted EBITDA to $25.1 million, investors seemed to focus on the earnings miss and the reported GAAP net loss of $14.1 million. CEO Bill Stone highlighted increased demand for the company's Ignite platform and improved device sales as key drivers of performance. Looking ahead, Digital Turbine raised its fiscal year 2026 guidance, projecting revenue between $525 million and $535 million. However, the market's negative reaction suggests concerns about the company's profitability and ability to meet earnings expectations in the face of ongoing challenges in the mobile advertising and app monetization landscape.