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 advertising technology company reported mixed results, with revenue growth overshadowed by an earnings miss.

For the quarter, Digital Turbine posted revenue of $130.9 million, marking an 11% increase year-over-year and beating analyst estimates of $121.945 million. However, the company's adjusted earnings per share (EPS) of $0.05 fell short of the expected $0.08, representing a 37.5% miss and a 28.57% decrease from the same period last year. This earnings disappointment appears to be the primary driver behind the stock's sharp decline.

Despite the negative market reaction, Digital Turbine reported some positive metrics, including a 73% year-over-year increase in non-GAAP adjusted EBITDA to $25.1 million. The company also raised its fiscal year 2026 guidance, projecting revenue between $525 million and $535 million. CEO Bill Stone attributed the company's performance to increased demand for its Ignite platform and improved device sales. However, investors seem to be focusing on the bottom-line miss, leading to the significant after-hours sell-off.