Shares of Digital Turbine (NASDAQ: APPS) surged 9.56% in Tuesday's trading session, following the company's impressive fourth-quarter fiscal 2025 earnings report released after market close on Monday. The mobile advertising technology firm outperformed analyst expectations and provided an optimistic outlook for the coming fiscal year, driving investor enthusiasm.

Digital Turbine reported Q4 FY2025 revenue of $119.2 million, representing a 6% year-over-year increase and beating the analyst consensus estimate of $116.64 million. The company's adjusted earnings per share came in at $0.10, significantly surpassing the expected $0.04. Notably, adjusted EBITDA grew by 66% year-over-year to $20.5 million, while free cash flow improved by over $21 million compared to the prior year, reaching $5.5 million.

Looking ahead, Digital Turbine provided strong guidance for fiscal year 2026, projecting revenue between $515 million and $525 million, and non-GAAP adjusted EBITDA of $85 million to $95 million. This outlook suggests continued growth and operational efficiencies, which have boosted investor confidence. The company's focus on international expansion, particularly in improving revenue per device (RPD) in markets outside the U.S., has shown promising results with RPDs up more than 40% year-over-year in the U.S. and over 100% internationally.

CEO Bill Stone highlighted the company's progress in leveraging artificial intelligence and machine learning to enhance its advertising platform's performance. Additionally, favorable regulatory trends globally are opening up opportunities for Digital Turbine's alternative app distribution solutions, potentially driving further growth. The company's efforts in diversifying its revenue streams and expanding partnerships with major tech companies like Pinterest are also contributing to its positive outlook.