Shares of Digital Turbine (NASDAQ: APPS) surged 8.94% in pre-market trading on Tuesday, 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. CEO Bill Stone highlighted the company's progress in leveraging artificial intelligence and machine learning to enhance its advertising platform's performance. Additionally, the company's focus on international expansion has shown promising results, with revenue per device (RPD) up more than 40% year-over-year in the U.S. and over 100% internationally. Favorable regulatory trends globally are also opening up opportunities for Digital Turbine's alternative app distribution solutions, potentially driving further growth.