Digital Turbine Shares Drop Nearly 30% Following Accounting Revision and Margin Contraction
Digital Turbine (APPS) experienced a significant sell-off this week, with its stock price falling 29.7% despite reporting second-quarter revenue of $178.7 million, which exceeded consensus estimates. The decline was primarily driven by the disclosure of an accounting error that understated revenue-share expenses by $3.5 million for the quarter ending June 30, 2026. In addition to the accounting revision, investors reacted negatively to a 400-basis-point contraction in gross margins, which fell to 43%. This combination of financial scrutiny and margin pressure has triggered investigations by several law firms regarding shareholder litigation. The market volatility wiped approximately $350 million off the company's market capitalization.
Tickers: $APPS
Topics: accounting revision earnings report gross margin contraction revenue-share expenses stock price drop