Good day, and welcome to the Digital Turbine Reports Fourth Quarter and Fiscal 2025 Financial Results Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Brian Bartholomew, Head of Investor Relations. Please go ahead, sir.

Thank you, Chuck. Good afternoon. Welcome to the Digital Turbine Fourth Quarter and Fiscal 2025 Earnings Conference Call. Joining me on the call today to discuss our results are CEO, Bill Stone, and CFO, Stephen Lasher. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As required by law, we undertake no obligation to update any forward-looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we file with the Securities and Exchange Commission. Also during this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures, as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now I'd like to turn the call over to our CEO, Bill Stone.

Thanks, Brian, and thank you all for joining our call tonight. Before breaking down our specific operating results and commentary, I wanted to provide three important updates. First, our business has returned to year-over-year growth on both the top and bottom lines. Not only did our top line grow from March of this year, compared to March of last year, but our year-over-year EBITDA grew by 66%. Our improved execution and actions are now bearing fruit. Secondly, the business continues to build on that momentum. Our current June is trending positively and we expect to show improved performance both sequentially and year-over-year. And finally, we extended our credit facility with our bank group. We believe this extension combined with our improved execution provides more opportunities to lower our cost of capital into the future. To move to our fiscal '25 results, we achieved $119.1 million of revenue, $20.5 million of EBITDA, and $0.10 of non-GAAP earnings per share. It was an important transition year to begin our return to growth as our investments in a variety of activities set us up well for today and tomorrow. Specifically, our new version of Ignite, our material progress on managing and leveraging our first-party data into our AI machine learning platform, our launch of new improved bidding capabilities, and many back-end corporate systems that are simplifying and automating our work. All of these things are helping drive improved performance in the present and into the future. For the March, on the on-device or ODS business, we showed double-digit year-on-year top-line growth. Devices on our legacy U.S. partners declined year-over-year but were offset by new device launches from outside the U.S. The real highlight of our ODS growth was due to improved revenue per device, or RPD. Our RPDs were up more than 40%…

Thanks, Bill. Good afternoon, everyone. It's been a privilege to meet several of you during my time so far as CFO of Digital Turbine. I look forward to engaging with many more of you in the near future as we continue building value together. Before we get into the results, I want to briefly reflect on my three months as CFO at Digital Turbine. I spent this time focused on strengthening financial execution, improving cash flow visibility, tightening working capital management, and aligning more closely with our business and product teams to support smarter, more efficient growth. Importantly, we continue to make progress on our capital structure and adding stability as we move into fiscal year 2026. Now turning to our performance in the fiscal fourth quarter and full year fiscal 2025. The fiscal fourth quarter marked a true inflection point for the company. As we return to year-over-year growth for both revenue and adjusted EBITDA during the quarter, revenue of $119.2 million represented 6% growth year-over-year. At a segment level, revenue for our ODS segment was up 11% year-over-year, while our revenue for the AGP segment was down 3% year-over-year. The combination of renewed top-line growth and the realization of expense savings via the enactment of our transformation program in late calendar 2025 led to more significant gains in EBITDA and free cash flow during the quarter. Our fiscal fourth quarter adjusted EBITDA of $20.5 million represented 66% growth year-over-year. Perhaps more importantly, our positive free cash flow of $5.5 million in March represented an increase of more than $21 million as compared to the prior year period. We are pleased to be benefiting from the combination of renewed revenue growth and lower cash operating expenses and expect to realize additional expansion in adjusted EBITDA margins moving forward. Non-GAAP…

Yes, sir. We will now begin the question and answer session. If you would like to withdraw your question, press two. The first question will come from Anthony Stoss with Craig Hallum. Please go ahead.

Thanks. Nice execution, guys, and welcome aboard, Steve. First question, Bill, I just wanted to focus on your RPD which was up quite a bit internationally. Can you talk about opportunities that you're seeing? Are they with new device makers, new carriers, or both? Any color would be helpful and then I had a couple of follow-ups.

Yes, thanks, Tony. Yes, on the international RPU RPDs, as you know, we've been at this for a long time to really close the gap between what we see here in the U.S. and internationally. I was really just pleased on a few fronts. One is our ability to take our international demand that's coming from the U.S. to our international partners or from Asia or coming from Europe and then bringing it onto our international footprint is really, number one, increasing our breadth. Number two is we've really improved our execution operationally to match a lot of the things that we do in terms of how things work in a market like Brazil or India or the U.K. versus how we've optimized it for here in the U.S. That execution has been better for us. And third is just increasing our distribution footprint to be able to cast a wider net to go after partners. So all of those three things together have really helped. And then as we add more and more devices in these regions from partners like Motorola, Telefonica, and so on, it adds to more density of that supply to where more demand partners want to be. So all those things combined together really helped drive improved results for us.

Got it. And then Bill, you talked about the regulatory environment. Definitely, the trend is heading your way. I'm just curious if you've seen an increase in activity from the app publishers interested in either Single Tap or your app install technology and maybe you could share with us a number of new licensees signed last quarter?

Yes. So the regulatory environment continues to be favorable for us. What we're seeing right now is people want to see a level playing field. They want to make sure that publishers have access to customers without having to go through some of the gatekeepers that we see, and that's a global phenomenon. The awareness continues to build. I think it is important to separate out legislation from legal lawsuits, what we see here in the U.S. Those are different things and have different implications. But regardless of them, those are things that are positive for us as they just continue to build awareness and opportunity for us to distribute that. In other ways, as you mentioned, we distribute that through our Single Tap licensing capabilities. We've got a number of good partners. You heard me talk about Epic and you heard Jeremy mention Pinterest in remarks and a number of those we've talked about in the past. We continue to see people wanting to figure out how they can reach consumers in a very scalable way and our device footprint that we've been building over many, many years is a way to go do that and then combine that with the data that we've got access to is something that's got a lot of interest and excitement.

Got you. And if I can include Steve to put him on the spot, but when you look at OpEx going forward, great adjusted EBITDA in the quarter and for the guide. Do you expect your expense level needs to change quite a bit or is it going to be held relatively flat going forward?

When we look at it, it would be relatively flat going forward. You may see increases as we continue to grow the business. But for the most part, it would be relatively flat.

Perfect. Thanks for the color guys.

Thank you.

Thanks, Tony.

This will conclude our question and answer session. I would like to turn the conference back over to Mr. Bill Stone for any closing remarks. Please go ahead, sir.

Yes. Thanks, Chuck, and thanks, everyone, for joining the call today. We'll talk to you again in our fiscal 2026 first quarter call in a few months. Thanks, and have a great night.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.