Digital TurbineAPPS +9.56%51 Gross Margin % is 50.40% as of Mar. 2026, which is 15% above its 10-year median of 43.64. GuruFocus rates APPS with a GF Score™ of 51/100 and a GF Value™ of $4.32 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,683 Software companies, Digital Turbine ranks better than 59.45% on this metric.
The historical rank and industry rank for Digital Turbine's Gross Margin % or its related term are showing as below:
APPS'
s Gross Margin % Range Over the Past 10 Years
Min: 28 Med: 43.64 Max: 48.59
Current: 48.59
During the past 13 years, the highestGross Margin % of Digital Turbine was 48.59%. The lowest was 28.00%. And the median was 43.64%.
APPS's Gross Margin % is ranked better than 59.45% of 2683
companies
in the Software industry
Industry Median: 40.45
vs APPS: 48.59
Digital Turbine had a gross margin of 50.40% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digital Turbine was 1.60% per year.
Digital Turbine (NAS:APPS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Digital Turbine had a gross margin of 50.40% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Digital Turbine Gross Margin % Related Terms
Digital Turbine Gross Margin % Historical Data
* Premium members only.
The historical data trend for Digital Turbine's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
APPS vs AMPL, UPBD, DFIN: Gross Margin % Comparison
For the Software - Application subindustry, Digital Turbine's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digital Turbine Gross Margin % vs Software Industry
For the Software industry and Technology sector, Digital Turbine's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Turbine's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Digital Turbine (APPS) has a Gross Margin % of 50.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Turbine and its competitors. This is 15% above median its historical median of 43.64. Over the past decade, Digital Turbine's Gross Margin % has ranged from 28.00 to 48.59. According to the industry distribution chart, Digital Turbine ranks #1088 out of 2683 companies in the Software industry, placing it in the top 40.6%.
Is Digital Turbine's Gross Margin % too high?
Digital Turbine's current Gross Margin % of 50.40% is 15% above median its 10-year median of 43.64. Over the past 10 years, this metric has ranged from a low of 28.00 to a high of 48.59. The Software industry median Gross Margin % is 40.45. Digital Turbine's value of 50.40% is 24.6% above this industry median. Based on the distribution chart, Digital Turbine ranks #1088 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Digital Turbine has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Turbine's Gross Margin % compare to AMPL and UPBD?
According to the Software industry distribution chart, Digital Turbine ranks #1088 out of 2683 companies for Gross Margin %. This puts Digital Turbine in the upper half of its industry. The industry median Gross Margin % is 40.45. Digital Turbine's value of 50.40% is 24.6% above this benchmark. Historically, Digital Turbine's own Gross Margin % has ranged from 28.00 to 48.59 over the past decade. While the company's 10-year median is 43.64 vs. the industry median of 40.45, Digital Turbine has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digital Turbine's current Gross Margin % of 50.40% is 24.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Turbine and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Turbine's current Gross Margin % is 50.40%, which is 15% above median its own 10-year median of 43.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Turbine stock overvalued right now?
Based on GuruFocus' analysis, Digital Turbine (APPS) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.32, compared to a current price of $10.14 — trading 134.7% above its estimated fair value. The current Gross Margin % is 50.40%, which is 15% above median its 10-year median of 43.64 and 24.6% above the Software industry median of 40.45. Digital Turbine's overall GF Score™ is 51/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Digital Turbine (APPS), the current Gross Margin % is 50.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Digital Turbine (APPS) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Turbine stock appears to be overvalued.
The current stock price of $10.14 is trading 134.7% above its estimated GF Value™ of $4.32.
GuruFocus considers Digital Turbine to be Significantly Overvalued.
Key valuation signals for APPS:
Gross Margin %: 50.40% (15% above median its 10-year median of 43.64)
GF Value™: $4.32 vs. price of $10.14 (134.7% above fair value)
Industry Position: 24.6% above the Software median (#1088 of 2683)
No single metric tells the full story. See the APPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Turbine Inc is an independent mobile growth platform that levels up the landscape for advertisers, publishers, carriers, and device original equipment manufacturers. The Company offers end-to-end products and solutions leveraging proprietary technology to all participants in the mobile application ecosystem, enabling brand discovery and advertising, user acquisition and engagement, and operational efficiency for advertisers. In addition, its products and solutions provide monetization opportunities for OEMs, carriers, and application (app or apps) publishers and developers.
51GF Score
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