Digi International (NASDAQ:DGII) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Digi International (NASDAQ:DGII) announced its earnings results on Wednesday. The technology company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.04, FiscalAI reports. Digi International had a net margin of 9.45% and a return on equity of 10.93%. The business had revenue of $130.74 million for the quarter, compared to analyst estimates of $125.03 million. During the same quarter last year, the business earned $0.51 earnings per share. The company’s revenue for the quarter was up 25.1% compared to the same quarter last year. Digi International updated its Q3 2026 guidance to 0.650-0.680 EPS.

Here are the key takeaways from Digi International’s conference call:

• Q2 records — Digi reported a quarterly record $131 million revenue (up 25% YoY), an all-time high gross margin of 64%, and a record adjusted EBITDA margin of 26.3%.
• ARR momentum and guidance — Non-GAAP ARR was $184 million (up 50% YoY) and management guided to ~25% ARR growth for the year, projecting year-end ARR of about $190 million while reaffirming the long-term goal of reaching $200M ARR and $200M adjusted EBITDA.
• Strong cash generation — Operating cash flow was a quarterly record of $41 million (up 58% YoY), with cash conversion exceeding adjusted EBITDA and management using cash to pay down debt and fund acquisitions.
• Supply-chain and margin uncertainty — Management cited high memory pricing, freight cost pressure from geopolitical events, low-end channel inventories and potential Q4 mix effects that could create short-term margin variability despite long-term margin expansion expectations.

Digi International Price Performance

DGII traded up $0.41 on Wednesday, reaching $58.85. 263,431 shares of the company’s stock were exchanged, compared to its average volume of 257,145. The stock has a market cap of $2.21 billion, a PE ratio of 52.54 and a beta of 0.94. Digi International has a twelve month low of $27.71 and a twelve month high of $59.40. The stock’s fifty day moving average price is $51.81 and its 200-day moving average price is $45.81. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.24 and a quick ratio of 0.90.

Insider Buying and Selling

In other Digi International news, VP James E. Freeland sold 1,355 shares of Digi International stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $45.84, for a total transaction of $62,113.20. Following the transaction, the vice president directly owned 19,987 shares of the company’s stock, valued at $916,204.08. The trade was a 6.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Satbir Khanuja sold 6,000 shares of Digi International stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $46.00, for a total transaction of $276,000.00. Following the transaction, the director directly owned 85,298 shares in the company, valued at $3,923,708. This trade represents a 6.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 13,455 shares of company stock worth $616,357. 3.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Digi International

A number of institutional investors have recently bought and sold shares of the company. Ameriprise Financial Inc. raised its stake in Digi International by 7.7% during the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company’s stock worth $22,736,000 after purchasing an additional 46,659 shares during the period. GW&K Investment Management LLC purchased a new position in Digi International during the fourth quarter worth about $2,410,000. Campbell & CO Investment Adviser LLC raised its stake in Digi International by 65.0% during the fourth quarter. Campbell & CO Investment Adviser LLC now owns 47,468 shares of the technology company’s stock worth $2,055,000 after purchasing an additional 18,706 shares during the period. California State Teachers Retirement System raised its stake in Digi International by 9.9% during the third quarter. California State Teachers Retirement System now owns 37,001 shares of the technology company’s stock worth $1,349,000 after purchasing an additional 3,343 shares during the period. Finally, Millennium Management LLC raised its stake in Digi International by 138.3% during the fourth quarter. Millennium Management LLC now owns 19,055 shares of the technology company’s stock worth $825,000 after purchasing an additional 11,059 shares during the period. 95.90% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. Zacks Research upgraded shares of Digi International from a “strong sell” rating to a “hold” rating in a research report on Monday, April 6th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Digi International in a research report on Monday, March 23rd. Craig Hallum restated a “buy” rating and set a $50.00 price target on shares of Digi International in a research report on Thursday, February 5th. Finally, Wall Street Zen upgraded shares of Digi International from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 31st. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $49.80.

Digi International Company Profile

Digi International Inc is a provider of Internet of Things (IoT) connectivity products and services designed to link devices to networks and applications securely. The company develops a broad range of networking hardware, including cellular and Ethernet routers, gateways, embedded modules and adaptors, as well as accessories and antennas. Digi’s solutions enable businesses to deploy remote monitoring, control and automation systems across diverse industries such as transportation, utilities, healthcare, retail and industrial manufacturing.

In addition to its physical devices, Digi offers cloud-based management software and professional services that simplify device configuration, monitoring and over-the-air updates.