Digi International Inc. (DGII) Earnings
Digi International Inc. is expected to report next earnings on August 5, 2026 (in NaN days), with a consensus EPS estimate of $0.67. DGII has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +5.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.58 | $0.62 | +6.9% | $131M | +4.6% |
| Feb 4, 2026 | $0.55 | $0.56 | +1.8% | $122M | -2.1% |
| Nov 12, 2025 | $0.51 | $0.56 | +9.8% | $114M | +0.9% |
| Aug 6, 2025 | $0.51 | $0.53 | +3.9% | $108M | -3.0% |
| Feb 5, 2025 | $0.50 | $0.50 | +0.0% | $104M | -0.2% |
| May 1, 2024 | $0.47 | $0.49 | +4.3% | $108M | -4.4% |
| Jan 31, 2024 | $0.45 | $0.48 | +6.7% | $106M | +0.5% |
| Nov 9, 2023 | $0.48 | $0.52 | +8.3% | $112M | +1.7% |
| Aug 3, 2023 | $0.47 | $0.50 | +6.4% | $112M | +1.4% |
| May 4, 2023 | $0.45 | $0.50 | +11.1% | $111M | +4.0% |
| Feb 2, 2023 | $0.40 | $0.48 | +20.0% | $109M | +6.1% |
| Nov 10, 2022 | $0.42 | $0.45 | +7.1% | $106M | +5.3% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · May 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Digi is in the industrial IoT market. Key attributes for customers are security, reliability, scalability, and ease. Utilizing AI, like the Model Context Protocol and SmartSense's AI tools. The DigiFly wheel includes strong organic growth (double digit growth), select acquisitions (11 over 11 years, monitoring 400 potential acquisition companies), and integration of acquired companies' cultures, systems, etc. Cash management is good, with cash from operations outpacing adjusted EBITDA year to date.
Guidance
Projected 25% ARR growth this year, ending the year at $190 million in ARR. Adjusted EBITDA has a 17% CAGR based on guidance midpoint. Though not yet at the $200 million ARR and adjusted EBITDA objectives, expected leverage to bottom line as revenue and ARR grow.
Segment performance
Digi participates in the industrial Internet of Things market. This quarter, revenue was $131 million, up 25% year over year, a quarterly record. Gross margins were 64%, up 190 basis points year over year, an all-time record. Cash flow from operations was $41 million, a quarterly record, up 58% year over year. Annualized recurring revenue (ARR) was $184 million, up 50% year over year. Adjusted EBITDA was $34 million, a record, with adjusted EBITDA margins of 26.3%, another quarterly record.
Risks & headwinds
Supply chain risks like Iran conflict affecting energy and freight costs, high memory prices. Regulatory risks such as U.S. regulations affecting consumer routers not yet bleeding into industrial applications. Limited exposure to federal market. Cost fluctuations like memory pricing impacting margins.
Analyst Q&A
Q: Tommy Moll asked about customer behavior acceleration anecdotes and data center impact.
A: Ron said it's a team effort, favorable market conditions, strong results in verticals like utilities, medical, mass transit, and AI traction. Jamie explained quarter间 EBITDA change may be due to certain costs in Q4 and mix potential.
Q: Timothy Shubsta asked about Particle and Jolt integrations and future investment areas.
A: Jolt integration went well, cultures and teams integrated, Particle acquisition is new with opportunities combining Digi and Particle products.
Q: Scott Searle asked about Particle quarter contribution, supply chain inventory, federal spend, and ARR demand trends.
A: Particle had about $4 million contribution in Q2. Channel inventory is low but improving. Supply chain handles availability. Not hugely exposed to federal market. SmartSense strong in food and healthcare, Ventus successful in financial services and new areas like digital signage.
Q: Ryan Bisson asked about long-term gross margin growth.
A: ARR growing faster than revenue, setting base camp in low to mid 60s, expecting 15 - 25 basis points improvement per quarter over time.