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

Digi International (NASDAQ:DGII) posted its quarterly earnings data on Wednesday. The technology company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.04, FiscalAI reports. Digi International had a return on equity of 10.93% and a net margin of 9.45%.The business had revenue of $130.74 million for the quarter, compared to analyst estimates of $125.03 million. During the same quarter in the prior year, the company earned $0.51 earnings per share. The company’s revenue was up 25.1% on a year-over-year basis. 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 Stock Up 0.7%

NASDAQ:DGII traded up $0.41 during trading hours on Wednesday, hitting $58.85. The company’s stock had a trading volume of 263,431 shares, compared to its average volume of 257,145. The stock has a market capitalization of $2.21 billion, a P/E ratio of 52.54 and a beta of 0.94. The stock has a fifty day moving average of $51.81 and a 200-day moving average of $45.81. The company has a current ratio of 1.24, a quick ratio of 0.90 and a debt-to-equity ratio of 0.21. Digi International has a 52-week low of $27.71 and a 52-week high of $59.40.

Insider Activity at Digi International

In related news, VP James E. Freeland sold 1,355 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $45.84, for a total value of $62,113.20. Following the transaction, the vice president owned 19,987 shares of the company’s stock, valued at $916,204.08. This represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP David H. Sampsell sold 5,000 shares of the stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $45.74, for a total value of $228,700.00. Following the completion of the transaction, the vice president directly owned 24,740 shares in the company, valued at $1,131,607.60. This trade represents a 16.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 13,455 shares of company stock valued at $616,357 over the last quarter. 3.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Digi International

Several large investors have recently bought and sold shares of DGII. GW&K Investment Management LLC acquired a new position in Digi International in the fourth quarter valued at $2,410,000. Ameriprise Financial Inc. boosted its stake in Digi International by 7.7% in the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company’s stock valued at $22,736,000 after acquiring an additional 46,659 shares in the last quarter. Campbell & CO Investment Adviser LLC boosted its stake in Digi International by 65.0% in the fourth quarter. Campbell & CO Investment Adviser LLC now owns 47,468 shares of the technology company’s stock valued at $2,055,000 after acquiring an additional 18,706 shares in the last quarter. Verity Asset Management Inc. acquired a new position in Digi International in the third quarter valued at $464,000. Finally, Millennium Management LLC boosted its stake in Digi International by 138.3% in the fourth quarter. Millennium Management LLC now owns 19,055 shares of the technology company’s stock valued at $825,000 after acquiring an additional 11,059 shares in the last quarter. Institutional investors and hedge funds own 95.90% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on DGII shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Digi International in a research report on Monday, March 23rd. Wall Street Zen raised Digi International from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 31st. Zacks Research raised Digi International from a “strong sell” rating to a “hold” rating in a research report on Monday, April 6th. Finally, Craig Hallum reaffirmed a “buy” rating and set a $50.00 price objective on shares of Digi International in a research report on Thursday, February 5th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $49.80.

About Digi International

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.