Digi International (NASDAQ:DGII) Issues Earnings Results

Digi International (NASDAQ:DGII) issued its quarterly earnings results on Wednesday. The technology company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.09, FiscalAI reports. The business had revenue of $138.67 million for the quarter, compared to analyst estimates of $132.57 million. Digi International had a net margin of 9.63% and a return on equity of 12.32%. The business’s revenue was up 29.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.53 earnings per share. Digi International updated its Q4 2026 guidance to 0.750-0.780 EPS.

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

• Record Q3 results: Revenue reached $139 million, up 29% year over year, while adjusted EBITDA rose to $40 million with a record 29.1% margin. Cash flow from operations increased 38% to $33 million.
• Full-year guidance was raised: Digi now expects fiscal 2026 revenue of $529 million to $533 million, adjusted EBITDA of $146 million to $147.5 million, adjusted EPS of $2.67 to $2.70, and ARR growth of at least 27%.
• Recurring revenue and balance-sheet trends remain strong: ARR reached a record $191 million, with management expecting to approach $193 million, while net debt declined to $81 million and leverage fell below one times.
• Management cited improving sales-cycle times, pipeline growth, AI-related infrastructure demand, and supply-chain urgency as business drivers, but said hyperscaler opportunities for Opengear remain difficult to predict and were excluded from guidance. Digi is also introducing its DANI AI tool within Digi Remote Manager, initially to improve customer adoption and support rather than generate separate revenue.

Digi International Stock Performance

Shares of NASDAQ DGII traded down $1.25 during trading hours on Friday, hitting $81.77. 189,803 shares of the company’s stock were exchanged, compared to its average volume of 336,595. Digi International has a 1-year low of $31.70 and a 1-year high of $86.84. The stock has a market capitalization of $3.08 billion, a price-to-earnings ratio of 64.89 and a beta of 0.97. The company’s 50-day moving average price is $68.90 and its 200-day moving average price is $58.13. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.11 and a quick ratio of 0.77.

Analyst Ratings Changes

DGII has been the subject of several recent analyst reports. Weiss Ratings raised shares of Digi International from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday. Craig Hallum lifted their price objective on Digi International from $50.00 to $75.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Zacks Research downgraded Digi International from a “strong-buy” rating to a “hold” rating in a research note on Monday. Stephens boosted their price objective on Digi International from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Roth Capital set a $90.00 price objective on shares of Digi International and gave the company a “buy” rating in a report on Thursday. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $82.40.

Insider Activity at Digi International

In other news, VP James E. Freeland sold 450 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $68.00, for a total transaction of $30,600.00. Following the sale, the vice president directly owned 19,219 shares in the company, valued at approximately $1,306,892. The trade was a 2.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Terrence G. Schneider sold 14,182 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $65.61, for a total transaction of $930,481.02. Following the completion of the sale, the vice president directly owned 26,759 shares in the company, valued at approximately $1,755,657.99. The trade was a 34.64% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 121,008 shares of company stock valued at $8,320,222. Company insiders own 3.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Ameriprise Financial Inc. lifted 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 buying an additional 46,659 shares during the period. Lazard Asset Management LLC lifted its holdings in shares of Digi International by 25.1% in the second quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock valued at $58,000 after purchasing an additional 339 shares in the last quarter. Russell Investments Group Ltd. raised its position in Digi International by 1,530.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company’s stock valued at $123,000 after buying an additional 3,169 shares during the last quarter. BNP Paribas Financial Markets grew its position in Digi International by 48.7% in the third quarter. BNP Paribas Financial Markets now owns 14,018 shares of the technology company’s stock valued at $511,000 after purchasing an additional 4,594 shares in the last quarter. Finally, Brooklyn Investment Group grew its stake in shares of Digi International by 3,880.3% in the third quarter. Brooklyn Investment Group now owns 5,652 shares of the technology company’s stock valued at $206,000 after buying an additional 5,510 shares in the last quarter. Institutional investors own 95.90% of the company’s stock.

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.