Digi International (NASDAQ:DGII) Announces Earnings Results, Beats Estimates By $0.04 EPS

Digi International (NASDAQ:DGII) announced its quarterly earnings results on Wednesday. The technology company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.04, FiscalAI reports. Digi International had a return on equity of 11.42% and a net margin of 9.10%.The company had revenue of $130.74 million for the quarter, compared to the consensus estimate of $125.03 million. During the same quarter in the previous year, the business earned $0.51 EPS. Digi International’s revenue 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 stock traded up $3.59 during trading on Friday, reaching $65.62. The company’s stock had a trading volume of 162,900 shares, compared to its average volume of 298,085. Digi International has a 1 year low of $30.69 and a 1 year high of $69.81. The company has a quick ratio of 0.90, a current ratio of 1.24 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $2.47 billion, a P/E ratio of 57.95 and a beta of 0.94. The company’s fifty day moving average is $52.08 and its 200-day moving average is $45.98.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on DGII. Weiss Ratings restated a “hold (c+)” rating on shares of Digi International in a report on Monday, March 23rd. Piper Sandler lifted their price objective on Digi International from $46.00 to $63.00 and gave the company a “neutral” rating in a research report on Thursday. Wall Street Zen raised Digi International from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 31st. Craig Hallum boosted their price target on Digi International from $50.00 to $75.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Stephens upped their price objective on Digi International from $55.00 to $65.00 and gave the company an “overweight” rating in a research report on Thursday. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $64.20.

Insider Buying and Selling at Digi International

In other news, Director Satbir Khanuja sold 6,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 10th. The shares were 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 of the company’s stock, valued at approximately $3,923,708. This trade represents a 6.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP James E. Freeland sold 1,355 shares of the firm’s stock in a transaction that occurred on Tuesday, February 10th. The stock was 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 in the company, valued at approximately $916,204.08. This trade represents a 6.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 13,455 shares of company stock valued at $616,357 in the last 90 days. Insiders own 3.40% of the company’s stock.

Hedge Funds Weigh In On Digi International

A number of institutional investors have recently modified their holdings of DGII. Ameriprise Financial Inc. increased its holdings in Digi International by 7.7% during 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 increased its holdings in shares of Digi International by 25.1% in the 2nd quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock valued at $58,000 after acquiring an additional 339 shares during the period. Russell Investments Group Ltd. increased its holdings in shares of 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 acquiring an additional 3,169 shares during the period. BNP Paribas Financial Markets raised its position in shares of Digi International by 48.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 14,018 shares of the technology company’s stock worth $511,000 after acquiring an additional 4,594 shares in the last quarter. Finally, Brooklyn Investment Group raised its position in shares of Digi International by 3,880.3% in the 3rd quarter. Brooklyn Investment Group now owns 5,652 shares of the technology company’s stock worth $206,000 after acquiring an additional 5,510 shares in the last quarter. 95.90% of the stock is owned by hedge funds and other institutional investors.

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.