Digi International (NASDAQ:DGII) Releases Earnings Results, Beats Estimates By $0.09 EPS

Digi International (NASDAQ:DGII) released its earnings results on Wednesday. The technology company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.09, FiscalAI reports. Digi International had a return on equity of 11.28% and a net margin of 9.10%.The firm had revenue of $138.67 million for the quarter, compared to the consensus estimate of $132.57 million. During the same quarter in the previous year, the company posted $0.53 EPS. The company’s revenue for the quarter was up 29.0% compared to the same quarter last year. 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 Up 0.8%

NASDAQ:DGII traded up $0.61 during midday trading on Wednesday, reaching $72.75. 335,909 shares of the stock traded hands, compared to its average volume of 358,850. The stock has a market capitalization of $2.74 billion, a PE ratio of 64.38 and a beta of 0.97. Digi International has a 12-month low of $30.69 and a 12-month high of $76.41. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.77 and a current ratio of 1.11. The business has a 50-day moving average of $68.60 and a two-hundred day moving average of $57.86.

Insiders Place Their Bets

In other Digi International news, VP James E. Freeland sold 450 shares of the stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $68.00, for a total value of $30,600.00. Following the completion of the sale, the vice president directly owned 19,219 shares in the company, valued at approximately $1,306,892. This trade represents a 2.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO James J. Loch sold 100,000 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $69.44, for a total value of $6,944,000.00. Following the completion of the sale, the chief financial officer directly owned 167,589 shares of the company’s stock, valued at approximately $11,637,380.16. This represents a 37.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 121,008 shares of company stock worth $8,320,222 over the last quarter. Company insiders own 3.40% of the company’s stock.

Institutional Trading of Digi International

A number of institutional investors have recently bought and sold shares of the stock. Lazard Asset Management LLC grew its position in Digi International by 25.1% during the 2nd quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock worth $58,000 after purchasing an additional 339 shares during the last quarter. Russell Investments Group Ltd. raised its holdings in shares of Digi International by 1,530.9% in the third quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company’s stock worth $123,000 after buying an additional 3,169 shares during the last quarter. Brooklyn Investment Group raised its holdings 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 worth $206,000 after buying an additional 5,510 shares during the last quarter. Millennium Management LLC purchased a new stake in shares of Digi International during the third quarter valued at $292,000. Finally, Verity Asset Management Inc. purchased a new stake in shares of Digi International during the third quarter valued at $464,000. 95.90% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

DGII has been the topic of a number of recent analyst reports. Piper Sandler increased their target price on Digi International from $46.00 to $63.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Zacks Research lowered shares of Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday. Roth Capital restated a “buy” rating and issued a $70.00 target price on shares of Digi International in a research note on Thursday, May 7th. Craig Hallum raised their target price on shares of Digi International from $50.00 to $75.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Finally, Stephens boosted their price target on Digi International from $65.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, May 12th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $66.20.

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.