Business
Digi International Reports First Fiscal Quarter 2026 Results
Record Quarterly Revenue of $122M, End of Quarter ARR of $157M Cash Flow From Operations of $36M MINNEAPOLIS--(BUSINESS WIRE)-- Digi International Inc.
About this update from Digi International Inc.
[{"type":"text","content":"\nRecord Quarterly Revenue of $122M, End of Quarter ARR of $157M\n\n\nCash Flow From Operations of $36M\n\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nDigi International Inc. (\"Digi\" or the \"Company\") (Nasdaq: DGII), a leading global provider of business and mission-critical Internet of Things (\"IoT\") products, services and solutions, today announced its financial results for its first fiscal quarter ended December 31, 2025.\n\n\nFirst Fiscal Quarter 2026 Results Compared to First Fiscal Quarter 2025 Results1\n\n\n\nRevenue was $122 million, an increase of 18%.\n\n\n\n\nGross profit margin was 62.4%, an increase of 40 basis points.\n\n\n\n\nOperating margin was 13.3%, an increase of 40 basis points.\n\n\n\n\nNet income was $12 million, an increase of 16%.\n\n\n\n\nNet income per diluted share was $0.31, an increase of 15%.\n\n\n\n\nAdjusted net income was $21 million, an increase of 27%.\n\n\n\n\nEffective in the first fiscal quarter 2026, the Company has updated its calculation of adjusted net income and adjusted net income per share to include interest expense. Previously, interest was excluded from this non-GAAP measure as the Company operated without structural debt. Going forward, interest will be included to provide a more comprehensive view of operating performance and to align with evolving best practices. Adjusted net income per diluted share was $0.56, an increase of 24%, including a $0.06 impact from interest expense in both periods.\n\n\n\n\nAdjusted EBITDA was $32 million, an increase of 23%.\n\n\n\n\nAnnualized Recurring Revenue (ARR) was $157 million at quarter end, an increase of 31%.\n\n\n\n(1) Fiscal 2026 results include the results of Jolt.\n\n\nReconciliations of non-GAAP financial measures to their closest GAAP analogs appear at the end of this release, as well as a discussion of recent changes to the method of calculating adjusted net income and adjusted net income per share.\n\n\n“We’re off to a great start to our fiscal year 2026. Digi’s customer focus is shining through our IoT solutions that drive meaningful ROI. With the addition of Jolt, we delivered double digit growth in ARR, revenue, adjusted EBITDA, and adjusted EPS in our fiscal first quarter,” stated Ron Konezny, President and CEO. “We are thrilled to have the Particle team join the Digi family. Particle’s unique solutions build and manage connecte...