Business
Digi International Reports Second Fiscal Quarter 2025 Results
Growing Profit Margins, Cash Flow from Operations of $26M Revenue of $105M, Record End of Quarter ARR of $123M MINNEAPOLIS--(BUSINESS WIRE)-- Digi
About this update from Digi International Inc.
[{"type":"text","content":"\nGrowing Profit Margins, Cash Flow from Operations of $26M\n\nRevenue of $105M, Record End of Quarter ARR of $123M\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 second fiscal quarter ended March 31, 2025.\n\nSecond Fiscal Quarter 2025 Results Compared to Second Fiscal Quarter 2024 Results\n\n\nRevenue was $105 million, a decrease of 3%.\n\n\n\nGross profit margin was 62.1%, an increase of 420 basis points.\n\n\n\nNet income was $10 million, compared to $4 million.\n\n\n\nNet income per diluted share was $0.28, compared to $0.11.\n\n\n\nAdjusted net income per diluted share was $0.51, compared to $0.49.\n\n\n\nAdjusted EBITDA was $26 million, an increase of 9%.\n\n\n\nAnnualized Recurring Revenue (ARR) was $123 million at quarter end, an increase of 12%.\n\n\nReconciliations of non-GAAP financial measures to their closest GAAP analogues appear at the end of this release.\n\n“In what seems to be an increasingly uncertain and rapidly changing marketplace, Digi has stayed focused on the execution of our solution oriented approach,” stated Ron Konezny, President and CEO. “This focus generated 12% year over year growth in ARR for the quarter and sustained our profitability. Our solutions strategy delivers real ROI for customers at a time when they need it the most. Our strong cash generation in the quarter paid down $25 million of debt, improving our forecast of no net debt from end of the calendar year to the end of our fiscal year. We believe Digi’s resiliency and adaptability, strengthened over our forty-year history, will prove invaluable as we navigate current and potential tariffs as well as the evolving global political and economic climate.”\n\nAdditional Financial Highlights\n\n\nWe made payments against our revolving credit facility, reducing our outstanding debt to $70.0 million at quarter end, with a cash and cash equivalents balance of $26.3 million resulting in a debt net of cash and cash equivalents of $43.7 million.\n\n\n\nWe had $1.3 million of interest expense in the second quarter of fiscal 2025, compared to $3.7 million in the second quarter of fiscal 2024. The decrease was driven by decrea...