Digi International (NASDAQ:DGII) Issues Quarterly Earnings Results

Digi International (NASDAQ:DGII) released its earnings results on Wednesday. The technology company reported $0.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.02, reports. The company had revenue of $143.32 million for the quarter, compared to analysts’ expectations of $140.27 million. Digi International had a return on equity of 13.21% and a net margin of 10.03%. The firm’s quarterly revenue was up 25.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.26 EPS. Digi International updated its Q1 2027 guidance to 0.710-0.750 EPS.

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

• Digi reported record quarterly and full-year revenue, ARR, and adjusted EBITDA for fiscal 2026. Full-year revenue grew 24%, and management said operating leverage improved as operating expenses declined as a share of revenue.
• For fiscal 2027, Digi expects ARR growth of at least 15%, revenue growth of 10%–15%, and profit growth of 12.5%–17.5%; guidance includes the pending Disruptive Technologies acquisition. Management expects to reach its $200 million ARR goal in 2027, a year ahead of plan.
• Digi plans to acquire Disruptive Technologies for $130 million in cash, subject to regulatory approval, and expects the deal to add $9 million in adjusted EBITDA in fiscal 2028. The company intends to gradually shift the sensor business toward subscriptions, while noting that fiscal 2027 will be a transition year.
• Management cited supply-chain allocation and cost pressures, especially for memory and other components, as ongoing challenges; it is planning further ahead and selectively considering price increases. It expects gross margins to remain in the low-to-mid-60% range and said first-quarter adjusted EBITDA may decline sequentially partly due to margin mix and seasonality.
• Management said the opportunity pipeline is at its highest level to date and up double digits, with deal progression improving year over year. It also described broad-based Opengear growth, though a potential hyperscaler win remains uncertain.

Digi International Trading Down 12.7%

Shares of Digi International stock opened at $58.44 on Friday. Digi International has a 12-month low of $36.89 and a 12-month high of $86.84. The company has a current ratio of 1.13, a quick ratio of 0.78 and a debt-to-equity ratio of 0.16. The stock has a market cap of $2.22 billion, a PE ratio of 29.50 and a beta of 1.00. The company has a 50-day moving average of $72.31 and a two-hundred day moving average of $63.96.

Wall Street Analysts Forecast Growth

DGII has been the topic of a number of analyst reports. B. Riley Financial lifted their price target on Digi International from $78.00 to $86.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Weiss Ratings cut Digi International from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday. Stephens increased 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, August 6th. Zacks Research downgraded Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Finally, Piper Sandler decreased their target price on shares of Digi International from $76.00 to $67.00 and set a “neutral” rating on the stock in a research report on Thursday. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $80.60.

Digi International Company Profile

Digi International provides products and services for connecting, managing and securing devices used in the Internet of Things (IoT). Its offerings include cellular routers and gateways, embedded modules, console servers and other networking equipment, along with software and services for device management and remote monitoring. The company serves businesses and organizations across industries such as transportation, energy, healthcare, industrial automation and retail. Its solutions support deployments ranging from connected equipment and infrastructure to remote access and network management, with customers in markets around the world.