Digi International (NASDAQ:DGII) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Digi International (NASDAQ:DGII) released its quarterly earnings results on Wednesday. The technology company reported $0.56 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01, FiscalAI reports. Digi International had a net margin of 9.48% and a return on equity of 10.88%. The business had revenue of $122.46 million for the quarter, compared to the consensus estimate of $115.90 million. During the same quarter last year, the firm earned $0.45 EPS. Digi International’s revenue for the quarter was up 17.9% on a year-over-year basis. Digi International updated its Q2 2026 guidance to 0.560-0.590 EPS.

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

• Digi reported a strong Q1 with record results — $122M revenue (+18% YoY), $157M ARR (+31% YoY), $32M adjusted EBITDA (+23% YoY), a record 25.8% adjusted EBITDA margin, and $36M cash generation.
• The January acquisition of Particle immediately adds ~$20M ARR and ~$13–14M revenue in FY26 (contributing $1–2M EBITDA this year and an expected $5M EBITDA in FY27), strengthening Digi’s edge-to-cloud and OEM embedded-as-a-service offering.
• Fiscal 2026 guidance calls for ARR growth ~23%, revenue growth 14–18%, adjusted EBITDA growth 17–21%, Q2 revenue of $124–128M, and adjusted EPS of $0.56–0.59 (the adjusted EPS now includes interest).
• Management warned of supply and pricing risk from AI-driven memory demand (DDR4/DDR5/MMC) that could pressure product costs or timing, though they plan to mitigate via alternate sourcing and protecting software/services revenue.
• Integration momentum continues — Jolt has been merged into SmartSense One with early cross-selling, AI capabilities are being embedded into products, and management is prioritizing acquisitions to help reach the company’s $200M ARR and $200M adjusted EBITDA targets by FY2028.

Digi International Stock Up 3.7%

DGII opened at $46.55 on Thursday. The business has a 50 day moving average of $43.86 and a 200-day moving average of $38.64. The stock has a market capitalization of $1.75 billion, a price-to-earnings ratio of 43.10 and a beta of 0.85. The company has a current ratio of 1.21, a quick ratio of 0.85 and a debt-to-equity ratio of 0.25. Digi International has a 1-year low of $22.39 and a 1-year high of $48.00.

Digi International News Roundup

Here are the key news stories impacting Digi International this week:

• Positive Sentiment: Revenue beat and year-over-year growth — Digi reported Q1 revenue of roughly $122.5M (up ~17.9% YoY) which topped consensus and the company described the quarter as record revenue driven by strength across its businesses. DGII Q1 Highlights
• Positive Sentiment: Raised guidance — Digi updated FY2026 revenue guidance to roughly $490.5M–$507.7M and issued Q2 EPS guidance of $0.560–$0.590 and revenue guidance above consensus ($124M–$128M vs est. ~$118M), which signals management sees continued top-line momentum. Press Release
• Neutral Sentiment: Analyst commentary mixed — Recent write‑ups summarize analysts’ views as varied: several firms have buy/overweight ratings and price targets cluster around the mid-$40s to $50s, but opinions differ on valuation and growth cadence. Analysts Offer Insights
• Neutral Sentiment: Earnings call and transcript available — Management discussed product mix, margin drivers and backlog on the call; read the transcript for details that may clarify forward execution risks vs. opportunity. Earnings Call Transcript
• Negative Sentiment: Market disappointment on EPS details — Although headline metrics beat, some data sources and reporting on diluted/GAAP EPS created confusion (different EPS figures were cited across outlets), which helped drive a pullback in the stock after hours. Shares Tumble Story
• Negative Sentiment: Insider selling and liability increase noted — Reports show recent insider sales and a year-over-year rise in total liabilities; investors may view these as governance or balance-sheet items to monitor. QuiverQuant Earnings Summary

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Zacks Research lowered Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Weiss Ratings reissued a “hold (c+)” rating on shares of Digi International in a research note on Wednesday, December 24th. Stephens boosted their target price on Digi International from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, January 2nd. Piper Sandler increased their price target on Digi International from $41.00 to $46.00 and gave the company a “neutral” rating in a report on Monday, January 5th. Finally, Roth Mkm lifted their price target on shares of Digi International from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Thursday, November 13th. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $48.80.

Insider Buying and Selling at Digi International

In other Digi International news, VP David H. Sampsell sold 22,222 shares of the stock in a transaction on Monday, November 17th. The shares were sold at an average price of $38.38, for a total value of $852,880.36. Following the completion of the sale, the vice president directly owned 31,749 shares of the company’s stock, valued at $1,218,526.62. This represents a 41.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Terrence G. Schneider sold 16,667 shares of the business’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $40.56, for a total transaction of $676,013.52. Following the transaction, the vice president owned 24,756 shares in the company, valued at approximately $1,004,103.36. The trade was a 40.24% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 56,572 shares of company stock valued at $2,256,580. Corporate insiders own 3.40% of the company’s stock.

Institutional Investors Weigh In On Digi International

A number of institutional investors have recently bought and sold shares of the business. Ameriprise Financial Inc. raised its stake in shares of Digi International by 7.7% in the 2nd 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 in the last quarter. Lazard Asset Management LLC raised its position in Digi International by 25.1% in the second 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 in the last quarter. Russell Investments Group Ltd. raised 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 worth $123,000 after buying an additional 3,169 shares in the last quarter. BNP Paribas Financial Markets lifted its position in shares of Digi International by 48.7% during the 3rd quarter. BNP Paribas Financial Markets now owns 14,018 shares of the technology company’s stock worth $511,000 after buying an additional 4,594 shares during the period. Finally, Brooklyn Investment Group boosted its stake in Digi International by 3,880.3% in the 3rd quarter. Brooklyn Investment Group now owns 5,652 shares of the technology company’s stock valued at $206,000 after buying an additional 5,510 shares in the last quarter. Institutional investors and hedge funds own 95.90% of the company’s stock.

Digi International Company Profile

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.