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Digi International Reports Fourth Fiscal Quarter and Full Year Fiscal 2026 Results

DGII
  • Digi International Inc. reported record quarterly revenue of $143 million for the fourth fiscal quarter ended September 30, 2026, representing a 25% increase year-over-year.
  • Annualized Recurring Revenue (ARR) reached a record $197 million at the end of the quarter, up 30% from the prior year.
  • Quarterly cash flow from operations was $42 million, a 50% increase compared to the same period in fiscal 2025.
  • Net income for the quarter was $15 million, or $0.38 per diluted share, both marking a 50% and 46% increase respectively compared to the prior year.
  • Adjusted net income for the quarter was $30 million, or $0.78 per diluted share, reflecting increases of 53% and 47% year-over-year.
  • Adjusted EBITDA for the quarter was $42 million, up 43% from the previous year.
  • For the full fiscal year 2026, revenue totaled $535 million, up 24%, while net income was $54 million, up 32%.
  • The IoT Products & Services segment generated $105 million in quarterly revenue, driven by organic growth and the Particle acquisition, with ARR for this segment reaching $64 million.
  • The IoT Solutions segment generated $38 million in quarterly revenue, primarily driven by the Jolt acquisition, with total segment ARR at $133 million.
  • Outstanding debt stood at $69 million with cash and cash equivalents at $30 million, resulting in a net debt position of $39 million.
  • Digi announced a definitive agreement to acquire Disruptive Technologies (DT) for $130 million in cash, pending regulatory approval expected before November 30, 2026.
  • Fiscal 2027 guidance anticipates revenue growth of 10-15%, adjusted EBITDA growth of 12.5-17.5%, and ARR growth of at least 15% compared to fiscal 2026.
  • First fiscal quarter 2027 revenue is estimated between $140 million and $144 million, with adjusted EBITDA between $39.5 million and $41.0 million.
  • A video conference call to discuss these results is scheduled for November 11, 2026, at 5:00 p.m. ET.