Loading...
•
Dec 31, 2025
Digi Q1 2026 Earnings Report
Digi International reported its first fiscal quarter 2026 results, showcasing record quarterly revenue and strong growth in key metrics.
Key Takeaways
Digi International delivered a strong first fiscal quarter for 2026, with revenue reaching a record $122 million, an 18% increase year-over-year. The company also reported a significant increase in Adjusted EBITDA to $31.56 million and a 27% rise in Adjusted Net Income to $21 million. Diluted EPS stood at $0.31, with Adjusted EPS at $0.56, reflecting solid operational performance and the positive impact of recent acquisitions.
Record quarterly revenue of $122 million, an 18% increase from the prior year.
Adjusted EBITDA increased by 23% to $31.56 million, representing 25.8% of total revenue.
Annualized Recurring Revenue (ARR) grew by 31% to $157 million at quarter end.
Net income per diluted share was $0.31, a 15% increase, and adjusted net income per diluted share was $0.56, a 24% increase.
Revenue by Segment
Forward Guidance
Digi International anticipates continued growth in fiscal year 2026, driven by the expansion of software applications, AI adoption, and strategic acquisitions. The company expects ARR growth of 23%, revenue growth of 14%-18%, and Adjusted EBITDA growth of 17-21% for the full fiscal year. For the second fiscal quarter, revenues are estimated to be between $124 million and $128 million, with Adjusted EBITDA between $31.5 million and $33.0 million.
Positive Outlook
- Anticipated ARR growth of 23% for fiscal year 2026.
- Projected revenue growth of 14%-18% for fiscal year 2026.
- Expected Adjusted EBITDA growth of 17-21% for fiscal year 2026.
- Particle acquisition expected to add approximately $20 million to ARR and $13-$14 million to revenue for FY26.
- Continued focus on scale and Annualized Recurring Revenue (ARR) through disciplined capital allocation and strategic acquisitions.
Challenges Ahead
- Guidance for Adjusted net income per share and Adjusted EBITDA targets are on a non-GAAP basis and not reconciled to GAAP measures due to inherent uncertainties.
- Numerous items, including foreign exchange translation, restructuring, interest, and tax-related events, could significantly impact U.S. GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...