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Sep 30
Digi Q4 2025 Earnings Report
Digi International reported a strong Q4 with record revenue and ARR, though net income declined year-over-year.
Key Takeaways
Digi International posted record Q4 revenue of $114 million and strong growth in ARR, reaching $152 million. Adjusted EPS rose to $0.56 while net income declined to $10 million. The IoT Solutions segment led growth, driven by the Jolt acquisition and strong SmartSense performance.
Record Q4 revenue of $114 million, up 9% year-over-year
Adjusted EPS rose to $0.56, while net income dropped to $10 million
ARR reached $152 million, comprising 35% of total revenue
IoT Solutions revenue rose 23% in Q4, driven by Jolt acquisition and SmartSense growth
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Products & Services Revenue
CapyFin.comIoT Solutions Revenue
CapyFin.com Forward Guidance
Digi expects Q1 FY26 revenue of $114M–$118M and adjusted EPS of $0.53–$0.57. ARR is projected to grow ~10% and Adjusted EBITDA 15–20% for FY26.
Positive Outlook
- ARR expected to grow ~10% in FY26
- Adjusted EBITDA projected to grow 15–20%
- Q1 FY26 revenue projected at $114M–$118M
- Strong demand for hardware-enabled software solutions
- Focus on acquisitions to accelerate ARR and EBITDA growth
Challenges Ahead
- Geopolitical risks may impact global operations
- Ongoing inflationary and deflationary pressures globally
- Longer-than-expected sales cycles possible
- Supply chain challenges remain a risk
- Potential regulatory changes could affect compliance
Revenue & Expenses
Visualization of income flow from segment revenue to net income