📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

Digi International Inc. provides business and mission-critical Internet of Things (IoT) connectivity products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding DGII

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	100.1K	$4.8M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q3 2025

Confident Specific

Management used concrete numbers (ARR at 30% of revenue, 25.6% EBITDA margin, $30M debt retired, 9% free cash flow yield) and repeated 'record' and 'strong' to describe performance. Language was forward-looking but cautious on macro and mix, e.g., 'a little bit cautious on the mix side.'

Q4 2025

Confident Specific

Management used definitive language such as 'record quarterly revenue', 'record ARR', 'strong finish', and gave explicit quantitative guidance for double-digit growth in ARR, revenue, and adjusted EBITDA in FY2026. They also reiterated long-term targets of $200M ARR and $200M adjusted EBITDA by FY2028, demonstrating clear conviction in the outlook.

Q1 2026

Confident Specific

Management repeatedly cited record financial metrics (revenue +18%, ARR +31%, EBITDA +23%, EBITDA margin 25.8%) and used phrases like 'strong start', 'broad-based strength', 'materializing' cross-sell, and 'confident' in FY2028 targets. Specific numbers and growth rates were provided throughout.

Q2 2026 latest

Confident Specific

Management repeatedly called out 'records' (revenue, gross margins, cash flow, EBITDA) and used phrases like 'phenomenal cash', 'team sport', 'building something special'. Language is direct with quantified achievements and forward-looking targets (ARR $190M year-end).

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is stronger after this call. Digi delivered record revenue, margins, cash flow, and ARR growth, with management confident in 25% ARR growth for the year. The AI narrative adds a credible new growth vector without diluting current profitability. The cash generation is exceptional (well above EBITDA), enabling aggressive debt paydown and positioning for future M&A. However, the implied Q4 EBITDA softness (due to mix and memory costs) and the still-murky channel inventory suggest near-term lumpiness. What to watch next quarter: whether ARR growth continues to accelerate, how Q4 EBITDA materializes, and any further color on AI-driven customer wins or new large deals from the Jolt-SmartSense combination.

AI-generated concall tone analysis · Updated 2026-06-09 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Digi International posts record Q2 FY2026: $131M revenue (up 25%), ARR $184M (up 50%), EBITDA $34M.

Revenue & Profitability

Revenue for Q2 2026 was a record $131 million, up 25% year-over-year. Gross margin reached an all-time high of 64%, up 190 basis points year-over-year. Adjusted EBITDA was a record $34 million, with margins of 26.3%. Cash flow from operations was also a record $41 million, up 58% year-over-year. ARR was $184 million, up 50% year-over-year. Net income and operating income figures were not explicitly provided; the company uses non-GAAP measures.

Outlook

Management sees accelerating customer behavior, with days to win shortening in certain areas, though not yet back to pre-COVID levels. Favorable conditions include a PMI above 50, strong performance in verticals like AI data centers, utilities, medical, and mass transit. The company expects 25% ARR growth for the full fiscal year, projecting year-end ARR of $190 million. Adjusted EBITDA targets for FY 2026 are at the midpoint of guidance, with an expectation of profits growing faster than revenue. However, management notes near-term uncertainty in memory costs and product mix.

Growth Drivers

Growth is driven by organic double-digit expansion (ARR and revenue) complemented by select acquisitions. ARR is the most important metric, indicating solution selling and recurring value. Key growth areas include SmartSense (food and healthcare) with added capabilities from Jolt (labeling, calendar, inventory management), Ventus within financial services, point-of-sale, lottery/gaming, and emerging applications like digital signage and unmanned kiosks. The integration of Jolt and Particle is accelerating customer acquisition, with a large new joint opportunity signed last quarter.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Gross margin of 64% is an all-time record, up 190 basis points year-over-year, driven by ARR mix and positive pricing impacts that offset memory cost increases. Jamie Loch stated that base gross margins are expected in the low to mid-60% range, with potential 15–25 basis points of improvement per quarter over the longer term as ARR grows. Near-term variability can occur due to one-time revenue and supply chain factors (e.g., memory, fuel surcharges). Adjusted EBITDA margin was 26.3%, also a record.

Key Risks

Management flagged supply chain volatility, including rising memory costs (especially for newest forms) and increased energy prices due to geopolitical conflict (Iran), impacting freight. Channel inventory is on the low end of the desired range, and distributors are cautious about extending without customer POs. U.S. regulations affecting consumer routers have not yet bled into industrial applications. The company has limited exposure to the federal market, thus avoiding some headwinds others face. Near-term guidance includes hedging against memory market uncertainty.

Generated by AI · Q2 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q3 2026 Q3 2026 2026-08-05

Record Q3 results with 29% revenue growth, strong ARR and EBITDA margins, and robust cash flow. Guidance for Q4 and full year raised, with continued operational leverage and successful acquisitions supporting growth.

Q2 2026 Q2 2026 2026-05-06

Record revenue and margins driven by ARR growth and successful integration of Jolt and Particle. Guidance projects continued ARR and EBITDA expansion, with margin variability expected due to product mix and supply chain factors.

Q1 2026 Q1 2026 2026-02-04

Record revenue and ARR growth were achieved, driven by strong performance across all segments and successful integration of recent acquisitions. Fiscal 2026 guidance anticipates double-digit growth, with continued margin expansion and prudent outlook amid market volatility.

Q4 2025 Q4 2025 2025-11-12

Record Q4 revenue and ARR growth were driven by strong execution and successful integration of Jolt Software. Fiscal 2026 guidance calls for double-digit growth in ARR, revenue, and adjusted EBITDA, with continued focus on acquisitions and expanding attach rates.

Q3 2025 Q3 2025 2025-08-06

Q3 2025 saw a return to year-over-year revenue growth, record ARR at 30% of revenues, and record adjusted EBITDA margin of 25.6%. Profitability and free cash flow improved, with strong performance in IT, utilities, and data centers, while M&A remains a capital priority.

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