Quarterly ResultMay 6, 2026, 04:18 PM
Digi International Q2 Revenue $131M, ARR $184M, Cash Flow $41M
AI Summary
Digi International reported record financial results for its second fiscal quarter ended March 31, 2026, with revenue increasing 25% to $131 million and Annualized Recurring Revenue (ARR) growing 50% to $184 million. The company also achieved record cash flow from operations of $41 million, up 58%. These results were driven by both organic growth and contributions from the Jolt and Particle acquisitions, with updated fiscal 2026 guidance reflecting continued momentum.
Key Highlights
- Record Q2 revenue of $131 million, an increase of 25% year-over-year.
- Record end-of-quarter Annualized Recurring Revenue (ARR) of $184 million, up 50%.
- Record cash flow from operations of $41 million, an increase of 58% year-over-year.
- Adjusted EBITDA grew 32% to $34 million; adjusted net income increased 33% to $24 million.
- IoT Product & Services revenue rose 20% to $94 million, with ARR up 104% to $57 million.
- IoT Solutions revenue increased 39% to $37 million, with ARR up 34% to $127 million.
- Updated FY26 guidance: ARR growth 25%, revenue growth 20-22%, Adjusted EBITDA growth 23-26%.
- Q3 FY26 revenue estimated between $130 million and $134 million.