| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 130.74 | 6.8% | 25.1% |
| Total Income | 130.74 | 6.8% | 25.1% |
| Expenditure | 113.67 | 7.1% | 25.2% |
| PBT | 14.81 | 5.6% | 19.9% |
| Net Profit | 11.30 | 3.5% | 7.6% |
| OPM | 13.06% | 0.27pp | 0.08pp |
| NPM | 8.64% | 0.92pp | 1.40pp |
| EPS | 0.30 | 3.2% | 7.1% |
Digi International Reports Q2 FY2026: Revenue $131M, Up 25% YoY
07 May 2026 · 7 May, 1:48 am
Summary
Digi International reported strong second fiscal quarter 2026 results, with record revenue of $131 million, up 25% year-over-year. The company's ARR reached a record $184 million, a 50% increase year-over-year. Adjusted EBITDA increased by 32% to $34 million. The company is providing updated guidance for fiscal 2026, anticipating ARR growth of 25%, revenue growth of 20-22%, and adjusted EBITDA growth of 23-26% compared to fiscal 2025.
Key Highlights
- 1
Digi International reported a record quarterly revenue of $131 million, marking a 25% increase compared to the second fiscal quarter of 2025.
- 2
The company achieved a record end-of-quarter Annual Recurring Revenue (ARR) of $184 million, representing a 50% increase year-over-year.
- 3
Cash flow from operations reached a record $41 million in the second fiscal quarter of 2026.
- 4
Gross profit margin increased by 190 basis points to 64.0% in the second fiscal quarter of 2026.
- 5
Adjusted EBITDA was $34 million, reflecting a 32% increase compared to the prior year.
- 6
Revenue for the IoT Product & Services segment increased by 20% to $94 million in the second fiscal quarter of 2026.
- 7
The IoT Solutions segment's revenue increased by 39% to $37 million in the second fiscal quarter of 2026.
Management Comments
Ron Konezny
"Digi set new records for revenue, ARR, and profits in second fiscal quarter. Both of our reporting segments contributed with both organic and inorganic growth based on the successful integration of Jolt and Particle." "ARR growth reflects our customers' confidence in the recurring value of our solutions. Strong cash flow from operations underscores the capital efficiency of our business model and enables our acquisition flywheel. We are focused on our solution-oriented approach, driving real ROI for customers, and positioning Digi for continued long-term value creation."
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