| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 138.67 | 6.1% | 29.0% |
| Total Income | 138.67 | 6.1% | 29.0% |
| Expenditure | 115.78 | 1.9% | 25.1% |
| PBT | 21.26 | 43.5% | 52.3% |
| Net Profit | 15.74 | 39.3% | 53.7% |
| OPM | 16.51% | 3.45pp | 2.63pp |
| NPM | 11.35% | 2.71pp | 1.82pp |
| EPS | 0.42 | 40.0% | 50.0% |
Digi International Reports Q3 FY26 Results with Record Revenue and ARR
06 Aug 2026 · 6 Aug, 1:48 am
Summary
Digi International announced strong financial results for its third fiscal quarter ended June 30, 2026, setting new records for revenue and Annualized Recurring Revenue (ARR). Revenue increased by 29% year-over-year to $139 million, while ARR grew by 52% to $191 million. The company also reported a 54% increase in net income to $16 million and a 47% rise in Adjusted EBITDA to $40 million. Management highlighted strong execution, customer ROI, and the benefits of their recurring revenue model, leading to raised guidance for the full fiscal year 2026.
Key Highlights
- 1
Digi International reported record quarterly revenue of $139 million for the third fiscal quarter ended June 30, 2026, an increase of 29% year-over-year.
- 2
The company achieved a record end-of-quarter Annualized Recurring Revenue (ARR) of $191 million, marking a 52% increase year-over-year.
- 3
Net income for the third fiscal quarter was $16 million, a 54% increase compared to the prior year's quarter.
- 4
Gross profit margin improved to 64.8%, an increase of 130 basis points year-over-year.
- 5
Operating margin saw a significant increase of 260 basis points to 16.5%.
- 6
Adjusted EBITDA reached $40 million, up 47% year-over-year, demonstrating strong operational performance.
- 7
Cash flow from operations was $33 million in the third quarter of fiscal 2026, compared to $24 million in the prior year.
Management Comments
Ron Konezny
Digi set new records for revenue, end of quarter ARR, and profit in our fiscal third quarter. Growth in ARR reflects achieving ROI for our customers through remote presence and control over their mission-critical and business-critical assets. Strong execution across the Company is creating operating leverage. Cash generation remained strong in the quarter, further strengthening our balance sheet and enhancing our acquisition flywheel.
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