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Earnings analysis · 10-Q

DGII earnings analysis

Filed May 6, 2026 · Our reading of the company's report

The latest report

Digi International Inc. (DGII) reported Q2 2026 results with revenue of $128 million, exceeding estimates of $125.24 million, and diluted EPS of $0.60, surpassing expectations of $0.56. The company has revised its…

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Digi International Inc. (DGII) reported Q2 2026 results with revenue of $128 million, exceeding estimates of $125.24 million, and diluted EPS of $0.60, surpassing expectations of $0.56. The company has revised its forward guidance for the fiscal year 2026, projecting improved metrics across both revenue and EPS, indicating a positive outlook on growth opportunities.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

64% Gross margin Operating margin May 2025 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish May 2025 May 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$0.6
Gross margin
63.9%

What stood out

  • Revenue Exceeds Expectations

    Digi reported revenue of $128M in Q2 2026, surpassing consensus estimates of $125.24M.

  • EPS Beat Estimates

    Diluted EPS came in at $0.60, exceeding the forecast of $0.56.

  • Raised Full-Year Guidance

    The company raised its revenue guidance to a range of $520M to $540M and EPS guidance to $0.64 to $0.68.

  • Improved Gross Margin

    The gross margin increased to 63.9% compared to 62.4% in the prior quarter.

  • Strong Free Cash Flow

    Digi reported free cash flow of $35M for Q1 2026, indicating strong cash generation capacity.

  • Market Demand Strength

    Management cited increased customer demands and successful product launches as key growth drivers.

What to watch

  • Supply Chain Disruptions

    Ongoing stress in global supply chains could potentially impact inventory and production capabilities.

  • Market Competition

    Increased competition may adversely affect pricing power and market share.

  • Foreign Operations Risks

    Geopolitical tensions and regulatory changes may hinder international expansion and operations.

Management's outlook

Outlook improved due to positive market conditions and customer demand.

Earlier filings 4

10-Q · February 4, 2026

Digi International (DGII) reported Q1 2026 earnings with revenues of $122 million, a 7.0% increase from the previous quarter and 17.3% year-over-year growth. Gross and operating margins remained stable, with EPS at…

10-K · November 21, 2025

Digi International reported a 1.5% year-over-year revenue increase to $430 million in FY2025, driven by a 12.8% rise in its IoT Solutions segment, offset by a 2.0% decline in IoT Products & Services. Gross margins…

10-Q · August 6, 2025

Digi International Inc. reported strong earnings for Q3 2025, surpassing revenue and EPS expectations. Revenue increased 2.1% YoY to $108 million, while EPS rose to $0.53, marking a significant improvement from the…

10-Q · May 7, 2025

Digi International (DGII) reported solid Q2 results for the period ending March 31, 2025, with revenues of $105 million, marking a slight decrease from the previous quarter but an overall growth compared to the same…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.