Digi International (DGII) investor relations material

Executive summary

• Achieved record Q3 2026 revenue of $139 million, up 29% year-over-year, with net income of $16 million (up 54%), and diluted EPS of $0.40 (up 48%).

• Annualized Recurring Revenue (ARR) reached $191 million, up 52% year-over-year, driven by acquisitions and organic growth.

• Adjusted EBITDA was $40 million (up 47%), with a record margin of 29.1%.

• Strong operational and financial performance supported by successful integration of Jolt and Particle acquisitions.

• Continued focus on remote asset management, security, and AI-driven solutions, including the launch of DANI for enhanced operational efficiency.

Financial highlights

• Q3 revenue: $139 million, up 29% year-over-year; nine-month revenue: $391.9 million, up 24.1%.

• Gross margin: 64.8%, up 130 basis points; operating margin: 16.5%, up 260 basis points.

• Cash flow from operations: $33 million for Q3 (up 38%); $110.4 million for nine months.

• Adjusted net income per diluted share: $0.75, up 47% year-over-year.

• Net debt at quarter end: $81 million; cash and cash equivalents: $28 million; outstanding debt: $109 million.

Outlook and guidance

• Q4 revenue guidance: $138–$142 million; adjusted EBITDA: $40–$41.5 million; adjusted EPS: $0.75–$0.78.

• Full-year 2026 revenue guidance: $529–$533 million, up 23–24% year-over-year; adjusted EBITDA: $146–$147.5 million, up 35–36%; adjusted EPS: $2.67–$2.70.

• Fiscal 2026 ARR growth expected at least 27% year-over-year.

• Management expects continued growth in ARR, adjusted net income, adjusted EBITDA, and cash flow.

• Company anticipates positive cash flows and sufficient liquidity for the next 12 months and beyond.