The stock should react positively to the strong beat and raised guidance. Watch for sustained ARR growth above 25% and integration execution of Jolt/Particle. Any pullback on macro/tariff concerns could be a buying opportunity given the momentum.
Price Chart
Executive Summary
Digi International beat expectations with Q2 FY2026 adjusted EPS of $0.62 (vs consensus $0.48) on revenue of $130.7M (+25% YoY). The company raised full-year revenue growth guidance to 20-22% and adjusted EBITDA growth to 23-26%, driven by record ARR of $184M (+50% YoY) from the Jolt and Particle acquisitions. Strong cash flow from operations of $41M supports the acquisition flywheel strategy.
Key Financial Metrics
Key Facts
- Revenue $130.7M, +25% YoY (record)
- Adjusted EPS $0.62, +29% YoY, vs consensus $0.48 (beat by 29%)
- ARR $184M, +50% YoY (record)
- Adjusted EBITDA $34.4M, +32% YoY
- Operating cash flow $41M, +58% YoY (record)
- Full-year FY2026 revenue guidance raised to 20-22% growth; Q3 revenue guidance $130-$134M
- GAAP EPS $0.29 vs $0.28 YoY; net income $11.3M
- Gross margin expanded 190bps to 64.0%
Financial Impact
Adjusted EPS beat consensus by $0.14 (29%) on a $0.48 estimate, a material upside surprise. Raised guidance implies incremental revenue of ~$10M at midpoint vs prior expectations.
Risk Factors
- Integration risk from Jolt and Particle acquisitions
- Debt of $143M (net debt $111M) limits further large M&A
- Trade/tariff environment could impact hardware costs
- Customer concentration in IoT market
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000854775-26-000016 |
| Document: dgii-20260506.htm | 0000854775-26-000016 |
| Document: digiq2fy26investorpresen.htm | 0000854775-26-000016 |
| Document: 0000854775-26-000016-index-headers.html | 0000854775-26-000016 |
| Document: 0000854775-26-000016-index.html | 0000854775-26-000016 |
| Document: 0000854775-26-000016.txt | 0000854775-26-000016 |
| 8-K Data (Synthetic) | 0000854775-26-000016 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 31, 2026 8w ago | 8-K | $71.13 $76.23 | ▲ +7.17% | ▲ +6.85% | $79.11 (+11.21%) |
Jun 4, 2026 20w ago | Insider Cluster | $65.95 $73.22 | ▲ +11.02% | ▲ +9.16% | $79.11 (+19.95%) |
May 6, 2026 24w ago | 8-K | $62.03 $67.96 | ▲ +9.56% | ▲ +6.42% | $79.11 (+27.53%) |
Mar 5, 2026 33w ago | 8-K | $48.84 $50.56 | ▲ +3.52% | ▲ +5.57% | $79.11 (+61.97%) |
US Market Status
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