Digi International (DGII) Q4 2026 earnings summary

Executive summary

• FY26 was a record year: revenue rose 24% to $535.2M, Adjusted EBITDA rose 37% to $148.1M, and ARR grew 30% to $197M.

• Pipeline reached a record high and was up double digits; days to win improved YoY and sequentially but remained above pre-COVID levels.

• Customer focus centers on secure, reliable IoT solutions, expert support, and flexible self-managed or managed offerings; innovation investment is ~15% of revenue.

Financial highlights

• Q4 revenue was $143.3M, up 25% YoY; net income rose 50% to $14.9M and diluted EPS rose 46% to $0.38.

• Q4 adjusted net income was $30.5M, adjusted diluted EPS was $0.78, up 47%, and Adjusted EBITDA was $41.7M, up 43%.

• FY26 revenue was $535.2M, up 24%; net income was $53.7M, diluted EPS was $1.38, and Adjusted EBITDA was $148.1M, up 37%.

• Operating cash flow was $42M in Q4 and $152.9M for FY26; Q4 cash flow benefited primarily from deferred tax changes under the One Big Beautiful Bill Act.

Outlook and guidance

• FY27 guidance: ARR growth of at least 15%, revenue growth of 10%–15%, and Adjusted EBITDA growth of 12.5%–17.5%; includes Disruptive Technologies, assuming a Nov. 30 close.

• Q1 FY27 guidance: revenue of $140M–$144M, Adjusted EBITDA of $39.5M–$41.0M, and adjusted diluted EPS of $0.71–$0.75, based on 39.5M diluted shares.

• Q1 EPS guidance includes $0.02–$0.04 per share of interest expense; sequential Adjusted EBITDA dollars reflect seasonality, with margins nearer the middle of the target range.

• The $200M ARR goal is expected in FY27, a year early; the $200M Adjusted EBITDA goal remains on track for FY28, after a 15% CAGR through FY26 since the goal was set.