Gross margins have expanded to a peak of 64.0% in 2026Q2, reflecting a successful shift toward higher-value proprietary modules despite rising SG&A expenses of $47.3 million.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 475.06M | 430.22M | 424.05M | 444.85M | 388.23M | 308.63M | 279.27M | 254.2M | 228.37M | 181.63M | 203M | 212.86M | 192.7M | 195.38M | 190.56M | 204.16M | 182.55M | 165.93M | 185.06M | 173.26M | 144.66M | 125.2M | 111.23M | 102.93M | 101.54M | 130.4M | 132.52M | 193.5M | 182.9M | 165.6M | 195.8M |
| Revenue Growth % | 13.48% | 1.46% | -4.68% | 14.59% | 25.79% | 10.51% | 9.86% | 11.31% | 25.73% | -10.53% | -4.63% | 10.46% | -1.37% | 2.53% | -6.66% | 11.84% | 10.02% | -10.34% | 6.81% | 19.77% | 15.55% | 12.56% | 8.06% | 1.37% | -22.14% | -1.6% | -31.51% | 5.8% | 10.45% | -15.42% | 18.67% |
| Cost of Goods Sold | 173.65M | 159.54M | 174.14M | 192.65M | 171.94M | 141.97M | 135.3M | 135.17M | 119.48M | 94.46M | 103.33M | 114.83M | 102.22M | 95.26M | 90.22M | 97.57M | 90.34M | 84.66M | 87.19M | 81.92M | 67.16M | 49.52M | 43.44M | 41.58M | 46.01M | 66.19M | 50.11M | 76.5M | 80.8M | 78.8M | 86.8M |
| COGS % of Revenue | - | 37.08% | 41.07% | 43.31% | 44.29% | 46% | 48.45% | 53.17% | 52.32% | 52.01% | 50.9% | 53.95% | 53.04% | 48.75% | 47.35% | 47.79% | 49.49% | 51.02% | 47.11% | 47.28% | 46.42% | 39.55% | 39.06% | 40.4% | 45.32% | 50.76% | 37.81% | 39.53% | 44.18% | 47.58% | 44.33% |
| Gross Profit | 301.41M | 270.68M | 249.91M | 252.2M | 216.29M | 166.66M | 143.97M | 119.03M | 108.88M | 87.17M | 99.68M | 98.03M | 90.48M | 100.12M | 100.34M | 106.59M | 92.21M | 81.27M | 97.87M | 91.35M | 77.5M | 75.68M | 67.78M | 61.35M | 55.52M | 64.21M | 82.41M | 117M | 102.1M | 86.8M | 109M |
| Gross Margin % | 63.45% | 62.92% | 58.93% | 56.69% | 55.71% | 54% | 51.55% | 46.83% | 47.68% | 47.99% | 49.1% | 46.05% | 46.96% | 51.24% | 52.65% | 52.21% | 50.51% | 48.98% | 52.89% | 52.72% | 53.58% | 60.45% | 60.94% | 59.6% | 54.68% | 49.24% | 62.19% | 60.47% | 55.82% | 52.42% | 55.67% |
| Gross Profit Growth % | - | 8.31% | -0.91% | 16.61% | 29.78% | 15.76% | 20.95% | 9.32% | 24.9% | -12.55% | 1.68% | 8.34% | -9.63% | -0.21% | -5.86% | 15.59% | 13.47% | -16.97% | 7.14% | 17.86% | 2.41% | 11.65% | 10.49% | 10.49% | -13.53% | -22.08% | -29.56% | 14.59% | 17.63% | -20.37% | 21.79% |
| Operating Expenses | 238.81M | 214.39M | 201.82M | 202.11M | 178.07M | 156.13M | 132.66M | 108.96M | 106.26M | 75.85M | 81.83M | 91.11M | 90.28M | 92.26M | 88.2M | 89.4M | 82.72M | 76.24M | 79.95M | 71.02M | 62.28M | 58.42M | 56M | 55.67M | 70.44M | 66.42M | 88.1M | 108.8M | 78M | 80.7M | 88.9M |
| OpEx % of Revenue | - | 49.83% | 47.59% | 45.43% | 45.87% | 50.59% | 47.5% | 42.86% | 46.53% | 41.76% | 40.31% | 42.8% | 46.85% | 47.22% | 46.28% | 43.79% | 45.32% | 45.95% | 43.21% | 40.99% | 43.05% | 46.67% | 50.35% | 54.09% | 69.38% | 50.94% | 66.48% | 56.23% | 42.65% | 48.73% | 45.4% |
| Selling, General & Admin | 169.07M | 150.73M | 141.53M | 143.46M | 129.17M | 103.73M | 88.9M | 71.49M | 73.08M | 47.29M | 50.87M | 59.06M | 60.49M | 61.94M | 55.34M | 55.07M | 52.07M | 47.09M | 52.91M | 46.84M | 41.42M | 41.89M | 38.84M | 40.26M | 48.36M | 46.97M | 55.16M | 65.3M | 53.3M | 56M | 62M |
| SG&A % of Revenue | - | 35.03% | 33.38% | 32.25% | 33.27% | 33.61% | 31.83% | 28.12% | 32% | 26.03% | 25.06% | 27.75% | 31.39% | 31.7% | 29.04% | 26.97% | 28.52% | 28.38% | 28.59% | 27.04% | 28.63% | 33.46% | 34.92% | 39.11% | 47.63% | 36.02% | 41.62% | 33.75% | 29.14% | 33.82% | 31.66% |
| Research & Development | 69.74M | 63.66M | 60.29M | 58.65M | 55.1M | 46.62M | 43.77M | 37.56M | 33.18M | 28.57M | 30.95M | 32.05M | 29.79M | 30.33M | 30.77M | 31.64M | 27.82M | 26.38M | 27.04M | 24.18M | 20.86M | 16.53M | 17.16M | 15.97M | 19.53M | 18.33M | 20.17M | 24.7M | 17M | 18M | 20.6M |
| R&D % of Revenue | - | 14.8% | 14.22% | 13.18% | 14.19% | 15.11% | 15.67% | 14.78% | 14.53% | 15.73% | 15.25% | 15.06% | 15.46% | 15.52% | 16.15% | 15.5% | 15.24% | 15.9% | 14.61% | 13.95% | 14.42% | 13.2% | 15.43% | 15.51% | 19.23% | 14.06% | 15.22% | 12.76% | 9.29% | 10.87% | 10.52% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | -6.2M | 5.77M | -11K | -87K | 48K | 76K | -669K | 0 | 501K | 523K | 2.1M | 2.69M | 2.83M | 2.77M | 0 | 0 | 0 | 0 | 0 | -553.39K | 2.55M | 1.12M | 12.76M | 18.8M | 7.7M | 6.7M | 6.3M |
| Operating Income | 62.6M | 56.29M | 48.09M | 50.09M | 38.22M | 10.53M | 11.32M | -3.32M | 2.32M | 13.84M | 17.11M | 6.42M | 883K | 7.55M | 10.88M | 17.04M | 9.95M | 6.91M | 16.02M | 20.33M | 13.22M | 16.96M | 11.78M | 5.67M | -6.86M | -1.44M | 9.79M | 8.2M | 24.1M | 6.1M | 20.1M |
| Operating Margin % | 13.18% | 13.08% | 11.34% | 11.26% | 9.84% | 3.41% | 4.05% | -1.31% | 1.02% | 7.62% | 8.43% | 3.01% | 0.46% | 3.86% | 5.71% | 8.34% | 5.45% | 4.17% | 8.65% | 11.73% | 9.14% | 13.54% | 10.59% | 5.51% | -6.76% | -1.1% | 7.39% | 4.24% | 13.18% | 3.68% | 10.27% |
| Operating Income Growth % | - | 17.05% | -4% | 31.07% | 263.03% | -6.97% | 440.46% | -243.15% | -83.22% | -19.11% | 166.56% | 626.73% | -88.3% | -30.64% | -36.13% | 71.17% | 43.98% | -56.83% | -21.22% | 53.73% | -22.02% | 43.94% | 107.64% | 182.71% | -378.05% | -114.65% | 19.44% | -65.98% | 295.08% | -69.65% | -26.64% |
| EBITDA | 90.49M | 90.27M | 81.15M | 84.05M | 75.79M | 31.41M | 30.62M | 10.07M | 15.11M | 19.33M | 21.72M | 13.29M | 8.03M | 16.47M | 21.46M | 27.21M | 18.8M | 16.97M | 29.64M | 30.49M | 27.96M | 26.88M | 20.85M | 15.98M | 4.71M | 8.46M | 22.55M | 27.3M | 31.8M | 12.8M | 29.7M |
| EBITDA Margin % | 19.05% | 20.98% | 19.14% | 18.89% | 19.52% | 10.18% | 10.96% | 3.96% | 6.61% | 10.64% | 10.7% | 6.25% | 4.17% | 8.43% | 11.26% | 13.33% | 10.3% | 10.23% | 16.02% | 17.6% | 19.33% | 21.47% | 18.74% | 15.52% | 4.64% | 6.49% | 17.02% | 14.11% | 17.39% | 7.73% | 15.17% |
| EBITDA Growth % | 1.94% | 11.23% | -3.45% | 10.9% | 141.34% | 2.58% | 203.97% | -33.32% | -21.87% | -10.98% | 63.37% | 65.57% | -51.25% | -23.27% | -21.11% | 44.72% | 10.79% | -42.74% | -2.8% | 9.07% | 4.02% | 28.94% | 30.48% | 239.35% | -44.37% | -62.48% | -17.39% | -14.15% | 148.44% | -56.9% | 3.13% |
| D&A (Non-Cash Add-back) | 27.89M | 33.98M | 33.06M | 33.96M | 37.57M | 20.88M | 19.3M | 13.4M | 12.78M | 5.5M | 4.61M | 6.88M | 7.15M | 8.92M | 10.58M | 10.17M | 8.85M | 10.06M | 13.62M | 10.16M | 14.73M | 9.92M | 9.06M | 10.3M | 11.57M | 9.9M | 12.76M | 19.1M | 7.7M | 6.7M | 9.6M |
| EBIT | 60.8M | 50.1M | 38.27M | 50.15M | 38.32M | 10.38M | 11.05M | 11.25M | 3.27M | 9.49M | 16.98M | 13.12M | 5.07M | 9.92M | 10.92M | 16.6M | 10.66M | 4.54M | 17.91M | 20.33M | 15.22M | 17.26M | 11.78M | 5.67M | -14.92M | -2.21M | -5.68M | 8.2M | 24.1M | 6.1M | 20.2M |
| Net Interest Income | -2.77M | -6.32M | -15.41M | -25.24M | -19.69M | -1.39M | -3.29M | 631K | 420K | 608K | 254K | 214K | 171K | 168K | 266K | 165K | 217K | 1.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 11K | 10K | 304K | 733K | 445K | 656K | 545K | 218K | 176K | 210K | 289K | 251K | 355K | 1.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.77M | 6.32M | 15.41M | 25.24M | 19.7M | 1.4M | 3.59M | 102K | 25K | 48K | 291K | 4K | 5K | 42K | 23K | 86K | 138K | 257K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -7.3M | -6.37M | -25.23M | -25.18M | -19.59M | -1.53M | -3.85M | 1.07M | 468K | -4.35M | -415K | 2.23M | -3.59M | 691K | 16K | -522K | 566K | 1.21M | 2.9M | 3.4M | 2.04M | 1.03M | 369K | 296K | 1.26M | 2.4M | -15.48M | -200K | -37.1M | -21.8M | -3.4M |
| Pretax Income | 55.3M | 49.92M | 22.86M | 24.92M | 18.63M | 9M | 7.46M | 11.14M | 2.79M | 9.49M | 16.69M | 8.64M | 797K | 8.24M | 10.9M | 16.52M | 10.52M | 4.28M | 18.91M | 23.72M | 15.27M | 17.98M | 12.15M | 6.57M | -19.46M | 184.37K | -21.16M | 8M | -13M | -15.7M | 16.8M |
| Pretax Margin % | 11.64% | 11.6% | 5.39% | 5.6% | 4.8% | 2.92% | 2.67% | 4.38% | 1.22% | 5.23% | 8.22% | 4.06% | 0.41% | 4.22% | 5.72% | 8.09% | 5.76% | 2.58% | 10.22% | 13.69% | 10.55% | 14.36% | 10.92% | 6.38% | -19.17% | 0.14% | -15.97% | 4.13% | -7.11% | -9.48% | 8.58% |
| Income Tax | 12.06M | 9.11M | 353K | 148K | -755K | -1.37M | -948K | 1.19M | 1.49M | 125K | 3.21M | 2.06M | -954K | 2.43M | 3.28M | 5.5M | 1.58M | 199K | 6.56M | 3.95M | 4.15M | 318K | 3.49M | -22.74K | -6.67M | 65.82K | -4.34M | 4.8M | 9.7M | 100K | 7.5M |
| Effective Tax Rate % | 21.81% | 18.26% | 1.54% | 0.59% | -4.05% | -15.19% | -12.7% | 10.65% | 53.3% | 1.32% | 19.25% | 23.79% | -119.7% | 29.53% | 30.12% | 33.28% | 15% | 4.65% | 34.7% | 16.65% | 27.21% | 1.77% | 28.7% | -0.35% | 34.3% | 35.7% | 20.5% | 60% | -74.62% | -0.64% | 44.64% |
| Net Income | 43.24M | 40.8M | 22.5M | 24.77M | 19.38M | 10.37M | 8.41M | 9.96M | 1.3M | 9.37M | 16.71M | 6.59M | 1.75M | 5.8M | 7.62M | 11.02M | 8.94M | 4.08M | 12.35M | 19.77M | 11.11M | 17.66M | 8.66M | 6.59M | -12.78M | 118.55K | -16.82M | 3.2M | -22.7M | -15.8M | 9.3M |
| Net Margin % | 9.1% | 9.48% | 5.31% | 5.57% | 4.99% | 3.36% | 3.01% | 3.92% | 0.57% | 5.16% | 8.23% | 3.09% | 0.91% | 2.97% | 4% | 5.4% | 4.9% | 2.46% | 6.67% | 11.41% | 7.68% | 14.11% | 7.79% | 6.4% | -12.59% | 0.09% | -12.7% | 1.65% | -12.41% | -9.54% | 4.75% |
| Net Income Growth % | 2.59% | 81.31% | -9.14% | 27.79% | 86.99% | 23.24% | -15.54% | 664.24% | -86.09% | -43.94% | 153.61% | 276.24% | -69.84% | -23.77% | -30.89% | 23.24% | 118.98% | -66.94% | -37.54% | 77.93% | -37.09% | 103.91% | 31.42% | 151.56% | -10884.44% | 100.7% | -625.77% | 114.1% | -43.67% | -269.89% | -51.81% |
| Net Income (Continuing) | 43.24M | 40.8M | 22.5M | 24.77M | 19.38M | 10.37M | 8.41M | 9.96M | 1.63M | 9.37M | 13.48M | 9.43M | 4.49M | 5.8M | 7.62M | 11.02M | 8.94M | 4.08M | 12.35M | 19.77M | 11.11M | 17.66M | 8.66M | 6.59M | -12.78M | 118.55K | -16.82M | 3.2M | -22.7M | -15.8M | 9.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.12 | 1.08 | 0.61 | 0.67 | 0.54 | 0.31 | 0.28 | 0.35 | 0.05 | 0.35 | 0.64 | 0.26 | 0.07 | 0.22 | 0.29 | 0.43 | 0.36 | 0.16 | 0.47 | 0.76 | 0.46 | 0.76 | 0.39 | 0.31 | -0.65 | 0.01 | -1.12 | 0.22 | -1.65 | -1.18 | 0.68 |
| EPS Growth % | 117.31% | 77.05% | -8.96% | 24.07% | 74.19% | 10.71% | -20% | 643.1% | -86.54% | -45.31% | 146.15% | 271.43% | -68.18% | -24.14% | -32.56% | 19.44% | 125% | -65.96% | -38.16% | 65.22% | -39.47% | 94.87% | 25.81% | 147.69% | - | 100.7% | -609.09% | 113.33% | -39.83% | -273.53% | -50.72% |
| EPS (Basic) | - | 1.10 | 0.62 | 0.69 | 0.55 | 0.32 | 0.29 | 0.36 | 0.05 | 0.35 | 0.65 | 0.27 | 0.07 | 0.22 | 0.30 | 0.44 | 0.36 | 0.16 | 0.48 | 0.78 | 0.48 | 0.79 | 0.41 | 0.31 | -0.65 | 0.01 | -1.12 | 0.22 | -1.65 | -1.18 | 0.70 |
| Diluted Shares Outstanding | 38.48M | 37.74M | 36.98M | 36.87M | 35.99M | 33.39M | 29.55M | 28.55M | 27.65M | 27.1M | 26.31M | 25.23M | 25.73M | 26.24M | 26.15M | 25.82M | 25.15M | 25.18M | 26.24M | 26.12M | 24.08M | 23.37M | 22.03M | 21.15M | 19.67M | 15.29M | 15.06M | 14.83M | 13.73M | 13.39M | 13.68M |
| Basic Shares Outstanding | 37.64M | 36.96M | 36.32M | 35.82M | 35.03M | 32.11M | 28.85M | 27.91M | 27.08M | 26.43M | 25.76M | 24.64M | 25.34M | 25.96M | 25.74M | 25.31M | 24.86M | 24.9M | 25.66M | 25.26M | 23.34M | 22.45M | 21.2M | 21.03M | 19.67M | 15.24M | 15.06M | 14.7M | 13.73M | 13.39M | 13.29M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Industrial cyclicality and inventory
According to the most recent quarterly financial data, Digi International achieved a notable revenue acceleration to 25.1% year-over-year growth in 2026Q2, marking a significant departure from the stagnant or negative growth trends that characterized the company's performance throughout the majority of the 2024 and 2025 fiscal periods.
The sharp uptick in top-line expansion suggests that recent strategic initiatives to bundle hardware with recurring service offerings may finally be gaining traction. Investors should monitor whether this growth is sustainable or if it reflects a temporary surge in project-based deployments that could normalize in subsequent quarters.
As reported in the company's income statements, gross margins have demonstrated a consistent upward trajectory, climbing from 57.6% in 2024Q1 to a peak of 64.0% in 2026Q2, which indicates a successful shift toward higher-value software and proprietary module sales within the overall product mix.
This margin expansion appears to validate the company's pivot away from commoditized hardware toward the higher-margin SmartSense and Digi Remote Manager ecosystems. Sustaining these levels will likely require continued discipline in managing component procurement costs amidst ongoing semiconductor supply chain volatility.
Based on the provided financial figures, operating income has not scaled proportionally with the recent revenue surge, as SG&A expenses rose to $47.3 million in 2026Q2, suggesting that the company is currently reinvesting heavily into its sales and operational infrastructure to support its evolving business model.
While gross profit has expanded significantly, the lack of meaningful operating margin expansion implies that the company is in a high-investment phase. Analysts should evaluate whether these elevated operating expenses are temporary costs associated with scaling the Solutions segment or if they represent a permanent increase in the company's fixed cost base.
Analysis of the income statement reveals that stock-based compensation remains a recurring expense, totaling $4.0 million in 2026Q1, which warrants careful consideration when evaluating the true cash-generative capacity of the company's reported net income of $11.3 million for the most recent quarter.
The presence of consistent stock-based compensation suggests that management is utilizing equity-based incentives to align employee interests, though this dilutive impact should be factored into long-term valuation models. Investors should remain cautious of how these non-cash charges influence the perceived quality of earnings relative to actual cash flow generation.
Despite the recent revenue acceleration, the company's reliance on industrial end-markets and the potential for elevated inventory levels in the cellular router channel, as noted in recent operational context, present a material risk that could lead to future margin compression or write-downs if demand softens.
Short-term growth may be masking underlying vulnerabilities in the legacy hardware business, which remains sensitive to capital expenditure cycles. If the transition to 5G-native hardware is slower than anticipated, the company may face significant inventory obsolescence risks that could impair future profitability.
Quick answers to the most common questions about buying DGII stock.
For fiscal year 2025, Digi International Inc. (DGII) reported total revenue of $430.2M. This represents a 119.7% increase compared to $195.8M in 1996.
Digi International Inc. (DGII) is profitable, generating $40.8M in net income for the fiscal year ending 2025 with a net profit margin of 9.5%.
Digi International Inc. (DGII) reported an operating income of $56.3M, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Digi International Inc. (DGII) generated $270.7M in gross profit for the year, representing a gross profit margin of 62.9%. This demonstrates the company's core pricing power and production efficiency.