Operating leverage remains deeply negative, with the company reporting a $4.1 million operating loss in 2025Q2 alongside highly volatile gross margins that fluctuated between 4.3% and 44.6% over the last two years.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 18.61M | 19.65M | 28.25M | 37.01M | 21.41M | 10.51M | 10.44M | 11.29M | 14.58M | 16.57M | 20.03M | 17.44M | 17.83M | 17.62M | 19.58M | 25.21M | 26.37M | 32.63M | 19.39M | 4.11M | 0 |
| Revenue Growth % | -20.52% | -30.44% | -23.67% | 72.83% | 103.65% | 0.7% | -7.53% | -22.54% | -12.05% | -17.25% | 14.82% | -2.14% | 1.18% | -10.01% | -22.35% | -4.38% | -19.19% | 68.25% | 371.87% | - | - |
| Cost of Goods Sold | 13.92M | 14.16M | 22.49M | 34.69M | 15.75M | 6.45M | 7.21M | 7.33M | 10.03M | 11.27M | 11.68M | 7.52M | 7.72M | 8.14M | 10.81M | 13.08M | 12.93M | 12.98M | 7.65M | 1.79M | 0 |
| COGS % of Revenue | - | 72.07% | 79.6% | 93.73% | 73.55% | 61.36% | 69.04% | 64.91% | 68.82% | 68.02% | 58.32% | 43.12% | 43.29% | 46.18% | 55.19% | 51.9% | 49.05% | 39.79% | 39.45% | 43.67% | - |
| Gross Profit | 4.69M | 5.49M | 5.76M | 2.32M | 5.66M | 4.06M | 3.23M | 3.96M | 4.54M | 5.3M | 8.35M | 9.92M | 10.11M | 9.48M | 8.77M | 12.13M | 13.43M | 19.64M | 11.74M | 2.31M | 0 |
| Gross Margin % | 25.22% | 27.93% | 20.4% | 6.27% | 26.45% | 38.64% | 30.96% | 35.09% | 31.18% | 31.98% | 41.68% | 56.88% | 56.71% | 53.82% | 44.81% | 48.1% | 50.95% | 60.21% | 60.55% | 56.33% | - |
| Gross Profit Growth % | - | -4.74% | 148.18% | -59% | 39.41% | 25.67% | -18.41% | -12.83% | -14.27% | -36.51% | -15.86% | -1.84% | 6.61% | 8.09% | -27.67% | -9.72% | -31.62% | 67.32% | 407.19% | - | - |
| Operating Expenses | 17.41M | 20.69M | 28M | 32.06M | 20.42M | 11.73M | 15.27M | 14.52M | 15.74M | 17.79M | 15.97M | 12.81M | 12.15M | 10.85M | 12.4M | 15.92M | 15.22M | 14.54M | 8.88M | 5.66M | 2.31M |
| OpEx % of Revenue | - | 105.29% | 99.13% | 86.61% | 95.38% | 111.52% | 146.2% | 128.57% | 108% | 107.32% | 79.73% | 73.44% | 68.16% | 61.61% | 63.32% | 63.15% | 57.74% | 44.58% | 45.77% | 137.65% | - |
| Selling, General & Admin | 12.01M | 14.52M | 25.38M | 29.76M | 18.49M | 9.88M | 13.26M | 13.07M | 12.6M | 14.6M | 12.99M | 9.91M | 8.48M | 8.33M | 9.62M | 12.48M | 11.9M | 2.22M | 8.88M | 5.66M | 2.31M |
| SG&A % of Revenue | - | 73.9% | 89.86% | 80.42% | 86.37% | 93.99% | 126.99% | 115.79% | 86.4% | 88.09% | 64.85% | 56.79% | 47.58% | 47.26% | 49.15% | 49.51% | 45.12% | 6.8% | 45.77% | 137.65% | - |
| Research & Development | 574.66K | 1.34M | 2.62M | 2.29M | 1.93M | 1.84M | 2.01M | 1.44M | 3.15M | 3.19M | 2.98M | 2.91M | 3.67M | 2.53M | 2.77M | 3.44M | 3.6M | 3.13M | 0 | 0 | 0 |
| R&D % of Revenue | - | 6.82% | 9.27% | 6.19% | 9.02% | 17.53% | 19.21% | 12.79% | 21.6% | 19.22% | 14.88% | 16.66% | 20.58% | 14.35% | 14.17% | 13.64% | 13.67% | 9.59% | - | - | - |
| Other Operating Expenses | 1000K | 4.83M | 0 | 0 | 0 | 0 | 0 | 0 | -12.81K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -278.17K | 14.54M | 0 | 0 | 0 |
| Operating Income | -12.72M | -15.2M | -22.24M | -29.73M | -14.76M | -7.66M | -12.03M | -10.56M | -11.2M | -12.49M | -7.62M | -2.89M | -2.25M | -1.69M | -3.62M | -3.79M | -1.79M | 5.1M | 2.87M | -3.34M | -2.31M |
| Operating Margin % | -68.33% | -77.36% | -78.73% | -80.34% | -68.93% | -72.88% | -115.24% | -93.49% | -76.83% | -75.33% | -38.05% | -16.56% | -12.62% | -9.57% | -18.52% | -15.05% | -6.79% | 15.63% | 14.78% | -81.32% | - |
| Operating Income Growth % | - | 31.65% | 25.2% | -101.43% | -92.61% | 36.31% | -13.99% | 5.75% | 10.31% | -63.83% | -163.79% | -28.38% | -33.44% | 53.47% | 4.45% | -111.98% | -135.09% | 78% | 185.75% | -44.69% | - |
| EBITDA | -10.9M | -13.18M | -20.02M | -27.56M | -13.94M | -7.41M | -11.64M | -10.06M | -10.52M | -11.91M | -7.07M | -2.28M | -1.82M | -1.01M | -2.56M | -2.99M | -874.81K | 5.56M | 3.06M | -3.26M | -2.29M |
| EBITDA Margin % | -58.55% | -67.07% | -70.88% | -74.46% | -65.09% | -70.5% | -111.5% | -89.06% | -72.15% | -71.87% | -35.32% | -13.09% | -10.22% | -5.76% | -13.09% | -11.88% | -3.32% | 17.03% | 15.77% | -79.25% | - |
| EBITDA Growth % | 33.85% | 34.18% | 27.34% | -97.7% | -88.01% | 36.32% | -15.78% | 4.39% | 11.71% | -68.4% | -209.79% | -25.36% | -79.55% | 60.42% | 14.42% | -242.3% | -115.75% | 81.71% | 193.88% | -42.3% | - |
| D&A (Non-Cash Add-back) | 1.82M | 2.02M | 2.22M | 2.18M | 822.49K | 250.16K | 390.15K | 500.18K | 681.93K | 574.08K | 547.77K | 605.79K | 429K | 672.09K | 1.06M | 799.37K | 914.86K | 455.25K | 192.03K | 85.06K | 21.05K |
| EBIT | -10.03M | -17.9M | -22.33M | -18.84M | 25.56M | -2.25M | -9.96M | -14.18M | -11.61M | -12.71M | -11.76M | -8.66M | -2.22M | -1.68M | -3.74M | -3.77M | -1.75M | 5.1M | 2.87M | -3.34M | -1.58M |
| Net Interest Income | -2.85M | -3.75M | -3.04M | 93.83K | 281.6K | -329.39K | -5.96K | -1.35M | -721.92K | -258.48K | -261.08K | -486.08K | -266.57K | -284.47K | -206.35K | -712 | 35.35K | 78.59K | 6.6K | -19.66K | -30.76K |
| Interest Income | 98.14K | 69.51K | 95.72K | 131.03K | 310.2K | 47.89K | 37.41K | 19.52K | 11.82K | 26.2K | 21.16K | 13.66K | 11.39K | 10.09K | 16.11K | 24.15K | 35.35K | 78.59K | 34.61K | 20.74K | 28.8K |
| Interest Expense | 2.95M | 3.82M | 3.13M | 37.2K | 28.6K | 377.29K | 43.37K | 1.37M | 733.74K | 284.67K | 282.23K | 499.74K | 277.96K | 294.56K | 222.46K | 24.86K | 0 | 0 | 28.01K | 40.4K | 59.56K |
| Other Income/Expense | -265.93K | -6.51M | -3.22M | 10.86M | 40.29M | 5.04M | 2.03M | -4.99M | -1.14M | -224.5K | -4.42M | -6.27M | -455.81K | -598.42K | -337.44K | -712 | -44.58K | 78.59K | -4.9K | -19.66K | 687.42K |
| Pretax Income | -12.98M | -21.72M | -25.46M | -18.87M | 25.53M | -2.63M | -10.01M | -15.54M | -12.34M | -12.71M | -12.04M | -9.16M | -2.5M | -1.97M | -3.96M | -3.79M | -1.75M | 5.18M | 2.86M | -3.36M | -2.34M |
| Pretax Margin % | -69.76% | -110.51% | -90.14% | -51% | 119.23% | -24.97% | -95.83% | -137.67% | -84.67% | -76.69% | -60.1% | -52.53% | -14.01% | -11.19% | -20.24% | -15.05% | -6.65% | 15.87% | 14.75% | -81.79% | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -90K | 3.1K | 0 | 0 | 277.96K | 294.56K | 0 | 2.75M | -640K | 1.82M | -1.66M | 0 | 30.76K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.73% | -0.02% | 0% | 0% | -11.13% | -14.94% | 0% | -72.47% | 36.48% | 35.24% | -58.14% | 0% | -1.31% |
| Net Income | -11.11M | -19.84M | -25.69M | -19.28M | 25.47M | -2.63M | -10.01M | -15.54M | -12.25M | -12.71M | -12.04M | -9.16M | -2.5M | -1.97M | -3.96M | -6.54M | -1.11M | 3.35M | 4.52M | -3.36M | -2.34M |
| Net Margin % | -59.7% | -100.98% | -90.94% | -52.1% | 118.97% | -24.97% | -95.83% | -137.67% | -84.05% | -76.69% | -60.1% | -52.53% | -14.01% | -11.19% | -20.24% | -25.96% | -4.23% | 10.28% | 23.33% | -81.79% | - |
| Net Income Growth % | 45.01% | 22.75% | -33.23% | -175.69% | 1070.13% | 73.76% | 35.63% | -26.87% | 3.61% | -5.59% | -31.37% | -266.83% | -26.74% | 50.26% | 39.46% | -487.31% | -133.23% | -25.86% | 234.57% | -43.62% | - |
| Net Income (Continuing) | -12.98M | -21.72M | -25.46M | -18.87M | 25.53M | -2.63M | -10.01M | -15.54M | -12.25M | -12.71M | -12.04M | -9.16M | -2.5M | -1.97M | -3.96M | -6.54M | -1.11M | 3.35M | 4.52M | -3.36M | -1.62M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -1.14M | -1.2M | 673.29K | 448.69K | 56.45K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -7.85 | -5.58 | -9.22 | -2.40 | 10.14 | -2.40 | -16.60 | -38.51 | -35.14 | -47.54 | -55.47 | -70.76 | -23.40 | -19.43 | -39.25 | -64.18 | -11.29 | 30.40 | 44.80 | -41.92 | -29.47 |
| EPS Growth % | 39731.13% | 39.48% | -284.17% | -123.67% | 522.5% | 85.54% | 56.89% | -9.59% | 26.08% | 14.3% | 21.61% | -202.39% | -20.43% | 50.5% | 38.84% | -468.47% | -137.14% | -32.14% | 206.87% | -42.25% | - |
| EPS (Basic) | - | -5.58 | -9.22 | -2.40 | 10.14 | -2.40 | -16.60 | -38.60 | -35.20 | -47.60 | -55.47 | -70.80 | -23.40 | -19.43 | -39.25 | -64.18 | -11.29 | 35.20 | 52.80 | -41.92 | -29.47 |
| Diluted Shares Outstanding | 1.42M | 3.56M | 2.78M | 2.55M | 2.51M | 1.08M | 573.93K | 403.66K | 348.71K | 267.35K | 217K | 129.5K | 106.75K | 101.45K | 100.95K | 101.97K | 98.74K | 109.43K | 101.02K | 80.19K | 79.42K |
| Basic Shares Outstanding | 1.42M | 3.56M | 2.78M | 2.55M | 2.51M | 1.08M | 573.93K | 402.71K | 348.08K | 267.03K | 217K | 129.42K | 106.75K | 101.45K | 100.95K | 101.97K | 98.74K | 95.75K | 85.89K | 80.19K | 79.42K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity and dilution risk
As reported in recent financial filings, Digital Ally has experienced a sustained revenue decline, with quarterly figures falling from $8.3 million in 2023Q2 to $5.6 million in 2025Q2, reflecting a challenging environment for its diversified business segments and a lack of durable top-line growth momentum.
The consistent year-over-year revenue contraction suggests that the company's strategic pivots into ticketing and RCM have failed to offset the erosion of its legacy video solutions business. Investors should monitor whether the current revenue floor is stable or if further market share losses in the competitive security space are likely.
Based on the provided income statement data, gross margins have exhibited extreme volatility, ranging from a low of 4.3% in 2024Q2 to a peak of 44.6% in 2024Q4, indicating a lack of pricing power and significant sensitivity to product mix and inventory costs.
This inconsistency in gross profitability implies that the company struggles to maintain consistent unit economics across its disparate business lines. The inability to sustain higher margin levels suggests that the cost of goods sold remains structurally high relative to the company's current revenue scale.
According to the company's historical income statements, operating expenses consistently exceed gross profit, resulting in persistent operating losses that reached $4.1 million in 2025Q2, demonstrating a failure to achieve the necessary scale to cover fixed corporate overhead and operational requirements.
The lack of operating leverage indicates that the company's cost structure is not aligned with its current revenue generation capabilities. Without a significant reduction in SG&A or a substantial increase in top-line volume, the company appears unlikely to reach an operating break-even point in the near term.
Financial statements reveal that net income is frequently impacted by non-operating items and significant volatility, as evidenced by the anomalous $4.3 million net income reported in 2025Q1, which contrasts sharply with the persistent losses observed in nearly every other quarter of the analyzed period.
The erratic nature of the bottom line suggests that reported net income is not a reliable indicator of core operational health. Investors should focus on operating cash flow and revenue trends rather than headline EPS, which appears heavily influenced by accounting adjustments rather than sustainable business performance.
As indicated by the company's financial data, the combination of a $454,314 cash position and recurring multi-million dollar quarterly operating losses suggests a high probability of future capital raises, which would likely result in significant dilution for existing shareholders and potential going-concern risks.
Short-sellers would likely focus on the company's inability to generate positive cash flow despite multiple strategic pivots. The lack of a clear path to profitability, combined with a precarious liquidity position, warrants extreme caution regarding the company's long-term operational sustainability.
Quick answers to the most common questions about buying DGLY stock.
For fiscal year 2024, Digital Ally, Inc. (DGLY) reported total revenue of $19.7M.
Digital Ally, Inc. (DGLY) reported a net loss of $19.8M for the fiscal year ending 2024.
Digital Ally, Inc. (DGLY) reported an operating income of $-15.2M, resulting in an operating profit margin of -77.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Digital Ally, Inc. (DGLY) generated $5.5M in gross profit for the year, representing a gross profit margin of 27.9%. This demonstrates the company's core pricing power and production efficiency.