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Digi International (DGII) earnings and revenue breakdown

Latest: Q3 FY26 · 10-Q filed Aug 5, 2026 · Digi International (DGII) Q3 FY26 earnings results →

Q3 FY26 Revenue up 29% year over year to $139M · 11¢ of every $1 of revenue kept as net profit · operating margin 16.5%

Digi International made $139M in Q3 FY26 (+29% Y/Y): Product $89.3M, Service $49.4M. Operating margin 16.5%, net earnings $15.7M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Aug 5, 2026.

Revenue$139M
Year over year+29%
Operating margin16.5%
Net earnings$15.7M
Operating cash flow$33.3M

Drawing the Sankey…

Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF

What changed this quarter

Revenue was $138.7M in Q3 FY26, up 29% year over year and up 6% from the previous quarter. Product was the largest line at 64% of revenue. Service added $16.0M year over year (up 48%), 51% of the total change.

Gross margin was 64.8%, up 1.4 points from Q3 FY25. Operating profit was $22.9M, a 16.5% margin (up 2.6 points year over year). Of the extra revenue versus Q3 FY25, 26% reached operating profit, above the 14% margin then. Operating expenses grew 26% against revenue growth of 29%. The fastest-growing cost line was Sales & marketing (+26%). Net earnings were $15.7M, up 54% year over year. The effective tax rate was 26.0%.

Operating cash flow was $33.3M (up 39% year over year), 212% of net earnings. Non-cash charges added back $3.3M of depreciation and $4.9M of share-based compensation. Working capital and other items added $9.4M. Capital expenditures of $861K left free cash flow of $32.5M.

Quarterly history

Digi International revenue by quarterDigi International revenue by quarter$105MQ4 FY24$105MQ2 FY25$108MQ3 FY25$114MQ4 FY25$122MQ1 FY26$131MQ2 FY26$139MQ3 FY26
Digi International net earnings by quarterDigi International net earnings by quarter$11.9MQ4 FY24$10.5MQ2 FY25$10.2MQ3 FY25$10.0MQ4 FY25$11.7MQ1 FY26$11.3MQ2 FY26$15.7MQ3 FY26
QuarterFormFiledRevenueY/YOp. marginNet earningsOp. cash flow
Q3 FY2610-QAug 5, 2026$139M+29%16.5%$15.7M$33.3M
Q2 FY2610-QMay 6, 2026$131M+25%13.1%$11.3M$41.5M
Q1 FY2610-QFeb 4, 2026$122M+18%13.3%$11.7M$35.6M
Q4 FY2510-KNov 21, 2025$114M+9%12.5%$10.0M$28.0M
Q3 FY2510-QAug 6, 2025$108M+2%13.9%$10.2M$24.0M
Q2 FY2510-QMay 7, 2025$105M-3%13.1%$10.5M$26.3M
Q4 FY2410-KNov 22, 2024$105M-6%14.2%$11.9M$26.4M

Charts

Digi International: revenue growth, year over year and quarter over quarterDigi International: revenue growth, year over year and quarter over quarterY/YQ/Q-6%Q4 FY24-3%-1%Q2 FY25+2%+3%Q3 FY25+9%+6%Q4 FY25+18%+7%Q1 FY26+25%+7%Q2 FY26+29%+6%Q3 FY26
Latest (Q3 FY26): Y/Y +29%, Q/Q +6%.
Digi International: where the cash came from (+) and went (−), TTM to Q3 FY26Digi International: where the cash came from (+) and went (−), TTM to Q3 FY26Acquisitions−$195MOperating cash flow$138MNet borrowing (+) / repaid (−)$67.7MBuybacks−$11.5MCash drawn (+) / kept (−)−$7.9MShares issued$7.2MOther financing$2.9MCapital spending−$2.4MOther investing$300KExchange rates−$162K
From the cash-flow statement as filed (SEC XBRL). Cash is fungible: the bars do not say which dollar paid for what.
Digi International: profit against cash, quarter by quarterDigi International: profit against cash, quarter by quarterNet incomeOperating cash flow$11.9M$26.4MQ4 FY24$10.1M$29.7MQ1 FY25$10.5M$26.3MQ2 FY25$10.2M$24.0MQ3 FY25$10.0M$28.0MQ4 FY25$11.7M$35.6MQ1 FY26$11.3M$41.5MQ2 FY26$15.7M$33.3MQ3 FY26
Latest (Q3 FY26): Net income $15.7M, Operating cash flow $33.3M.
Digi International: diluted shares by fiscal yearDigi International: diluted shares by fiscal year30MFY2033MFY2136MFY2237MFY2337MFY2438MFY25
+27.7% since FY20: more shares outstanding (issuance, stock pay).
Digi International in its industry: growth against margin (11 companies, SIC 3576)Digi International in its industry: growth against margin (11 companies, SIC 3576)revenue growth, year over year →↑ operating marginmedian +10%median 7%CSCOANETFFIVEXTRNTGRATENLTRXFOXXCIITINTZDGII (+29%, 16%)
Computer Communications Equipment; dot size is quarterly revenue; dashed lines are the industry's medians.

Interactive views

The same charts as the app — open one to draw it.

💵Where each $1 goesinteractive

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🌏Named in Asian annual reportsinteractive

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🔄Rotation against the market and its industry (RRG)interactive

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🔍Earnings qualityinteractive

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⚖️Fair value by methodinteractive

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🔭Outlook & guidanceinteractive

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📈Investments: gains and what it boughtinteractive

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🏭Its industry’s money flow (input-output)interactive

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About Digi International

Digi International Inc. ("Digi ® ," "we," "our," or "us") was incorporated in 1985 as a Minnesota corporation. We reorganized as a Delaware corporation in 1989 in conjunction with our initial public offering. Our common stock trades on the Nasdaq Global Select Market tier of the Nasdaq Stock Market LLC (the "Nasdaq") under the symbol DGII. Our World Headquarters is located at 9350 Excelsior Blvd., Suite 700, Hopkins, Minnesota 55343. The telephone number at our World Headquarters is (952) 912-3444. We are a leading global provider of business and mission-critical Internet of Things ("IoT") connectivity products, services and solutions. We help our customers deploy, monitor and manage critical communications infrastructures that deliver important information in demanding environments with high levels of security and reliability.

In its own words, from its 10-K, filed Nov 21, 2025.

Digi International against its Computer Communications Equipment peers

The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +29% against the peers' median +11%. Operating margin: 16.5% against the peers' median 16.5%.

CompanyQuarterRevenueY/YOp. margin
DGII Digi InternationalQ3 FY26$139M+29%16.5%
CSCO Cisco SystemsQ4 FY26$17.3B+18%24.7%
ANET Arista NetworksQ3 2026$3.7B+58%44.9%
FFIV F5Q3 FY26$865M+11%24.7%
EXTR Extreme NetworksQ1 FY27$341M+10%6.8%
NTGR NetgearQ3 2026$167M-9%-8.2%
ATEN A10 NetworksQ3 2026$91.5M+23%20.0%
LTRX LantronixQ4 FY26$31.2M+8%-1.3%
FOXX Foxx Development HoldingsQ4 FY26$7.0M-50%-97.7%

Source: Digi International 10-Q on SEC EDGAR · CIK 854775 · Computer Communications Equipment

13F: who owns DGII and who is buying

Largest holders of DGII (13F)Largest holders of DGII (13F)BlackRock$446MFMR LLC$180MVanguard Group$146MEarnest Partners LLC$132MState Street$130MDimensional Fund Advisors LP$124MVanguard Portfolio Management LLC$123MVanguard Capital Management LLC$121MConestoga Capital Advisors, LLC$114MPrice T Rowe Associates$113M
Funds' net buying of DGII by quarter (13F)Funds' net buying of DGII by quarter (13F)−$15.2M2024-09−$2.3M2024-12$21.8M2025-03$8.4M2025-06−$28.5M2025-09$3.9M2025-12$82.3M2026-03$65.9M2026-06
Value of shares 13F filers added minus the value they sold, each quarter (quarters with most filings in).

More on DGII

History

Every quarter: Q3 FY26 results · Q2 FY26 results · Q1 FY26 results · Q4 FY25 results · Q3 FY25 results · Q2 FY25 results · Q4 FY24 results

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