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Digi International (DGII) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Feb 4, 2026
Digi International (DGII) reported revenue of $122M for the first quarter fiscal 2026 (Q1 FY26), +18% from a year earlier and +7% from the quarter before. Operating margin was 13.3%, net earnings $11.7M (9.6% of revenue).
Digi International, Q1 FY26: revenue $122M (+18% year over year), operating margin 13.3%, net earnings $11.7M, operating cash flow $35.6M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $122M | +7% | +18% |
| Gross profit | $76.4M | +5% | +19% |
| Operating profit | $16.3M | +14% | +22% |
| Net earnings | $11.7M | +17% | +16% |
| Operating cash flow | $35.6M | +27% | +20% |
| Free cash flow | $35.2M | +28% | +21% |
What changed
Revenue was $122.5M in Q1 FY26, up 18% year over year and up 7% from the previous quarter. Product was the largest line at 67% of revenue. Service added $9.5M year over year (up 31%), 51% of the total change.
Gross margin was 62.4%, up 0.4 points from a year earlier. Operating profit was $16.3M, a 13.3% margin (up 0.5 points year over year). Of the extra revenue versus a year earlier, 16% reached operating profit, above the 13% margin then. Operating expenses grew 18% against revenue growth of 18%. The fastest-growing cost line was Sales & marketing (+19%). Net earnings were $11.7M, up 16% year over year. The effective tax rate was 16.5%.
Operating cash flow was $35.6M (up 20% year over year), 304% of net earnings. Non-cash charges added back $3.2M of depreciation and $4.0M of share-based compensation. Working capital and other items added $16.7M. Capital expenditures of $457K left free cash flow of $35.2M.
Questions
What was Digi International's revenue in the first quarter fiscal 2026?
Digi International (DGII) reported revenue of $122M for the first quarter fiscal 2026 (Q1 FY26), +18% from a year earlier and +7% from the quarter before.
Was Digi International profitable in the first quarter fiscal 2026?
Operating profit was $16.3M (13.3% of revenue) and net earnings $11.7M.
Source: Digi International 10-Q on SEC EDGAR.