Filing Flows › Digi International (DGII) › Q2 FY26 › vs Q1 FY26
Digi International (DGII) Q2 FY26 vs Q1 FY26 (quarter over quarter)
Digi International's revenue rose $8.3M (+7%) from $122M in Q1 FY26 to $131M in Q2 FY26. The biggest changes: Service +$5.7M (+14%); Product +$2.6M (+3%). Gross margin 64.0% against 62.4% (+1.6 pts).
Digi International, Q2 FY26: revenue $131M (+25% year over year), operating margin 13.1%, net earnings $11.3M, operating cash flow $41.5M. The chart draws each line against Q1 FY26, the increases inside each band.
Margins
| Q2 FY26 | Q1 FY26 | Change | |
|---|---|---|---|
| Gross margin | 64.0% | 62.4% | +1.6 pts |
| Operating margin | 13.1% | 13.3% | -0.3 pts |
| Net margin | 8.6% | 9.6% | -0.9 pts |
| Free cash flow margin | 31.2% | 28.7% | +2.5 pts |
Every line
| Line | Q2 FY26 | Q1 FY26 | Change | % |
|---|---|---|---|---|
| Product | $84.5M | $81.9M | $2.6M | +3% |
| Service | $46.3M | $40.6M | $5.7M | +14% |
| Revenue | $131M | $122M | $8.3M | +7% |
| Gross profit | $83.7M | $76.4M | $7.3M | +10% |
| Cost of revenue | $47.1M | $46.1M | $997K | +2% |
| Operating profit | $17.1M | $16.3M | $747K | +5% |
| Operating expenses | $66.6M | $60.1M | $6.5M | +11% |
| Pre-tax earnings | $14.8M | $14.0M | $790K | +6% |
| Other expense, net | $2.3M | $2.3M | −$43K | -2% |
| Research & development | $19.3M | $17.2M | $2.1M | +12% |
| Sales & marketing | $27.5M | $26.0M | $1.5M | +6% |
| General & admin | $19.8M | $16.9M | $2.9M | +17% |
| Net earnings | $11.3M | $11.7M | −$408K | -3% |
| Income tax | $3.5M | $2.3M | $1.2M | +52% |
| Depreciation | $3.3M | $3.2M | $52K | +2% |
| Share-based compensation | $4.5M | $4.0M | $520K | +13% |
| Working capital & other | $22.4M | $16.7M | $5.7M | +34% |
| Operating cash flow | $41.5M | $35.6M | $5.9M | +16% |
| Free cash flow (OCF − capex) | $40.8M | $35.2M | $5.7M | +16% |
| Capital expenditures | $638K | $457K | $181K | +40% |
Questions
How much did Digi International's revenue grow quarter over quarter in Q2 FY26?
Digi International's revenue rose $8.3M (+7%) from $122M in Q1 FY26 to $131M in Q2 FY26.
What drove Digi International's revenue change in Q2 FY26?
Service +$5.7M (+14%); Product +$2.6M (+3%).