Filing Flows › Digi International (DGII) › Q2 FY26 › vs Q2 FY25
Digi International (DGII) Q2 FY26 vs Q2 FY25 (year over year)
Digi International's revenue rose $26.2M (+25%) from $105M in Q2 FY25 to $131M in Q2 FY26. The biggest changes: Service +$13.8M (+42%); Product +$12.5M (+17%). Gross margin 64.0% against 62.1% (+1.9 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 Q2 FY25, the increases inside each band.
Margins
| Q2 FY26 | Q2 FY25 | Change | |
|---|---|---|---|
| Gross margin | 64.0% | 62.1% | +1.9 pts |
| Operating margin | 13.1% | 13.1% | -0.1 pts |
| Net margin | 8.6% | 10.0% | -1.4 pts |
| Free cash flow margin | 31.2% | 24.6% | +6.6 pts |
Every line
| Line | Q2 FY26 | Q2 FY25 | Change | % |
|---|---|---|---|---|
| Product | $84.5M | $72.0M | $12.5M | +17% |
| Service | $46.3M | $32.5M | $13.8M | +42% |
| Revenue | $131M | $105M | $26.2M | +25% |
| Gross profit | $83.7M | $64.9M | $18.7M | +29% |
| Cost of revenue | $47.1M | $39.6M | $7.5M | +19% |
| Operating profit | $17.1M | $13.7M | $3.3M | +24% |
| Operating expenses | $66.6M | $51.2M | $15.4M | +30% |
| Pre-tax earnings | $14.8M | $12.3M | $2.5M | +20% |
| Other expense, net | $2.3M | $1.4M | $885K | +64% |
| Research & development | $19.3M | $15.3M | $4.0M | +26% |
| Sales & marketing | $27.5M | $22.0M | $5.5M | +25% |
| General & admin | $19.8M | $13.8M | $6.0M | +43% |
| Net earnings | $11.3M | $10.5M | $806K | +8% |
| Income tax | $3.5M | $1.9M | $1.7M | +89% |
| Depreciation | $3.3M | $2.9M | $324K | +11% |
| Share-based compensation | $4.5M | $3.9M | $563K | +14% |
| Working capital & other | $22.4M | $8.9M | $13.5M | +151% |
| Operating cash flow | $41.5M | $26.3M | $15.2M | +58% |
| Free cash flow (OCF − capex) | $40.8M | $25.7M | $15.1M | +59% |
| Capital expenditures | $638K | $558K | $80K | +14% |
Questions
How much did Digi International's revenue grow year over year in Q2 FY26?
Digi International's revenue rose $26.2M (+25%) from $105M in Q2 FY25 to $131M in Q2 FY26.
What drove Digi International's revenue change in Q2 FY26?
Service +$13.8M (+42%); Product +$12.5M (+17%).