Filing Flows › Digi International (DGII) › Q2 FY26
Digi International (DGII) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed May 6, 2026
Digi International (DGII) reported revenue of $131M for the second quarter fiscal 2026 (Q2 FY26), +25% from a year earlier and +7% from the quarter before. Operating margin was 13.1%, net earnings $11.3M (8.6% of revenue).
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 follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $131M | +7% | +25% |
| Gross profit | $83.7M | +10% | +29% |
| Operating profit | $17.1M | +5% | +24% |
| Net earnings | $11.3M | -3% | +8% |
| Operating cash flow | $41.5M | +16% | +58% |
| Free cash flow | $40.8M | +16% | +59% |
What changed
Revenue was $130.7M in Q2 FY26, up 25% year over year and up 7% from the previous quarter. Product was the largest line at 65% of revenue. Service added $13.8M year over year (up 42%), 52% of the total change.
Gross margin was 64.0%, up 1.9 points from Q2 FY25. Operating profit was $17.1M, a 13.1% margin (down 0.1 points year over year). Of the extra revenue versus Q2 FY25, 13% reached operating profit, below the 13% margin then. Operating expenses grew 30% against revenue growth of 25%. The fastest-growing cost line was General & admin (+43%). Net earnings were $11.3M, up 8% year over year. The effective tax rate was 23.7%.
Operating cash flow was $41.5M (up 58% year over year), 367% of net earnings. Non-cash charges added back $3.3M of depreciation and $4.5M of share-based compensation. Working capital and other items added $22.4M. Capital expenditures of $638K left free cash flow of $40.8M.
Questions
What was Digi International's revenue in the second quarter fiscal 2026?
Digi International (DGII) reported revenue of $131M for the second quarter fiscal 2026 (Q2 FY26), +25% from a year earlier and +7% from the quarter before.
Was Digi International profitable in the second quarter fiscal 2026?
Operating profit was $17.1M (13.1% of revenue) and net earnings $11.3M.
Source: Digi International 10-Q on SEC EDGAR.