Filing Flows › Digi International (DGII) › Q3 FY26 › vs Q2 FY26
Digi International (DGII) Q3 FY26 vs Q2 FY26 (quarter over quarter)
Digi International's revenue rose $7.9M (+6%) from $131M in Q2 FY26 to $139M in Q3 FY26. The biggest changes: Product +$4.8M (+6%); Service +$3.1M (+7%). Gross margin 64.8% against 64.0% (+0.8 pts).
Digi International, Q3 FY26: revenue $139M (+29% year over year), operating margin 16.5%, net earnings $15.7M, operating cash flow $33.3M. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q3 FY26 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 64.8% | 64.0% | +0.8 pts |
| Operating margin | 16.5% | 13.1% | +3.5 pts |
| Net margin | 11.4% | 8.6% | +2.7 pts |
| Free cash flow margin | 23.4% | 31.2% | -7.8 pts |
Every line
| Line | Q3 FY26 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Product | $89.3M | $84.5M | $4.8M | +6% |
| Service | $49.4M | $46.3M | $3.1M | +7% |
| Revenue | $139M | $131M | $7.9M | +6% |
| Gross profit | $89.9M | $83.7M | $6.3M | +7% |
| Cost of revenue | $48.7M | $47.1M | $1.7M | +4% |
| Operating profit | $22.9M | $17.1M | $5.8M | +34% |
| Operating expenses | $67.0M | $66.6M | $429K | +0.6% |
| Pre-tax earnings | $21.3M | $14.8M | $6.4M | +44% |
| Other expense, net | $1.6M | $2.3M | −$627K | -28% |
| Research & development | $20.3M | $19.3M | $1.0M | +5% |
| Sales & marketing | $29.1M | $27.5M | $1.5M | +6% |
| General & admin | $17.6M | $19.8M | −$2.2M | -11% |
| Net earnings | $15.7M | $11.3M | $4.4M | +39% |
| Income tax | $5.5M | $3.5M | $2.0M | +57% |
| Depreciation | $3.3M | $3.3M | $53K | +2% |
| Share-based compensation | $4.9M | $4.5M | $410K | +9% |
| Working capital & other | $9.4M | $22.4M | −$13.1M | -58% |
| Operating cash flow | $33.3M | $41.5M | −$8.2M | -20% |
| Free cash flow (OCF − capex) | $32.5M | $40.8M | −$8.4M | -21% |
| Capital expenditures | $861K | $638K | $223K | +35% |
Questions
How much did Digi International's revenue grow quarter over quarter in Q3 FY26?
Digi International's revenue rose $7.9M (+6%) from $131M in Q2 FY26 to $139M in Q3 FY26.
What drove Digi International's revenue change in Q3 FY26?
Product +$4.8M (+6%); Service +$3.1M (+7%).