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Digi International (DGII) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Aug 5, 2026
Digi International (DGII) reported revenue of $139M for the third quarter fiscal 2026 (Q3 FY26), +29% from a year earlier and +6% from the quarter before. Operating margin was 16.5%, net earnings $15.7M (11.4% of revenue).
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 follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $139M | +6% | +29% |
| Gross profit | $89.9M | +7% | +32% |
| Operating profit | $22.9M | +34% | +53% |
| Net earnings | $15.7M | +39% | +54% |
| Operating cash flow | $33.3M | -20% | +39% |
| Free cash flow | $32.5M | -21% | +41% |
What changed
Revenue was $138.7M in Q3 FY26, up 29% year over year and up 6% from the previous quarter. Product was the largest line at 64% of revenue. Service added $16.0M year over year (up 48%), 51% of the total change.
Gross margin was 64.8%, up 1.4 points from Q3 FY25. Operating profit was $22.9M, a 16.5% margin (up 2.6 points year over year). Of the extra revenue versus Q3 FY25, 26% reached operating profit, above the 14% margin then. Operating expenses grew 26% against revenue growth of 29%. The fastest-growing cost line was Sales & marketing (+26%). Net earnings were $15.7M, up 54% year over year. The effective tax rate was 26.0%.
Operating cash flow was $33.3M (up 39% year over year), 212% of net earnings. Non-cash charges added back $3.3M of depreciation and $4.9M of share-based compensation. Working capital and other items added $9.4M. Capital expenditures of $861K left free cash flow of $32.5M.
Questions
What was Digi International's revenue in the third quarter fiscal 2026?
Digi International (DGII) reported revenue of $139M for the third quarter fiscal 2026 (Q3 FY26), +29% from a year earlier and +6% from the quarter before.
Was Digi International profitable in the third quarter fiscal 2026?
Operating profit was $22.9M (16.5% of revenue) and net earnings $15.7M.
Source: Digi International 10-Q on SEC EDGAR.