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How Digi International (DGII) makes money

Digi International (DGII) made $139M of revenue in the third quarter fiscal 2026 (Q3 FY26), +29% from a year earlier. Product brought in $89.3M (64%); Service brought in $49.4M (36%). Of every dollar of revenue, 65¢ was left as gross profit, 17¢ was left as operating profit, 11¢ was left as net earnings.

Drawing the Sankey…

Digi International revenue by segment, Q3 FY26Digi International revenue by segment, Q3 FY26Product$89.3MService$49.4M
Digi International: revenue by line, Q4 FY24 to Q3 FY26Digi International: revenue by line, Q4 FY24 to Q3 FY26ProductServiceProduct: $89.3M latest$89.3MService: $49.4M latest$49.4MQ4 FY24Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26
Service went from 29% of revenue in Q4 FY24 to 36% in Q3 FY26, the largest shift in the mix.
Digi International revenue by quarterDigi International revenue by quarter$105MQ4 FY24$105MQ2 FY25$108MQ3 FY25$114MQ4 FY25$122MQ1 FY26$131MQ2 FY26$139MQ3 FY26
Digi International: where each dollar of revenue goesDigi International: where each dollar of revenue goesCost of revenue35¢Gross profit65¢Operating expenses48¢Operating profit17¢Income tax4¢Net earnings11¢Operating cash flow24¢Free cash flow23¢

Revenue by segment, Q3 FY26

SegmentRevenueShareQ/QY/Y
Product$89.3M64.4%+6%+20%
Service$49.4M35.6%+7%+48%

Where each dollar of revenue goes

LineQ3 FY26% of revenue
Revenue$139M100.0%
Cost of revenue$48.7M35.2%
Gross profit$89.9M64.8%
Operating expenses$67.0M48.3%
Operating profit$22.9M16.5%
Income tax$5.5M4.0%
Net earnings$15.7M11.4%
Operating cash flow$33.3M24.0%
Free cash flow$32.5M23.4%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 FY26$139M+29%
Q2 FY26$131M+25%
Q1 FY26$122M+18%
Q4 FY25$114M+9%
Q3 FY25$108M+2%
Q2 FY25$105M-3%
Q4 FY24$105M-6%

From Digi International's 10-Q filed Aug 5, 2026 (on EDGAR).

Questions

How does Digi International make money?

Digi International (DGII) made $139M of revenue in the third quarter fiscal 2026 (Q3 FY26), +29% from a year earlier. Product brought in $89.3M (64%); Service brought in $49.4M (36%). Of every dollar of revenue, 65¢ was left as gross profit, 17¢ was left as operating profit, 11¢ was left as net earnings.

What is Digi International's biggest business?

Product: $89.3M in the third quarter fiscal 2026, 64% of revenue, +20% from a year earlier.

What is Digi International's profit margin?

Net earnings were $15.7M, 11.4% of revenue, in the third quarter fiscal 2026; the operating margin was 16.5%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.