US Market News
2 weeks ago
Digi XBee Delivers Mission-Critical Wireless Mesh Performance Behind the World’s Largest Drone Light ShowsJune 17, 2026 1:22 PM
Business Wire HighGreat Technology sets a Guinness World Record orchestrating 8,100 drones with reliable, secure, and scalable Digi XBee and DigiMesh connectivity. Digi International (NASDAQ: DGII, www.digi.com), a global leader in Internet of Things (IoT) connectivity solutions, has played a central role in powering record-breaking innovation across industries. With over 25 million Digi XBee modules deployed globally, Digi’s wireless technology is the trusted backbone for applications requiring secure, scalable, and ultra-reliable connectivity. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260617086803/en/Digi XBee Delivers Mission-Critical Wireless Mesh Performance Behind the World’s Largest Drone Light Shows HighGreat Technology, a pioneer in large-scale aerial entertainment performances, relies on Digi XBee wireless modules with DigiMesh networking to synchronize thousands of LED-equipped drones featured at major civic, cultural, brand, and entertainment events in more than 300 cities around the globe. The breathtaking choreography of thousands of airborne drones, each transmitting real-time kinematic (RTK) positioning data for centimeter-level accuracy, has earned HighGreat multiple Guinness World Records. Most recently, HighGreat showcased their capabilities at an event with a fleet performance of over 15,000 AI-controlled drones. “Each of our shows requires hundreds or thousands of drones working in perfect harmony,” said Wei Deng of HighGreat Technology. “Digi XBee delivered the low latency, reliability, and scalability we required to achieve complex formations without losing a single packet of data.” HighGreat Technology has built more than 100,000 drones using Digi XBee modules. This deployment demonstrates the scalability and reliability that organizations across industrial automation, agriculture, robotics, renewable energy, oil and gas, and other industries rely on for mission-critical wireless connectivity. The drone shows also help replace traditional fireworks with safer, more sustainable "cold fireworks" or even hybrid performances, opening new creative possibilities turning night skies into a dynamic canvas for art, storytelling, and celebration. Built for Reliable Performance at Scale Behind the spectacle lies advanced network design built on the Digi XBee module with DigiMesh. In flight, drones are configured to conserve bandwidth and minimize latency. On the ground, multiple base stations serve as routing hubs, extending coverage and ensuring consistent data flow. The compact and universal form factor of the Digi XBee module supports drone miniaturization, while its exceptional radio performance and power management make it ideal for scenarios where multiple base stations serve thousands of drones over expansive venues. "These drone swarms are wireless mesh networks in motion, synchronized with high precision using self-healing DigiMesh technology. This is the bar Digi XBee clears every day," said Mike Rohrmoser, Vice President of Product Management, OEM Solutions at Digi International. "If it works at scale in the sky, it works on the ground and across industries. That’s why customers trust Digi XBee as the wireless connectivity platform of choice for the most demanding applications." The Digi XBee module family and the DigiMesh networking protocol are designed for applications where wireless connectivity is critical. Built for reliability. Low latency wireless performance with self-healing DigiMesh connectivity for reliable connectivity in demanding environments. Secure by design. Digi TrustFence, strong link encryption, and secure DigiMesh networking protect data transmissions. Proven at scale. With more than 25 million Digi XBee modules deployed globally, Digi XBee is production-hardened across every scale of deployment. Digi XBee delivers mission-critical wireless connectivity across industries. Explore the case study and visit www.digi.com/xbee to learn more about the entire Digi XBee line of wireless solutions. About Digi International Digi International (NASDAQ: DGII) is a global technology leader empowering enterprises to build, connect, and manage the critical systems that drive their businesses. Through an integrated portfolio of managed services, intelligent software, secure connectivity, and resilient edge solutions, Digi helps enterprises monitor, update, and control assets in real time, strengthen compliance, streamline workflows, and keep distributed operations running without interruption. Since 1985, Digi has enabled organizations worldwide to modernize operations and confidently connect millions of devices. Learn more at www.digi.com/. View source version on businesswire.com: https://www.businesswire.com/news/home/20260617086803/en/ Media Contact: Peter Ramsay
Global Results Communications
digi@globalresultspr.com
949.307.5908 Original: Digi XBee Delivers Mission-Critical Wireless Mesh Performance Behind the World’s Largest Drone Light Shows
US Market News
2 months ago
New SmartSense Report Reveals What Restaurants Must Do to Retain Customers as Dining Spend DeclinesMay 5, 2026 4:47 PM
Business Wire As 59% of consumers report that their financial situation has worsened over the last 12 months, economic pressure is reshaping dining and takeout habits and consumers are growing more selective and less forgiving about their fast casual experiences. SmartSense by Digi, part of Digi International (NASDAQ: DGII, www.digi.com) today released findings from its Counter Intelligence Report: State of Fast Casual in 2026, based on a survey of 1,000 U.S.-based adults (18+). The research explores how economic conditions, food safety perceptions, and restaurant management influence dining behavior across fast casual and other restaurant categories. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260505003454/en/New SmartSense Report Reveals What Restaurants Must Do to Retain Customers as Dining Spend Declines The findings negate claims that Americans have fallen out of love with the fast casual category, as 70% say they still enjoy mixed bowl-based meal options, such as rice- or salad-based bowls with customizable vegetables, proteins and sauces. Yet, with 66% of consumers cutting back on dining overall, loyalty is increasingly fragile, as consumers question fast casual’s standards for food safety, cleanliness, and consistency. “Our report underscores that consumers continue to value the healthy, flexible options fast casual chains provide,” said Guy Yehiav, President of SmartSense by Digi. “However, they’re still cutting discretionary spending, and the fast casual sector is not immune to this shift. While financial pressures may be the main reason consumers forgo their go-to burrito or salad bowl in 2026, they are also offering clear, actionable feedback on persistent pain points. These are insights that operators can harness to revamp the customer experience across all their franchises.” Consumers rethink restaurant spend as economic pressure intensifies Fifty-nine percent (59%) of consumers report worsening economic conditions over the past six months, reinforcing signals shown in reports of declining consumer sentiment and hiring rates. In response, 66% say their dining-out budget has tightened in the last year. When money is tight, consumers say they’re likely to reduce spending across every restaurant category: 78% say they decrease spending at sit-down establishments, i.e. full-service restaurants 69% say they decrease spending on fast casual restaurants — primarily fast counter service often with customizable order options, such as bowl-based formats 58% say they decrease spending on quick-serve restaurants (QSRs), such as traditional drive-thru fast-food options Fast casual, however, remains resilient among the very group reported to negatively impact the sector: Gen Z. When money is tight, 75% of Gen Z say they are more likely to choose fast casual over sit-down options, and nearly half (49%) say they increase spending in the category. Baby boomers, on the other hand, remain resilient across the board in 2026, but almost half (46%) are still saying their economic circumstances have worsened and they’re less likely than average to report a tighter dining out budget (56% of Boomers vs. 66% overall). Yet, both groups have high expectations for food safety. These findings highlight the importance of delivering strong value without compromising experience. Millions of Americans are still patronizing restaurants, but every dollar counts more. Safety concerns and skepticism raise the bar for operators While 70% of consumers say they enjoy fast casual staples like customizable bowls, perceptions around safety are influencing brand trust. Stakes are high for operators when it comes to food safety: Sixty percent (60%) of consumers, and 68% of Gen Z, believe fast casual restaurants are more likely to cut corners on food safety than full-service establishments Fifty percent (50%) of consumers overall, rising to 61% of Gen Z, say these restaurants are more prone to food recalls Sixty-eight percent (68%) of consumers say they would stop visiting a restaurant permanently after a food safety issue Fifty-seven percent (57%) say inconsistent experiences across locations would have the same effect and prevent returning Fifty percent (50%) cite disorganized staff and 42% point to slow service as reasons they would stop returning to a brand However, there are ways restaurants can build trust. Consistency and experience determine long-term loyalty Fast casual brands depend heavily on repeat visits. Restaurant cleanliness, brand reputation, and food safety technology use are all factors that drive loyalty: Thirty-seven percent (37%) of consumers purchase from fast casual restaurants at least once a week Ninety-three percent (93%) of consumers indicate cleanliness of dining areas impacts perceptions of food safety Seventy-nine percent (79%) say restaurant reputation drives their perceptions of restaurant food safety Sixty-nine percent (69%) say they would be more likely to visit a restaurant that publicly shares its use of technology to continuously ensure food safety “Increasing regulation and complexity in the restaurant industry are already putting pressure on operators to prioritize food safety, compliance, and operational efficiency,” added Yehiav. “Our findings show that consumers want restaurants to take action in these areas too, and enforcing brand, safety, and operational standards shouldn’t be treated as box-checking exercises, but as strategic investments that build trust, strengthen loyalty, and drive revenue for years to come.” To read the full report findings, click here. For restaurant operators interested in investing in technologies that drive food safety and operational excellence at scale, sign up for a demo here or stop by the SmartSense booth #6472 at the National Restaurant Association Show, May 16-19, 2026 in Chicago. About the Study This survey was conducted among 1,000 U.S.-based adults (18+) to better understand how consumers are thinking about fast casual restaurants in 2026 and how these options compare to quick serve restaurants and fast-food options. In the survey, fast casual restaurants were defined as those that primarily offer fast counter service often with customizable order options, such as bowl-based formats. Quick serve restaurants (QSR) were defined as dining options that traditionally have drive-thru service, and sit-down restaurants were defined as full-service options. About SmartSense by Digi SmartSense by Digi, a business unit of Digi International (NASDAQ: DGII), is a leading global provider of Internet of Things (IoT) Sensing as a Service solutions that deliver dynamic and personalized asset tracking, monitoring, process digitization, and digital decisioning across key verticals. The company enables organizations to leverage the power of IoT automation, prescriptive workflows, and insightful analytics to ensure compliance, workforce productivity, brand loyalty, loss prevention, and reduction of waste and energy consumption. Combining new and innovative data-driven approaches with world-class IoT tools, SmartSense partners with enterprises to elevate their business outcomes and asset protection to new heights. For more information, visit www.smartsense.co/. About Digi International Digi International (NASDAQ: DGII) is a global technology leader empowering enterprises to build, connect, and manage the critical systems that drive their businesses. Through an integrated portfolio of managed services, intelligent software, secure connectivity, and resilient edge solutions, Digi helps enterprises monitor, update, and control assets in real time, strengthen compliance, streamline workflows, and keep distributed operations running without interruption. Since 1985, Digi has enabled organizations worldwide to modernize operations and confidently connect millions of devices. Learn more at www.digi.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260505003454/en/ Media Contact
Jeff Eltringham
Head of Marketing
Office: +1 952.912.3104
Jeff.Eltringham@digi.com Original: New SmartSense Report Reveals What Restaurants Must Do to Retain Customers as Dining Spend Declines
US Market News
5 months ago
Digi International Reports First Fiscal Quarter 2026 ResultsFebruary 4, 2026 4:05 PM
Business Wire
Record Quarterly Revenue of $122M, End of Quarter ARR of $157M
Cash Flow From Operations of $36M
Digi International Inc. ("Digi" or the "Company") (Nasdaq: DGII), a leading global provider of business and mission-critical Internet of Things ("IoT") products, services and solutions, today announced its financial results for its first fiscal quarter ended December 31, 2025.
First Fiscal Quarter 2026 Results Compared to First Fiscal Quarter 2025 Results1
Revenue was $122 million, an increase of 18%.
Gross profit margin was 62.4%, an increase of 40 basis points.
Operating margin was 13.3%, an increase of 40 basis points.
Net income was $12 million, an increase of 16%.
Net income per diluted share was $0.31, an increase of 15%.
Adjusted net income was $21 million, an increase of 27%.
Effective in the first fiscal quarter 2026, the Company has updated its calculation of adjusted net income and adjusted net income per share to include interest expense. Previously, interest was excluded from this non-GAAP measure as the Company operated without structural debt. Going forward, interest will be included to provide a more comprehensive view of operating performance and to align with evolving best practices. Adjusted net income per diluted share was $0.56, an increase of 24%, including a $0.06 impact from interest expense in both periods.
Adjusted EBITDA was $32 million, an increase of 23%.
Annualized Recurring Revenue (ARR) was $157 million at quarter end, an increase of 31%.
(1) Fiscal 2026 results include the results of Jolt.
Reconciliations of non-GAAP financial measures to their closest GAAP analogs appear at the end of this release, as well as a discussion of recent changes to the method of calculating adjusted net income and adjusted net income per share.
“We’re off to a great start to our fiscal year 2026. Digi’s customer focus is shining through our IoT solutions that drive meaningful ROI. With the addition of Jolt, we delivered double digit growth in ARR, revenue, adjusted EBITDA, and adjusted EPS in our fiscal first quarter,” stated Ron Konezny, President and CEO. “We are thrilled to have the Particle team join the Digi family. Particle’s unique solutions build and manage connected devices, and we have an aligned culture focused on customer value. Our strong cash generation propels a flywheel of organic growth complemented by select acquisitions.”
Additional Financial Highlights
We made payments against our revolving credit facility of $24 million in the first quarter, reducing our outstanding debt as of the end of the first quarter to $135 million and a cash and cash equivalents balance of $31 million resulting in a debt net of cash and cash equivalents of $104 million.
Cash flow from operations was $36 million in the first quarter of fiscal 2026, compared to $30 million in the first quarter of fiscal 2025. This change was driven primarily by a $5.1 million decrease in deferred income tax benefit in the first quarter of fiscal 2026 compared to a $0.5 million increase in the first quarter of fiscal 2025.
Segment Results
IoT Product & Services
The segment's first fiscal quarter 2026 revenue of $86 million increased 11% compared to the same period in the prior fiscal year. This consisted of a $6.3 million increase in one-time sales and $2.2 million of recurring revenue growth, with no material impact from pricing. ARR as of the end of the first fiscal quarter was $34 million, an increase of 26% from the end of the first fiscal quarter of 2025. This increase was due to growth in the subscription base across remote management platforms and extended warranty offerings and technical support. Operating margin decreased 60 basis points to 13.5% of revenue for the first fiscal quarter of 2026, driven by higher inventory related expenses offset by favorable product margin mix and operating expense leverage.
IoT Solutions
The segment's first fiscal quarter 2026 revenue of $36 million increased 39%, as compared to the same period in the prior fiscal year. The increase consisted of a $7.6 million increase in recurring revenue and a $2.5 million increase in one-time sales, both driven primarily by the Jolt acquisition. ARR as of the end of the first fiscal quarter was $123 million, an increase of 32% from the end of the first fiscal quarter of 2025, driven primarily by the acquisition of Jolt, as well as growth in both SmartSense and Ventus. Operating margins increased 370 basis points to 12.9% in the first fiscal quarter of 2026 compared to the prior fiscal year. This increase was the result of favorable operating expense leverage and a higher proportion of volume from recurring revenue, which has a higher margin.
Capital Allocation Strategy
We intend to continue to deleverage the Company's balance sheet.
Acquisitions remain a top capital priority for Digi as reflected by our acquisition of Particle announced on January 27. Particle is a leading provider of edge-to-cloud application infrastructure for intelligent devices that adds approximately $20 million of ARR to Digi’s IoT Products & Services segment.
We will continue to be disciplined in our approach and act when we believe an opportunity is appropriate to execute in the context of prevailing market conditions. We intend to focus more on scale and ARR.
Second Fiscal Quarter & Full Year Fiscal 2026 Guidance
The expansion of software applications and AI adoption continues to drive demand for hardware-enabled software solutions that address our customers’ most critical business needs. Our focus remains on delivering solutions that generate recurring revenue streams and create sustained value for customers well beyond the initial device purchase. We see continued growth and evolution in the Industrial Internet of Things market, reinforcing our confidence in achieving $200 million in both ARR and Adjusted EBITDA over the next three years. Strategic acquisitions aligned with these objectives could accelerate our path to these targets.
The market dynamics favor Digi’s solutions as customers increasingly recognize that legacy 'set it and forget it' approaches no longer meet their operational requirements. Organizations are prioritizing connectivity and software capabilities as fundamental enablers of their strategic initiatives. For fiscal 2026, our guidance reflects both our operational outlook and the January 2026 acquisition of Particle. We anticipate ARR growth of 23%, revenue growth of 14%-18%, and Adjusted EBITDA growth of 17-21%. The impact of Particle and its expected synergies to this guide is approximately $20 million to $22 million in ARR, $13 million to $14 million in Revenue, and $1 million to $2 million in Adjusted EBITDA. After capturing synergies, we expect Particle to contribute $5M to our FY27 Adjusted EBITDA. Particle will be integrated into our IoT P&S Segment and will not be reported on a stand-alone basis.
For the second fiscal quarter, revenues are estimated to be $124 million to $128 million. Adjusted EBITDA is estimated to be between $31.5 million and $33.0 million. New for fiscal 2026, we are including interest expense in our Adjusted net income per diluted share metric and we have done the same for comparison periods. Adjusted net income per diluted share is anticipated to be between $0.56 and $0.59 per diluted share, assuming a weighted average diluted share count of 38.8 million shares. This includes an expected impact from interest between $0.04 and $0.05 per diluted share.
We provide guidance or longer-term targets for Adjusted net income per share as well as Adjusted EBITDA targets on a non-GAAP basis. We do not reconcile these items to their most comparable U.S. GAAP measure as it is not possible to predict without unreasonable efforts numerous items that include but are not limited to the impact of foreign exchange translation, restructuring, interest and certain tax-related events. Given the uncertainty, any of these items could have a significant impact on U.S. GAAP results.
First Fiscal Quarter 2026 Conference Call Details
As announced on January 14, 2026, Digi will discuss its first fiscal quarter results on a conference call on Wednesday, February 4, 2026 at approximately 5:00 p.m. ET (4:00 p.m. CT). The call will be hosted by Ron Konezny, President and Chief Executive Officer and Jamie Loch, Chief Financial Officer.
Participants may register for the conference call at: https://register-conf.media-server.com/register/BI93b4f93773e347adae9eb14b0fc12042. Once registration is completed, participants will be provided a dial in number and passcode to access the call. All participants are asked to dial-in 15 minutes prior to the start time.
Participants may access a live webcast of the conference call through the investor relations section of Digi’s website, https://digi.gcs-web.com/ or the hosting website at: https://edge.media-server.com/mmc/p/n6xi94eu/.
A replay will be available within approximately two hours after the completion of the call for approximately one year. You may access the replay via webcast through the investor relations section of Digi’s website.
A copy of this earnings release can be accessed through the financial releases page of the investor relations section of Digi's website at www.digi.com.
For more news and information on us, please visit www.digi.com/aboutus/investorrelations.
About Digi International
Digi International Inc. (Nasdaq: DGII) is a leading global provider of IoT connectivity products, services and solutions. We help our customers create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security and reliability. Founded in 1985, we’ve helped our customers connect over 100 million things and growing. For more information, visit Digi's website at www.digi.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management’s current expectations and assumptions. These statements often can be identified by the use of forward-looking terminology such as "assume," "believe," "continue," "estimate," "expect," "intend," "may," "plan," "potential," "project," "should," or "will" or the negative thereof or other variations thereon or similar terminology. Among other items, these statements relate to expectations of the business environment in which Digi operates, projections of future performance, including but not limited to expectations regarding the Company’s profitability and net cash position, inventory levels, supply chain normalization, perceived marketplace opportunities, debt repayments, attributions of potential acquisitions and statements regarding our mission and vision. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions. Among others, these include risks related to our ability to realize synergies and operating benefits from acquisitions, like our recent acquisitions of Jolt completed in August 2025, and Particle completed in January 2026, ongoing and varying inflationary and deflationary pressures around the world and the monetary and trade policies of governments globally as well as present and ongoing concerns about a potential recession, the potential for longer than expected sales cycles, the ability of companies like us to operate a global business in such conditions as well as negative effects on product demand and the financial solvency of customers and suppliers in such conditions, risks related to ongoing supply chain challenges that continue to impact businesses globally, regulatory risks that include, but are not limited to, the potential expansion of tariffs and potential changes to regulations impacting the functionality or compliance of our products, risks related to cybersecurity, data breaches and data privacy, risks arising from military conflicts such as those in Ukraine and the Middle East, the highly competitive market in which we operate, rapid changes in technologies that may displace products sold by us, declining prices of networking products, our reliance on distributors and other third parties to sell our products, the potential for significant purchase orders to be canceled or changed, delays in product development efforts, uncertainty in user acceptance of our products, the ability to integrate our products and services with those of other parties in a commercially accepted manner, potential liabilities that can arise if any of our products have design or manufacturing defects, our ability to integrate and realize the expected benefits of acquisitions, our ability to defend or settle satisfactorily any litigation, the impact of natural disasters and other events beyond our control that could negatively impact our supply chain and customers, potential unintended consequences associated with restructuring, reorganizations or other similar business initiatives that may impact our ability to retain important employees or otherwise impact our operations in unintended and adverse ways, and changes in our level of revenue or profitability which can fluctuate for many reasons beyond our control. These and other risks, uncertainties and assumptions identified from time to time in our filings with the United States Securities and Exchange Commission, including without limitation, those set forth in Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended September 30, 2025, and any other subsequent filings, could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Many of such factors are beyond our ability to control or predict. These forward-looking statements speak only as of the date for which they are made. Except to the extent required by law, we do not undertake, and expressly disclaim, any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Presentation of Non-GAAP Financial Measures
This release includes adjusted net income, adjusted net income per diluted share and Adjusted EBITDA (defined below), each of which is a non-GAAP measure.
During the first fiscal quarter of 2026, Digi modified its method of calculating adjusted net income and adjusted net income per share to include the impact of interest expense. This change was primarily driven by the continued use of financing by the Company to fund cash flows needs and therefore including the recurring nature of interest presents a better metric by which management believes provides a more representative view of operating performance and cash-generating capability. Accordingly, we evaluated the impact of this change on prior-period disclosures and have recast adjusted net income and adjusted net income per share for all periods to conform to this presentation.
We understand that there are material limitations on the use of non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures, such as net income, for the purpose of analyzing financial performance. The disclosure of these measures does not reflect all charges and gains that were actually recognized by Digi. These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from non-GAAP measures used by other companies or presented by us in prior reports. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. We believe these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Additionally, Adjusted EBITDA does not reflect our cash expenditures, the cash requirements for the replacement of depreciated and amortized assets, or changes in or cash requirements for our working capital needs.
We believe that providing historical and adjusted net income and adjusted net income per diluted share, respectively, exclusive of such items as reversals of tax reserves, discrete tax benefits, restructuring charges and reversals, intangible amortization, stock-based compensation, other non-operating income/expense, changes in fair value of contingent consideration and acquisition-related expenses related to acquisitions permits investors to compare results with prior periods that did not include these items. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of our comparative operating performance. In addition, certain of our stockholders have expressed an interest in seeing financial performance measures exclusive of the impact of these matters, which while important, are not central to the core operations of our business. Management believes that "Adjusted EBITDA", defined as EBITDA adjusted for stock-based compensation expense, acquisition-related expenses, restructuring charges and reversals, and changes in fair value of contingent consideration, is useful to investors to evaluate our core operating results and financial performance because it excludes items that are significant non-cash or non-recurring items reflected in the Condensed Consolidated Statements of Operations. We believe that presenting Adjusted EBITDA as a percentage of revenue is useful because it provides a reliable and consistent approach to measuring our performance year over year and in assessing our performance against that of other companies. We believe this information helps compare operating results and corporate performance exclusive of the impact of our capital structure and the method by which assets were acquired.
Digi International Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended December 31,
2025
2024
Revenue
$
122,462
$
103,866
Cost of sales
46,071
39,468
Gross profit
76,391
64,398
Operating expenses:
Sales and marketing
25,977
21,757
Research and development
17,154
15,027
General and administrative
16,934
14,255
Operating expenses
60,065
51,039
Operating income
16,326
13,359
Other expense, net
(2,307
)
(2,263
)
Income before income taxes
14,019
11,096
Income tax provision
2,308
1,013
Net income
$
11,711
$
10,083
Net income per common share:
Basic
$
0.31
$
0.27
Diluted
$
0.31
$
0.27
Weighted average common shares:
Basic
37,352
36,680
Diluted
38,239
37,483
Digi International Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31,
2025
September 30,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
30,932
$
21,902
Accounts receivable, net
59,676
63,453
Inventories
39,567
38,911
Income taxes receivable
4,471
1,875
Prepaid expenses and other current assets
6,756
4,558
Total current assets
141,402
130,699
Non-current assets
777,035
791,947
Total assets
$
918,437
$
922,646
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
32,462
35,871
Other current liabilities
81,257
71,939
Total current liabilities
113,719
107,810
Long-term debt
134,951
159,152
Other non-current liabilities
20,563
19,607
Non-current liabilities
155,514
178,759
Total liabilities
269,233
286,569
Total stockholders’ equity
649,204
636,077
Total liabilities and stockholders’ equity
$
918,437
$
922,646
Digi International Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended December 31,
2025
2024
Net cash provided by operating activities
$
35,626
$
29,719
Net cash provided by (used in) investing activities
367
(577
)
Net cash (used in) financing activities
(26,943
)
(30,540
)
Effect of exchange rate changes on cash and cash equivalents
(20
)
(177
)
Net increase (decrease) in cash and cash equivalents
9,030
(1,575
)
Cash and cash equivalents, beginning of period
21,902
27,510
Cash and cash equivalents, end of period
$
30,932
$
25,935
Non-GAAP Financial Measures
TABLE 1
Reconciliation of Net Income to Adjusted EBITDA
(In thousands)
Three months ended December 31,
2025
2024
% of total
revenue
% of total
revenue
Total revenue
$
122,462
100.0
%
$
103,866
100.0
%
Net income
$
11,711
$
10,083
Interest expense, net
2,303
2,294
Income tax provision
2,308
1,013
Depreciation and amortization
10,455
8,500
Stock-based compensation expense
3,987
3,560
Gain on asset sale
(200
)
—
Restructuring charge
457
159
Acquisition expense, net
543
—
Adjusted EBITDA
$
31,564
25.8
%
$
25,609
24.7
%
TABLE 2
Reconciliation of Net Income and Net Income per Diluted Share to
Adjusted Net Income and Adjusted Net Income per Diluted Share
(In thousands, except per share amounts)
Three months ended December 31,
2025
2024
Net income and net income per diluted share
$
11,711
$
0.31
$
10,083
$
0.27
Amortization
7,256
0.19
5,765
0.15
Stock-based compensation expense
3,987
0.10
3,560
0.09
Other non-operating income (expense)
4
—
(31
)
—
Acquisition expense, net
543
0.01
—
—
Gain on asset sale
(200
)
(0.01
)
—
—
Restructuring charge
457
0.01
159
—
Tax effect from the above adjustments (1)
(1,622
)
(0.03
)
(2,323
)
(0.05
)
Discrete tax benefits (2)
(762
)
(0.02
)
(362
)
(0.01
)
Adjusted net income and adjusted net income per diluted share (3)
$
21,374
$
0.56
$
16,851
$
0.45
Diluted weighted average common shares
38,239
37,483
(1)
The tax effect from the above adjustments assumes an estimated effective tax rate of 18.0% for fiscal 2026 and 2025 based on adjusted net income.
(2)
For the three and twelve months ended December 31, 2025 and 2024 discrete tax benefits are a result of changes in excess tax benefits recognized on stock compensation.
(3)
Adjusted net income per diluted share may not add due to the use of rounded numbers.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260204857763/en/
Investor Contact:
Rob Bennett
Investor Relations
Digi International
952-912-3524
Email: rob.bennett@digi.com
Original: Digi International Reports First Fiscal Quarter 2026 Results
US Market News
5 months ago
Digi International Acquires Particle to Accelerate ARR Growth and Strengthen Digi’s Embedded-as-a-Service OfferingJanuary 27, 2026 9:05 PM
Business Wire
Digi International Inc. (“Digi”) (Nasdaq: DGII), a leading global provider of business and mission-critical Internet of Things (IoT) products, services and solutions, today announced its acquisition of Particle Industries, Inc. (“Particle”), a leading provider of edge-to-cloud application infrastructure for intelligent devices. Through their subscription model, Particle enables companies to deliver customer value with easy to deploy intelligent connected products at scale. The acquisition not only transforms the capabilities of Digi’s OEM Solution’s product offerings; it also greatly enhances the recurring revenue profile of Digi’s IoT Products and Services reporting segment.
Particle will be integrated with Digi’s OEM Solution’s offerings within Digi’s IoT Products and Services segment. Particle presently generates approximately $20 million in ARR via its subscription-based sales model and is growing ARR double-digits annually. This greatly advances Digi’s strategy to expand Annual Recurring Revenue (ARR). Digi’s IoT Products and Services segment reported $32 million in ARR as of the end of the fiscal quarter ended September 30, 2025.
"This acquisition positions us to lead the shift toward intelligent, connected product platforms and accelerates annual recurring revenue growth for Digi," said Ron Konezny, President and CEO of Digi International. “By combining Particle and Digi, we now deliver embedded-as-a-service for customers at scale. Together we remove the complexity businesses encounter when embedding connectivity and intelligence for actionable operational insights to drive better business outcomes and efficiencies from edge to cloud.”
"Joining Digi accelerates our mission to make IoT accessible and scalable for businesses of all sizes," said Zach Supalla, CEO of Particle. "Our customers gain the dependability and global scale Digi has been delivering for more than 40 years combined with the innovation, ease-of-use, and developer friendliness that has been Particle’s mainstay for the last decade. It’s a great match, and together we’re set up to accelerate growth and build the next generation of smart, connected products together with our customers."
Particle’s solution seamlessly integrates hardware, universal connectivity across a range of different protocols, application development tools, edge compute, over-the-air software, and artificial intelligence (AI)/machine learning (ML) model deployment as well as integration with existing cloud platforms, application software, and business intelligence systems. Developers write a single line of code to send data across any network, including cellular connectivity that automatically selects the best carrier across 350+ global cellular networks without requiring customers to manage contracts or SIMs separately. Since its initial launch in 2014, more than 250,000 developers have used Particle to design, develop, and deploy intelligent devices.
Some examples of how this highly flexible solution architecture drives meaningful business outcomes for customers across a wide range of industries include:
An oil and gas customer monitors remote wells, delivering a 40% production increase and a 70% reduction in service trips through predictive maintenance.
An energy company retrofits water heaters into grid-interactive storage with 40% ROI and 50% cost savings while providing virtual power plant capacity.
An emissions monitoring provider delivers methane detection systems to reduce methane emissions by 80% versus conventional solutions.
A spa manufacturer offers new connected spa products that offer customers better services and delivers a 6% retail margin lift.
"Combining Digi and Particle enables our customers to ship software to hardware at scale," said Steve Ericson, President of Digi's OEM Solutions Business Unit. "With Particle, we are bringing our Digi ConnectCore modules and Digi XBee wireless solutions and Particle's multi-radio capabilities, proven application infrastructure, and edge AI capabilities together. This combination delivers unique value in the industry, giving our customers everything they need to build, deploy, and manage connected products at scale, with better visibility into product performance and more efficient operations."
Strategic Highlights for Investors
The purchase price of the acquisition was $50 million and was paid in cash net of Particle’s cash and debt and is otherwise subject to customary adjustments. Digi funded the purchase price by utilizing its current credit facility. Moelis & Company LLC served as the exclusive financial advisor to Particle on the transaction.
ARR Growth: Particle’s application infrastructure and subscription model, which is growing double-digits, increases ARR for Digi’s IoT Product and Solutions segment by over 60% and drives new solution-sell opportunities across industries.
Cross-Sell Synergies: Combined capabilities complement each other and drive new opportunities as Particle’s solutions offerings can now leverage Digi’s global sales teams and channel relationships.
Product Innovation: Particle strengthens and accelerates Digi’s global position in edge AI, edge compute, cellular IoT, and differentiated product solutions and services.
Updated Full-Year Fiscal 2026 Guidance to Come
We intend to provide updated annual guidance for our second fiscal quarter and updated annual fiscal 2026 guidance, which will include the impact of this acquisition when we announce first fiscal quarter earnings on February 4, 2026.
A copy of this release can be accessed through the financial releases page of the investor relations section of Digi's website at www.digi.com.
For more news and information on us, please visit www.digi.com/aboutus/investorrelations.
About Digi International
Digi International (NASDAQ: DGII) is a leading global provider of IoT connectivity products, services, and solutions. It helps companies create next generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security and reliability. Founded in 1985, Digi has helped customers connect more than 100 million things and counting. For more information, visit www.digi.com.
About Particle
Particle is the leading application infrastructure for intelligent devices, helping thousands of companies bring intelligence to the edge. Particle provides everything you need to deploy software and models to an Edge AI, edge computing, or IoT product in one tightly-integrated platform. As part of Digi International, Particle continues its mission to make IoT accessible and scalable for businesses of all sizes. For more information, visit www.particle.io.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management’s current expectations and assumptions about the acquisition and its impact on Digi’s business and prospects. These statements often can be identified by the use of forward-looking terminology such as "assume," "believe," "continue," "estimate," "expect," "intend," "may," "plan," "potential," "project," "should," or "will" or the negative thereof or other variations thereon or similar terminology. Among other items, these statements relate to expectations of how the acquisition is expected to impact Digi’s business and financial results, projections of future performance, including (but not limited to) expectations regarding the Digi's ARR, other financial performance measures, and perceived marketplace opportunities. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions. Among others, these include risks related to our ability to realize synergies and operating benefits from the acquisition, ongoing and varying inflationary and deflationary pressures around the world and the monetary and trade policies of governments globally as well as present and ongoing concerns about a potential recession, the potential for longer than expected sales cycles, the ability of companies like us to operate a global business in such conditions as well as negative effects on product demand and the financial solvency of customers and suppliers in such conditions, risks related to ongoing supply chain challenges that continue to impact businesses globally, regulatory risks that include, but are not limited to, the potential expansion of tariffs and potential changes to regulations impacting the functionality or compliance of our products, risks related to cybersecurity, data breaches and data privacy, risks arising from the present military conflicts in Ukraine and the Middle East, the highly competitive market in which we operate, rapid changes in technologies that may displace products sold by us, , our reliance on distributors and other third parties to sell our products, the potential for significant purchase orders to be canceled or changed, delays in product development efforts, uncertainty in user acceptance of our products, the ability to integrate our products and services with those of other parties in a commercially accepted manner, potential liabilities that can arise if any of our products have design or manufacturing defects, our ability to defend or settle satisfactorily any litigation, the impact of natural disasters and other events beyond our control that could negatively impact our supply chain and customers, potential unintended consequences associated with restructuring, reorganizations or other similar business initiatives that may impact our ability to retain important employees or otherwise impact our operations in unintended and adverse ways, and changes in our level of revenue or profitability which can fluctuate for many reasons beyond our control. These and other risks, uncertainties and assumptions identified from time to time in our filings with the United States Securities and Exchange Commission, including without limitation, those set forth in Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended September 30, 2025 and other subsequent filings, could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Many of these factors are beyond our ability to control or predict. These forward-looking statements speak only as of the date for which they are made. Except to the extent required by law, we do not undertake, and expressly disclaim, any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Annualized Recurring Revenue (ARR)
Annualized Recurring Revenue (ARR) represents the annualized monthly value of all billable subscription contracts, measured at the end of any fiscal period. ARR should be viewed independently of revenue and deferred revenue and is not intended to replace or forecast either of these items. Digi management uses ARR to manage and assess the growth of our subscription revenue business. We believe ARR is an indicator of the scale of our subscription business.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260127820853/en/
Investor Contact:
Digi International
Rob Bennett
Director, Investor Relations
(952) 912-3524
Rob.Bennett@digi.com
Original: Digi International Acquires Particle to Accelerate ARR Growth and Strengthen Digi’s Embedded-as-a-Service Offering
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