NASDAQ$DGII

Digi Intl Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Digi Intl Inc reported Q3 2025 results with revenue growth and margin expansion.

Digi International reported total revenue of $107.5 million for the three months ended June 30, 2025, up 2% year-over-year, with net income of $10.2 million. Gross profit margin improved 430 basis points to 63.5% driven by favorable product mix. ARR grew 12% to $126 million while adjusted EBITDA reached $27.6 million.

  • Q3 revenue reached $107.5 million, a 2% increase, led by IoT Solutions growth of 9%.
  • Gross margin expanded 430 bps to 63.5% on favorable product mix in IoT Products & Services.
  • ARR increased 12% year-over-year to $126 million, reflecting subscription momentum.
  • Adjusted EBITDA rose 11% to $27.6 million, representing 25.6% of revenue.

Headline financials

Total Revenue

$108M

Previous: $105M+2.2%
EPS (adj)

$0.53

Previous: $0.26+103.8%
Adjusted EBITDA

$27.6M

Previous: $24.7M+11.5%
ARR

$126M

Previous: $113M+12.0%
Net Income

$10.2M

Previous: $9.7M+5.6%
Operating Income

$14.9M

Previous: $12.9M+15.6%
Gross Profit

$68.3M

Previous: $62.3M+9.7%
Cash & Equivalents

$20.1M

Previous: $28.3M-29.1%
Total Assets

$770M

Previous: $820M-6.1%

Revenue & EPS history

Digi · Revenue · Quarterly

$108M

Q3 2025+2.2%vs Q3 2024
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Digi · $108M total across 2 segments · Q3 2025

  • IoT Products & Services
    $80M
  • IoT Solutions
    $27.5M

Forward guidance

Management expects continued focus on subscription transition and customer service amid longer sales cycles and tariff uncertainty.

Tailwinds

  • ARR growth trajectory remains strong
  • Margin expansion from product mix

Headwinds

  • Extended sales cycles may persist
  • Tariff impacts remain uncertain

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports

Historical avg

+1.6%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+18.2%

Q1 2019

Best reaction

-23.3%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2026+5.4%+4.5%+12.0%
Q1 2026-3.9%-1.1%+4.9%
Q4 2025+6.8%+7.1%+26.5%
Q2 2025+14.0%+21.4%+21.8%
Q1 2025+17.3%+15.5%-4.9%
Q4 2024-2.9%-5.0%+1.7%
Q3 2024+17.9%+16.9%+16.0%
Q2 2024-16.8%-11.9%-20.5%
Q1 2024+10.0%+13.3%+18.6%
Q4 2023-7.1%-1.0%+1.2%
Q3 2023-23.3%-22.4%-20.6%
Q2 2023+8.8%+9.0%+26.3%
Q1 2023+0.8%+2.7%-2.5%
Q4 2022+9.5%+13.6%+8.2%
Q3 2022+13.4%+9.1%+7.8%
Q2 2022+4.2%+3.1%+34.1%
Q1 2022-6.7%-9.5%-9.8%
Q4 2021+10.2%+6.6%+7.7%
Q3 2021-2.3%-0.1%+5.7%
Q2 2021-2.0%-2.0%+5.5%
Q1 2021+17.3%+28.3%-9.3%
Q4 2020-5.4%-0.7%+6.4%
Q3 2020+12.3%+8.6%+6.7%
Q2 2020+14.5%+5.9%+10.7%
Q1 2020-3.7%-15.2%-19.3%
Q4 2019+17.5%+23.2%+15.1%
Q3 2019+4.8%+10.2%+4.4%
Q2 2019-1.3%-3.4%-15.7%
Q1 2019+18.2%+17.7%+14.0%
Q4 2018+13.5%+6.1%+0.4%
Q3 2018+0.7%+0.4%-1.9%
Q2 2018-1.3%+1.3%+4.8%
Q1 2018+1.0%+0.5%+2.4%
Q4 2017+1.4%+0.5%+0.5%
Q3 2017-1.0%+2.5%-7.2%
Q2 2017-13.0%-18.9%-19.5%
Q1 2017-1.1%-4.0%-5.1%
Q4 2016-10.6%-10.1%+24.9%
Q3 2016-1.7%-3.0%+3.7%
Q2 2016+13.5%
Q1 2016-15.6%
Q4 2015+8.7%
Q3 2015+3.0%
Q2 2015+6.4%
Q1 2015+8.3%
Q4 2014+4.2%
Q3 2014-6.2%
Q2 2014-11.3%
Q1 2014-16.7%
Q4 2013+1.6%
Q3 2013+4.3%
Q2 2013-0.2%
Q1 2013-0.9%
Q4 2012-1.7%
Q3 2012+1.8%
Q2 2012-16.0%
Q1 2011+3.6%
Q1 2012-3.8%
Q4 2009+4.4%
Q2 2011+4.4%
Q4 2011+4.4%
Q3 2010-2.2%
Q4 2010-2.2%
Q3 2011-2.2%
Q2 2010+1.3%

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