Digi International Q4 gross profit margin falls; revenue up
DGII•Digi International’s fiscal fourth-quarter revenue rose 25% to $143.32 million, while gross profit margin fell 20 basis points. Adjusted EPS increased 47% to $0.78, beating the $0.76 consensus estimate.
1. Quarterly results
Digi International reported fiscal fourth-quarter revenue of $143.32 million, up 25% and above the $140.33 million consensus estimate. Adjusted EPS rose 47% to $0.78, beating the $0.76 estimate. Gross margin was 63.70%, down 20 basis points; net income was $14.94 million.
2. Fiscal 2027 outlook
The company expects fiscal 2027 annual recurring revenue growth of at least 15% and revenue growth of 10% to 15% versus fiscal 2026. For the first quarter, it forecasts revenue of $140 million to $144 million and adjusted EBITDA of $39.5 million to $41 million.
3. Growth drivers
Digi said the Particle and Jolt acquisitions contributed to recurring revenue and ARR growth, particularly in IoT Products & Services and IoT Solutions. Higher customer demand drove organic revenue growth in both IoT segments, while revenue expanding faster than operating costs improved operating expense efficiencies.
