ARR remains our top priority of Digi, benefiting visibility and profitability.
— Ronald Konezny
03Detailed Report
DGII
Company DGII
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
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Executive Summary
Digi International reported Q2 2024 revenue of $107.7 million with a gross margin of 53.1% and operating income of $8.15 million, translating to an EBITDA of $16.25 million and net income of $3.99 million (EPS $0.11). The quarter featured a record level of annualized recurring revenue (ARR) and a materials-managed balance sheet, as Digi continued to tilt toward ARR-driven profitability. Management underscored ARR as the company’s top priority and highlighted meaningful progress in the IoT Solutions segment, driven by enterprise opportunities and longer-term contracts.
Key Performance Indicators
Revenue
Decreasing
107.70M
QoQ: 1.52% | YoY: -3.10%
Gross Profit
Decreasing
57.17M
53.09% margin
QoQ: -6.43% | YoY: -9.06%
Operating Income
Increasing
8.15M
QoQ: -32.82% | YoY: 112.60%
Net Income
Decreasing
3.99M
QoQ: 230.78% | YoY: -32.29%
EPS
Decreasing
0.11
QoQ: 230.18% | YoY: -31.25%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of core metrics with YoY and QoQ context:
- Revenue: $107.70 million; YoY -3.1%; QoQ +1.5%
- Gross Profit: $57.17 million; Gross Margin 53.1%; YoY -9.1%; QoQ -6.4%
- Operating Income: $8.15 million; Margin ~7.57%; YoY +112.6%; QoQ -32.8%
- EBITDA: $16.25 million; EBITDA Margin ~15.1%
- Net Income: $3.99 million; Net Margin ~3.71%; YoY -32.3%; QoQ +230.8%
- EPS: $0.11; Diluted EPS $0.11; YoY -31.3%; QoQ +230.2%
- ARR (recurring revenue): Record level; highlighted by Digi’s strategy to expand ARR through Solutions and SmartSense wins
- Cash Flow: Operating cash flow $13.06 million; Free cash flow $12.54 million; Net change in cash: -$7.75 million; Cash at period end $23.80 million
- Balance Sheet: Total assets $825.3 million; Total liabilities $275.7 million; Stockholders’ equity $549.6 million; Net debt $163.7 million; Cash and cash equivalents $23.80 million
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
107.70M
-3.10%
1.52%
Gross Profit
57.17M
-9.06%
-6.43%
Operating Income
8.15M
112.60%
-32.82%
Net Income
3.99M
-32.29%
230.78%
EPS
0.11
-31.25%
230.18%
Key Financial Ratios
Gross Profit Margin
Good
53.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
7.57%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
3.71%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.48%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.73%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.05
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.34
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
High Growth
71.22x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
2.07x
Price-to-book ratio reasonable for profitable companies
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