Digi International's Q1 revenue beats estimates

Overview

• IoT solutions provider's fiscal Q1 revenue rose 18%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat consensus, increasing 24%

• Company reduced outstanding debt to $135 mln

Outlook

• Digi expects fiscal 2026 ARR growth of 23% and revenue growth of 14%-18%

• Company estimates Q2 revenue between $124 mln and $128 mln

• Digi projects Q2 adjusted EBITDA between $31.5 mln and $33.0 mln

Result Drivers

• JOLT ACQUISITION - The acquisition of Jolt drove significant revenue and ARR growth in the IoT Solutions segment

• RECURRING REVENUE GROWTH - Higher proportion of recurring revenue improved operating margins in IoT Solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Digi International Inc is $47.00, about 4.7% above its February 3 closing price of $44.90

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw4Zjnhwa

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