DGII DIGI INTERNATIONAL INC

Overview and Growth

In fiscal 2025, DIGI INTERNATIONAL INC recorded $430.22M of revenue, net income of $40.80M, and an operating cash inflow of $107.96M. The $430.22M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 1.5% from $424.05M in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were $1.08, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 77.0% from $0.61 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.47x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $270.68M as gross profit before recognizing operating expenses and other items. Gross profit represented 62.9% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $56.29M, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 13.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $40.80M for the fiscal year. Measured against reported revenue, net income produced a 9.5% margin after operating costs and the remaining recognized items. Pretax income was $49.92M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 11.6% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $9.11M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 18.3% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

The company held $922.65M of assets against $286.57M of liabilities and $636.08M of equity, revealing how the asset base was financed. The near-term balance sheet paired $130.70M of current assets with $107.81M of current liabilities at the reporting date. At 1.21x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $21.90M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 20.3%, excluding receivables and other current assets. The company carried $159.15M of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 0.25x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 17.2%, showing how much of the asset base was matched by borrowing. Liabilities represented 31.1% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 2.4% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Cash flow from operations was $107.96M, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 2.65x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $2.63M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 2.4%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $105.33M of positive free cash flow for the period. The free-cash-flow margin was 24.5%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 11.4%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Sep 30, 2025. Analysis generated Oct 21, 2026.