$DGII

DIGI INTERNATIONAL INC

CIK:0000854775|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total Revenue	$ 138,670	$ 107,514	$ 391,875	$ 315,883
Cost of sales:
Amortization of intangibles	1,622	953	4,460	2,859
Total cost of sales	48,744	39,246	141,883	118,284
Gross Profit	89,926	68,268	249,992	197,599
Operating expenses:
Sales and marketing	29,061	23,019	82,564	66,817
Research and development	20,325	16,227	56,759	46,579
General and administrative	17,645	14,099	54,375	42,194
Total operating expenses	67,031	53,345	193,698	155,590
Operating income	22,895	14,923	56,294	42,009
Other expense, net:
Interest expense, net	(1,606)	(932)	(6,129)	(4,562)
Other (expense) income, net	(31)	(31)	(79)	(43)
Total other expense, net	(1,637)	(963)	(6,208)	(4,605)
Income before income taxes	21,258	13,960	50,086	37,404
Income tax provision	5,518	3,717	11,332	6,581
Net income	$ 15,740	$ 10,243	$ 38,754	$ 30,823
Basic net income per common share:
Basic (USD per share)	$ 0.42	$ 0.28	$ 1.03	$ 0.84
Diluted net income per common share
Diluted (USD per share)	$ 0.40	$ 0.27	$ 1.00	$ 0.82
Weighted average common shares:
Basic (shares)	37,776	37,073	37,588	36,902
Diluted (shares)	38,919	37,653	38,646	37,623
Product
Revenue:
Revenue	$ 89,295	$ 74,136	$ 255,602	$ 218,908
Cost of sales:
Cost of sales excluding amortization	37,640	31,537	112,586	95,268
Service
Revenue:
Revenue	49,375	33,378	136,273	96,975
Cost of sales:
Cost of sales excluding amortization	$ 9,482	$ 6,756	$ 24,837	$ 20,157

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income	$ 38,754	$ 30,823
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, equipment and improvements	9,754	8,723
Amortization	23,497	16,441
Stock-based compensation	13,411	11,378
Deferred income tax provision	11,424	(2,518)
Other	(266)	44
Changes in operating assets and liabilities (net of acquisitions)	13,845	15,067
Net cash provided by operating activities	110,419	79,958
Investing activities:
Acquisition of businesses, net of cash acquired	(48,912)	0
Purchase of property, equipment, improvements and certain other intangible assets	(1,956)	(2,148)
Proceeds from Sale of Intangible Assets	300	0
Net cash provide by (used in) investing activities	(50,568)	(2,148)
Financing activities:
Proceeds from long-term debt	33,724	0
Payments on long-term debt	(85,000)	(83,300)
Proceeds from stock option plan transactions	6,786	3,097
Proceeds from employee stock purchase plan transactions	2,269	1,665
Taxes paid for net share settlement of share-based payment options and awards	(11,332)	(6,753)
Net cash provided by financing activities	(53,553)	(85,291)
Effect of exchange rate changes on cash and cash equivalents	(228)	75
Net decrease in cash and cash equivalents	6,070	(7,406)
Cash and cash equivalents, beginning of period	21,902	27,510
Cash and cash equivalents, end of period	27,972	20,104
Supplemental schedule of non-cash investing and financing activities
Interest Paid	6,191	4,764
Income Taxes Paid, Net	2,191	12,919
Transfer of inventory to property, equipment and improvements	(5,916)	(6,859)
Accrual for purchase of property, equipment, improvements and certain other intangible assets	$ (626)	$ (179)

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Sep. 30, 2025
Current assets:
Cash and cash equivalents	$ 27,972	$ 21,902
Accounts receivable, net	62,787	63,453
Inventories	45,010	38,911
Income Taxes Receivable	3,824	1,875
Other current assets	5,669	4,558
Total current assets	145,262	130,699
Property, equipment and improvements, net	32,374	34,022
Intangible assets, net	366,584	350,688
Goodwill	411,604	392,872
Operating lease right-of-use assets	7,220	8,430
Deferred tax assets	455	5,131
Other non-current assets	852	804
Assets	964,351	922,646
Current liabilities:
Accounts payable	35,099	35,871
Accrued compensation	18,529	16,261
Unearned revenue	55,480	40,671
Current portion of operating lease liabilities	2,263	3,361
Income Taxes Payable	117	522
Other current liabilities	17,203	11,124
Total current liabilities	128,691	107,810
Income taxes payable	3,456	3,261
Deferred tax liabilities	10,424	164
Long-term debt	108,130	159,152
Operating lease liabilities	7,995	8,671
Other non-current liabilities	20,502	7,511
Total liabilities	279,198	286,569
Commitments and Contingencies (see Note 11)
Stockholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $.01 par value; 60,000,000 shares authorized; 44,523,864 and 43,641,997 shares issued	445	436
Additional paid-in capital	454,936	437,391
Retained earnings	326,908	288,154
Accumulated other comprehensive loss	(24,606)	(23,794)
Treasury stock, at cost, 6,583,245 and 6,471,074 shares	(72,530)	(66,110)
Total stockholders' equity	685,153	636,077
Total liabilities and stockholders' equity	$ 964,351	$ 922,646