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Digi International Tops Q4 Estimates, Issues Upbeat Q1 Outlook as Shares Jump

Management reports recurring revenue at roughly 35% of sales following the Jolt integration.

Overview

  • Q4 adjusted EPS came in at $0.56 on revenue of $114.338 million, topping consensus of $0.51 and $110.248 million.
  • Q1 guidance calls for adjusted EPS of $0.53–$0.58 and revenue of $114–$118 million, slightly above Street forecasts.
  • Management said annual recurring revenue represents about 35% of total sales, reflecting progress in its solutions model.
  • The August purchase of Jolt Software is being integrated into SmartSense, with management citing favorable market reception.
  • Shares rose roughly 7% to $38.47 as Craig‑Hallum upgraded to Buy and Piper Sandler and Roth Capital lifted price targets.