Digi International Inc. Earnings Recaps
Q3 2026
Aug 10, 2026
Shares rallied 15.1% following a quarter marked by strong revenue growth and margin expansion that outpaced prior expectations, alongside an upward revision to full-year guidance.
Key takeaways
- Q3 revenue reached $139 million, up 29% year-over-year, demonstrating solid top-line momentum.
- Gross margins expanded to 64.8%, supporting a robust adjusted EBITDA margin of 29.1% and $40 million in adjusted EBITDA.
- Cash flow from operations increased 38% year-over-year to $33 million, now exceeding the year-to-date adjusted EBITDA on an annualized basis.
- Annual recurring revenue (ARR) hit a record of $191 million, with management projecting at least 27% ARR growth for the full year.
- Q4 guidance was raised to $138–142 million in revenue and $40–41.5 million in adjusted EBITDA, lifting full-year revenue guidance to $529–533 million and adjusted EBITDA to $146–147.5 million, reflecting accelerating profitable growth.
Q2 2026
May 9, 2026
Biote’s shares gained 11.8% following a quarter marked by a voluntary product recall that disrupted sales but highlighted progress in commercial expansion and practitioner engagement, suggesting improving fundamentals despite near-term headwinds.
Key takeaways
- Revenue declined 8.3% to $44.9 million, with procedure revenue down 13.2%, partly due to a $1.7 million impact from a voluntary hormone pellet recall.
- The recall also caused approximately $1.5 million in incremental costs and distracted the sales force from growth initiatives.
- Biote expanded its sales team substantially, adding over 25 new sales personnel in Q1 2026, now nearing the targeted 120 total.
- Training of new practitioners increased 16.5% year-over-year, signaling strong future growth potential given typical six-month lag to contribution.
- Management emphasized a more disciplined sales pipeline focus on higher-value OB/GYN and general practitioners, aiming for more predictable revenue streams.
Q1 2026
Feb 5, 2026
Digi International Inc. reported a robust first quarter of fiscal 2026, achieving record revenues of $122 million, marking an 18% increase year over year, while successfully integrating the acquisition of Particle, contributing to strong annualized recurring revenue (ARR) growth.
Key takeaways
- Quarterly revenues reached $122 million, up 18% year-over-year, with annualized recurring revenue growing 31% to $157 million.
- Adjusted EBITDA was $32 million, a 23% increase year over year, with a record margin of 25.8%.
- Integration of Particle enhances Digi's IoT capabilities, contributing $20 million in ARR and reinforcing the company's market position.
- Digi's operational guidance forecasts ARR growth of 23% and revenue growth of 14% to 18% for fiscal 2026.
- The company is positioned to leverage AI advancements in its product offerings, further enhancing its competitive landscape.