Digi International(US:DGII)2026-02-04 21:08Financial Performance - Revenue for the first quarter of fiscal 2026 was $122 million, an increase of 18% compared to the previous year[81] - Gross profit margin improved to 62.4%, reflecting an increase of 40 basis points[81] - Net income reached $12 million, marking a 16% increase year-over-year[81] - Annualized Recurring Revenue (ARR) was $157 million at quarter end, an increase of 31%[81] - Adjusted EBITDA for the quarter was $32 million, an increase of 23%[81] Future Outlook - The company expects operating margin rates to expand as recurring revenue becomes a larger portion of overall revenue[82] - The market for Industrial IoT products and services is experiencing long-term expansion across various industries[82] Debt and Interest - Debt payments in the first quarter of fiscal 2026 were $24 million, down from $28.3 million in the same period last year[117] - The weighted average interest rate for the Credit Facility was 5.62% as of December 31, 2025[116] Foreign Currency Impact - A 10% change in the average exchange rate for major currencies would have resulted in a 0.9% impact on stockholders' equity due to foreign currency translation[120]