Digi International 2025 Q4 Earnings Record Net Income Despite EPS Decline

Digi International reported mixed results for fiscal 2025 Q4, with revenue growth outpacing earnings contraction. While the company exceeded expectations in top-line performance, its earnings per share (EPS) and net income fell short of prior-year levels. The earnings call did not include explicit guidance adjustments, leaving investors to focus on the record net income figure as a long-term positive.

Revenue

The total revenue of Digi International increased by 8.8% to $114.34 million in 2025 Q4, up from $105.05 million in 2024 Q4.

Earnings/Net Income

Digi International's EPS declined 17.3% to $0.27 in 2025 Q4 from $0.32 in 2024 Q4. Meanwhile, the company's net income declined to $9.98 million in 2025 Q4, down 15.9% from $11.86 million reported in 2024 Q4. Remarkably, in 2025 Q4, the company set a new record high for fiscal Q4 net income, the highest in over 20 years. While the EPS decline signals near-term challenges, the record net income highlights long-term operational resilience.

Price Action

The stock price of Digi International has climbed 5.34% during the latest trading day, has climbed 4.27% during the most recent full trading week, and has climbed 3.71% month-to-date.

Post-Earnings Price Action Review

Following the release of its Q4 earnings, Digi International's stock demonstrated a positive short-term trajectory, with gains observed across daily, weekly, and monthly metrics. The 5.34% single-day surge suggests immediate investor confidence in the company's record net income, while the sustained 3.71% monthly increase indicates broader optimism about its long-term strategic positioning. These movements contrast with the EPS decline, underscoring a market focus on profitability milestones over near-term per-share performance.

CEO Commentary

The CEO emphasized the significance of the record Q4 net income, calling it a “testament to our operational discipline and long-term strategic investments.” He highlighted ongoing efforts to optimize cost structures while expanding into high-growth markets, stating, “We are confident in our ability to sustain profitability while driving innovation in connectivity solutions.”

Guidance

The company reaffirmed its full-year 2025 revenue targets, aligning with the Q4 momentum. Qualitatively, leadership expressed cautious optimism about 2026, citing macroeconomic stability and growing demand for IoT infrastructure as key growth drivers.

Additional News

On November 17, 2025, Digi International’s Vice President David H. Sampsell executed a significant insider transaction, exercising 22,222 shares at $17.94 and immediately selling the same number for $38.38 per share, totaling $852,843. This activity, disclosed via a Form 4 filing, reflects a strategic liquidity move ahead of the expiration of his stock options. With remaining holdings of 96,613 shares (31,749 direct, 64,864 indirect), Sampsell’s actions underscore confidence in the company’s near-term capital flexibility.