In the latest quarter, Digi International reported a record $122 million in revenue and lifted its annual recurring revenue to $157 million, while generating $36 million of operating cash flow. The company now aims for $200 million in ARR and adjusted EBITDA by fiscal 2028, a goal backed by its recent acquisition of Particle Industries and a growing portfolio of IoT solutions.
Record Q2 Revenue Highlights
Digi’s $122 million top line marks the highest quarterly revenue in its history. Operating cash flow surged to $36 million, showing that growth isn’t just on paper. The ARR climb to $157 million signals strong demand for its integrated IoT services.
Strategic Acquisition of Particle Industries
The purchase of Particle Industries adds a developer‑friendly edge‑to‑cloud platform to Digi’s lineup. Executives say the integration is already accelerating recurring revenue and expanding margins.
Why the acquisition matters
- Seamless device‑to‑data flow reduces friction in IoT projects.
- Embedded‑as‑a‑service capabilities broaden Digi’s solution stack.
- Higher‑margin contracts support the $200 million ARR target.
Impact on IoT Deployments
Digi 360 now bundles cellular hardware, connectivity management, and cloud services with Particle’s platform. For you, that means faster onboarding, fewer custom integrations, and lower total cost of ownership when scaling industrial sensors, fleet tracking, or remote monitoring.
Financial Strength and ARR Goal
Positive cash flow gives Digi the flexibility to fund expansion without heavy reliance on external financing. The company’s pipeline is filled with multi‑year contracts, which should help sustain the ARR acceleration toward the $200 million milestone.
Competitive Landscape
While DigiKey isn’t a direct competitor, its robust component supply chain indirectly supports Digi’s hardware sales. Digi positions itself as the connective tissue that links parts to the cloud, a role that’s becoming increasingly valuable as IoT projects move from pilots to large‑scale rollouts.
Practitioner Benefits
Field engineers can expect simpler device onboarding and over‑the‑air updates, thanks to the unified platform. Fewer integration points free up time to focus on delivering real value to end users.
Outlook and Investor Takeaway
If Digi can turn this record quarter into a steady climb, it could set a new benchmark for mission‑critical IoT providers. The combination of strong cash flow, a clear roadmap, and an expanded solution stack positions the company well to meet its ambitious ARR target and deliver lasting value to investors and customers alike.
