Operational efficiency remains high, with an OCF/NI ratio of 3.69 in 2026Q2 and a consistently low CapEx/Revenue ratio that has remained below 1% over the last ten quarters.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 129.34M | 107.96M | 83.09M | 36.75M | 37.74M | 57.72M | 34.48M | 28.96M | -2.78M | 2.48M | 27.09M | 14.07M | 1.81M | 11.75M | 15.13M | 21.84M | 16.1M | 15.69M | 24.07M | 26.38M | 20.44M | 18.06M | 19.32M | 15.79M | 10.33M | 10.47M | 27.36M | 33.3M | 10.4M | 36.7M | -1.7M |
| Operating CF Margin % | - | 25.09% | 19.6% | 8.26% | 9.72% | 18.7% | 12.35% | 11.39% | -1.22% | 1.36% | 13.34% | 6.61% | 0.94% | 6.01% | 7.94% | 10.7% | 8.82% | 9.45% | 13.01% | 15.22% | 14.13% | 14.42% | 17.37% | 15.34% | 10.18% | 8.03% | 20.65% | 17.21% | 5.69% | 22.16% | -0.87% |
| Operating CF Growth % | 80.73% | 29.93% | 126.09% | -2.62% | -34.62% | 67.42% | 19.04% | 1142.62% | -212.24% | -90.86% | 92.48% | 678% | -84.6% | -22.34% | -30.73% | 35.64% | 2.65% | -34.83% | -8.75% | 29.08% | 13.18% | -6.55% | 22.39% | 52.76% | -1.32% | -61.73% | -17.83% | 220.19% | -71.66% | 2258.82% | -110.83% |
| Net Income | 43.24M | 40.8M | 22.5M | 24.77M | 19.38M | 10.37M | 8.41M | 9.96M | 1.3M | 9.37M | 16.71M | 6.59M | 1.75M | 5.8M | 7.62M | 11.02M | 8.94M | 4.08M | 12.35M | 19.77M | 11.11M | 17.66M | 8.66M | -37.27M | -12.78M | -1.78M | -16.82M | 3.2M | -22.7M | -15.8M | 9.3M |
| Depreciation & Amortization | 39.03M | 0 | 33.62M | 33.96M | 37.57M | 20.88M | 19.3M | 13.4M | 12.27M | 5.5M | 4.61M | 5.86M | 7.15M | 7.88M | 7.82M | 9.18M | 10.13M | 10.06M | 9.32M | 10.16M | 10.57M | 8.87M | 8.6M | 10.3M | 11.57M | 9.9M | 12.76M | 18.8M | 7.7M | 6.7M | 6.3M |
| Stock-Based Compensation | 11.85M | 0 | 13.16M | 13.29M | 8.58M | 8.13M | 7.24M | 5.66M | 4.85M | 4.66M | 3.65M | 4.3M | 4.33M | 3.77M | 3.73M | 3.44M | 3.38M | 3.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -1.32M | 0 | -11.76M | -12.74M | -3.39M | -4.6M | -3.36M | -799K | -508K | -2.11M | 1.11M | -769K | -2.68M | -2.06M | -2.45M | -1.21M | -3.66M | -3.14M | -1.62M | -115K | 1.7M | 1.05M | 1.45M | -2.6M | -135.8K | -2.2M | -5.23M | -2.1M | -800K | -1.8M | -400K |
| Other Non-Cash Items | 4.62M | 42.99M | 13.88M | -806K | -6.39M | 8.19M | 5M | -849K | 4.3M | -343K | -808K | 862K | 998K | 2.59M | 2.99M | 1.65M | 535K | 1.03M | 5.23M | 2.68M | 1.74M | 1.72M | 1.55M | 43.95M | 10.05M | 6.17M | 30.56M | -100K | 100K | 26.6M | 100K |
| Working Capital Changes | 31.93M | 24.17M | 11.69M | -21.72M | -18.02M | 14.75M | -2.12M | 1.6M | -25M | -14.6M | 1.81M | -2.77M | -9.73M | -6.24M | -4.57M | -2.24M | -3.23M | 140K | -3.1M | -5.7M | -6.51M | -11.25M | -937K | 1.41M | 1.63M | -1.61M | 6.1M | 6.9M | -18M | 21M | -22.8M |
| Change in Receivables | 0 | 7.54M | -13.64M | -5.56M | -114K | 11.47M | 5.54M | -6.59M | -17M | 833K | -1.19M | -1.79M | -2.73M | -2.37M | -343K | -2.76M | -6.53M | 5.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 8.23M | 8.79M | -5.06M | -34.47M | 5.88M | -11.13M | -1.06M | -9.19M | -4.48M | 3.99M | -1.91M | -5.97M | -2.97M | -1.96M | 623K | -891K | 2.69M | -3.09M | -4.45M | -2.88M | -602K | -385K | 835.28K | 2.51M | 82.5K | 898.34K | -1.6M | -600K | 3.8M | -7.8M |
| Change in Payables | 0 | 9.62M | 6.45M | -15.5M | 7.28M | -5.58M | 3.21M | 8.23M | 2.73M | -3.54M | 1.61M | -3.77M | 970K | 1.41M | -1.76M | -1.23M | 1.49M | -4.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -196.9M | -148.33M | 3K | -4.34M | -349.53M | -21.36M | -137M | 5.51M | -23.34M | -3.74M | -3.78M | -19.45M | 16.58M | -19.74M | -10.95M | -22.4M | -15.17M | 25.29M | -22.37M | -28.71M | -23.2M | -30.07M | -24.99M | -19.45M | -5.47M | -17.37M | -8.98M | -17.5M | -35.2M | -15.3M | 10.9M |
| Capital Expenditures | -2.59M | -2.63M | -2.23M | -4.34M | -1.97M | -2.26M | -899K | -9.34M | -1.84M | -1.77M | -2.73M | -4.5M | -3.42M | -2.89M | -3.95M | -2.74M | -2.98M | -3.86M | -4.42M | -2.9M | -1.33M | -1.33M | -1.29M | -1.69M | -1.32M | -1.63M | -2.54M | -4.8M | -33.2M | -8.8M | -12.9M |
| CapEx % of Revenue | 0.55% | 0.61% | 0.52% | 0.98% | 0.51% | 0.73% | 0.32% | 3.67% | 0.81% | 0.98% | 1.34% | 2.11% | 1.78% | 1.48% | 2.07% | 1.34% | 1.63% | 2.33% | 2.39% | 1.67% | 0.92% | 1.06% | 1.16% | 1.64% | 1.3% | 1.25% | 1.92% | 2.48% | 18.15% | 5.31% | 6.59% |
| Acquisitions | -48.91M | -145.7M | 0 | 0 | -347.55M | -19.11M | -136.1M | 10.1M | -54.26M | -27.11M | -11K | 45K | 3.42M | -12.92M | 0 | -3M | -3M | -2.99M | -31.85M | -781K | -16.1M | -53.69M | -1.96M | 0 | -13.35M | -10.09M | 0 | 800K | 0 | 0 | 1.1M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -145.4M | 0 | 2.23M | 0 | 0 | 0 | 0 | 10.1M | 731K | 28.14M | 1.81M | 1.4M | -3.42M | -3.93M | 65.53M | -2.74M | 11K | 0 | 5.25M | 950K | 247K | 0 | 0 | -2.02M | 8.06M | 0 | 0 | 100K | -2M | -6.5M | 100K |
| Cash from Financing | 72.98M | 34.62M | -89.05M | -34.5M | 192.78M | 62.24M | 63.6M | 1.11M | 5.83M | 3.06M | 7.75M | 5.14M | -10.96M | -10.79M | 2.31M | 4.64M | 2.6M | -5.43M | -2.56M | 4.81M | 5.56M | 4.89M | 7.11M | -12.48M | -1.81M | -1.62M | 151K | -3.8M | 4.6M | 1.1M | -5.4M |
| Debt Issued (Net) | 72.72M | 35.7M | -90.66M | -36.38M | 201.88M | -15.01M | 63.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9K | -336K | -361K | -369K | -490K | -1.43M | -2.15M | -4.8M | -2.53M | -2.91M | -1.37M | -5.9M | 1.9M | 0 | 0 |
| Equity Issued (Net) | 7.67M | 5.81M | 0 | 0 | 0 | 73.83M | 0 | 0 | -748K | -938K | -550K | -2.34M | -15.7M | -10.86M | 0 | 0 | 0 | -6.58M | -2.39M | 4.56M | 5.32M | 6.32M | 9.26M | -7.67M | 714.38K | 776.41K | 1.52M | 2.2M | 2.6M | 1.1M | -5.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -1.79M | -1.07M | -748K | -938K | -550K | -2.34M | -15.7M | -14.06M | 0 | 0 | 0 | -6.58M | -5.1M | 0 | 0 | 0 | 0 | -8.55M | 0 | 0 | 0 | -800K | -200K | 0 | -7M |
| Other Financing | -7.42M | -6.89M | 1.61M | 1.88M | -9.1M | 3.42M | 478K | 1.11M | 6.58M | 4M | 8.3M | 7.48M | 4.74M | 67K | 2.31M | 4.64M | 2.61M | 1.49M | 184K | 621K | 726K | 0 | 0 | -227 | 0 | 515.28K | 0 | -100K | 100K | 0 | -100K |
| Net Change in Cash | 5.45M | -5.61M | -4.18M | -3.21M | -117.53M | 98.3M | -38.66M | 34.78M | -20.21M | 2.5M | 30.71M | -2.47M | 6.17M | -18.93M | 5.56M | 3.74M | 2.51M | 34.26M | -4.2M | 2.7M | 2.68M | -6.54M | 2.3M | -16.26M | 3.14M | -8.44M | 17.82M | 10.6M | -21M | 1.1M | 3.8M |
| Free Cash Flow | 126.75M | 105.33M | 80.87M | 32.41M | 35.77M | 55.47M | 33.58M | 19.63M | -4.62M | 702K | 24.36M | 9.57M | -1.61M | 8.86M | 11.17M | 19.1M | 13.13M | 11.82M | 19.64M | 23.48M | 19.11M | 16.73M | 18.03M | 14.1M | 9.02M | 8.85M | 24.82M | 28.5M | -22.8M | 27.9M | -14.6M |
| FCF Margin % | 26.68% | 24.48% | 19.07% | 7.28% | 9.21% | 17.97% | 12.02% | 7.72% | -2.02% | 0.39% | 12% | 4.5% | -0.84% | 4.54% | 5.86% | 9.36% | 7.19% | 7.13% | 10.62% | 13.55% | 13.21% | 13.36% | 16.21% | 13.69% | 8.88% | 6.78% | 18.73% | 14.73% | -12.47% | 16.85% | -7.46% |
| FCF Growth % | 20.93% | 30.25% | 149.54% | -9.39% | -35.52% | 65.18% | 71.07% | 524.87% | -758.12% | -97.12% | 154.44% | 693.92% | -118.19% | -20.69% | -41.51% | 45.54% | 11.02% | -39.82% | -16.33% | 22.9% | 14.22% | -7.22% | 27.9% | 56.32% | 1.92% | -64.35% | -12.91% | 225% | -181.72% | 291.1% | -339.34% |
| FCF per Share | 3.29 | 2.79 | 2.19 | 0.88 | 0.99 | 1.66 | 1.14 | 0.69 | -0.17 | 0.03 | 0.93 | 0.38 | -0.06 | 0.34 | 0.43 | 0.74 | 0.52 | 0.47 | 0.75 | 0.90 | 0.79 | 0.72 | 0.82 | 0.67 | 0.46 | 0.58 | 1.65 | 1.92 | -1.66 | 2.08 | -1.07 |
| FCF Conversion (FCF/Net Income) | 2.93x | 2.65x | 3.69x | 1.48x | 1.95x | 5.57x | 4.10x | 2.91x | -2.13x | 0.26x | 1.62x | 2.14x | 1.03x | 2.02x | 1.99x | 1.98x | 1.80x | 3.84x | 1.95x | 1.33x | 1.84x | 1.02x | 2.23x | 2.39x | -0.81x | 88.34x | -1.63x | 10.41x | -0.46x | -2.32x | -0.18x |
| Interest Paid | -1.13M | 6.4M | 14.76M | 26.35M | 14.21M | 917K | 3.01M | 1K | 10K | 1K | 9K | 4K | 5K | 42K | 23K | 86K | 159K | 54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 300K | 18.42M | 7.31M | 8.69M | 4.33M | 3.68M | 3.69M | 2.05M | 1.24M | 2.13M | 3.03M | 1.3M | 3.2M | 6.3M | 3.2M | 7.07M | 6.48M | 3.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Industrial cyclicality and inventory
As reported in recent financial filings, DGII consistently generates operating cash flow significantly higher than net income, with the OCF/NI ratio reaching 3.69 in 2026Q2, suggesting that non-cash charges and working capital adjustments are providing a substantial tailwind to the company's reported cash generation profile.
The persistent gap between net income and operating cash flow indicates that the company's earnings quality is heavily influenced by significant depreciation and amortization expenses. Investors should monitor whether this cash conversion efficiency remains sustainable as the company shifts further toward software-based revenue models which typically carry different depreciation profiles.
Based on the provided quarterly data, DGII has demonstrated a strong free cash flow trajectory, with FCF margins climbing from 11.6% in 2024Q2 to a robust 31.4% by 2026Q2, reflecting the company's ability to convert revenue growth into tangible liquidity despite ongoing operational investments.
This upward trend in FCF margins suggests that the company is successfully scaling its high-margin service offerings while keeping capital expenditures minimal. The ability to maintain such high margins while simultaneously investing in growth initiatives warrants further investigation into the durability of these cash flows during potential industrial downturns.
According to historical cash flow statements, DGII maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently remaining below 1% over the last ten quarters, which highlights the asset-light nature of the company's evolving IoT solutions and software-centric business model.
The minimal requirement for maintenance capital expenditure allows the company to retain a significant portion of its operating cash flow for strategic deployment. This low capital intensity appears to be a structural advantage that supports the company's ability to fund acquisitions without relying on external debt financing.
As indicated by the quarterly cash flow data, working capital changes have consistently contributed positively to operating cash flow, with a notable $14.7 million inflow in 2026Q2, suggesting efficient management of receivables and payables during the company's recent period of revenue acceleration.
While these inflows currently bolster the cash position, they may also reflect timing differences in customer payments or inventory management strategies. Analysts should remain cautious, as a reversal in these working capital trends could lead to a temporary contraction in operating cash flow in future periods.
Based on reported figures, DGII has utilized its cash reserves to fund strategic acquisitions, such as the $49.4 million outflow in 2026Q2, demonstrating a clear management preference for inorganic growth to bolster the company's competitive position in the industrial IoT and software services market.
The company's disciplined approach to capital deployment, characterized by minimal share repurchases and a focus on M&A, suggests a strategy aimed at long-term ecosystem expansion. Investors should monitor the integration success of these acquisitions to ensure that the cash deployed translates into sustained, high-margin recurring revenue growth.
Quick answers to the most common questions about buying DGII stock.
Digi International Inc. (DGII) generated $108.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Digi International Inc. (DGII) generated $105.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Digi International Inc. (DGII) spent $2.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.