Digi International sees Q3 EPS 47c-51c, consensus 49c

The company states: “With resilient execution in the rapidly expanding Industrial Internet of Things, Digi aims to grow ARR and Adjusted EBITDA to $200 million within the next 4 years. Strategic acquisitions aligned with these key metrics could accelerate this timeline, unlocking incrementally greater value. ARR growth remains our top strategic priority which we intend to expand by delivering high-value solutions that help customers achieve their most critical objectives. The current dynamic global political landscape is impacting economic policies, regulations, taxation and market conditions. This means adaptability is more crucial than ever. Demand for Digi’s solutions, however, remains strong as we deliver meaningful ROI for our customers and help them succeed. Taking into account the current tariff landscape as well as presently expected timing of operational investments, we are increasing our profit outlook for fiscal 2025. Our outlook for revenue and ARR remains unchanged, meaning revenue projects to be approximately flat year over year while ARR projects to grow 10%. We now project Adjusted EBITDA to grow 5% year over year, up from our past projection of roughly flat year over year. The increased performance in profit also is increasing our outlook on cash flow from operations. We anticipate increasing our paydown on outstanding principle debt, putting us in a net cash positive position at fiscal year end. For the third fiscal quarter, revenues are estimated to be $104 million to $108 million. Adjusted EBITDA is estimated to be between $25.0 million and $26.5 million. Adjusted net income per share is anticipated to be between $0.47 and $0.51 per diluted share, assuming a weighted average diluted share count of 37.9 million shares.”