Digital Ally (DGLY) AI Stock Analysis

• Market Cap: $3.15M
• Dividend Yield: N/A
• Average Volume (3M): 47.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -9.62%
• EPS Growth: 95.79%
• Country: US
• Employees: 31
• Sector: Communication Services
• Sector Strength: 97
• Industry: Security & Protection Services
• EPS (TTM): -0.59
• Shares Outstanding: 1,898,436
• 10 Day Avg. Volume: 99,163
• 30 Day Avg. Volume: 47,863
• PEG Ratio: 4.77
• Price to Book (P/B): -477.68
• Price to Sales (P/S): 189.97
• P/FCF Ratio: -707.09
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: -0.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $1.50 ▲(14.50% Upside)

Digital Ally's stock score is primarily impacted by its weak financial performance, characterized by ongoing losses and cash flow challenges. Technical analysis provides some neutral signals, but the overall bearish trend persists. Valuation is poor due to negative profitability and lack of dividends, further weighing down the score.

Positive Factors

Innovative Product Launch

The launch of the EVO-CORE in-car video solution enhances Digital Ally's product lineup, offering advanced features like handsfree voice commands and real-time transcription, which can strengthen its competitive position in the law enforcement technology sector.

Revenue Growth

The increase in Q3 revenue indicates positive momentum in sales, suggesting that Digital Ally's strategic focus on subscription-based sales and restructuring efforts are beginning to yield results, potentially leading to sustained growth.

Operational Efficiency

The significant improvement in operating income due to reduced overhead and efficient cost management reflects enhanced operational efficiency, which can contribute to long-term profitability and financial stability.

Negative Factors

Negative Cash Flow

Persistent negative cash flow highlights ongoing financial challenges, which may limit Digital Ally's ability to invest in growth opportunities and could strain its financial resources over time.

Declining Revenue Trend

The historical decline in revenue suggests potential difficulties in maintaining market share and competitiveness, posing a risk to future growth and profitability if not addressed.

Weak Profitability

Sustained negative profit margins indicate challenges in achieving profitability, which could impact Digital Ally's ability to generate shareholder value and reinvest in the business for future growth.

Digital Ally Business Overview & Revenue Model

Company Description

Digital Ally, Inc. (DGLY) is a technology company specializing in the development and manufacturing of digital video recording equipment and software solutions primarily for law enforcement and public safety agencies. The company offers a range of products, including body-worn cameras, in-car video systems, and evidence management software, aimed at enhancing accountability, transparency, and operational efficiency within the public safety sector. Digital Ally operates in the law enforcement technology sector and serves a growing market focused on providing innovative solutions for crime prevention and investigation.

How the Company Makes Money

Digital Ally generates revenue through the sale of its hardware products, including body-worn cameras and in-car video systems, which are often sold to law enforcement agencies. Additionally, the company offers subscription-based services for data storage and management through its software solutions, creating a recurring revenue stream. Key partnerships with law enforcement agencies and government contracts are significant contributors to its earnings, allowing the company to secure long-term sales and service agreements. Furthermore, Digital Ally may benefit from ongoing maintenance and support contracts related to its products, enhancing its overall revenue potential.

Digital Ally Financial Statement Overview

Summary

Digital Ally faces substantial financial challenges across all verticals. Despite some improvements in gross profit margin and free cash flow growth, the company struggles with profitability, leverage, and cash flow generation. The negative net income and cash flow trends suggest a need for strategic adjustments to achieve financial stability and growth.

Income Statement

Digital Ally's income statement reveals significant challenges. The company has experienced a decline in revenue over the years, with a slight recovery in the TTM period. Margins are concerning, with negative net profit and EBIT margins indicating ongoing losses. The gross profit margin has improved in the TTM period, but overall profitability remains weak.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio is relatively low in the TTM period, suggesting manageable leverage. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments. The equity ratio has decreased, reflecting a potential risk in financial stability.

Cash Flow

Cash flow analysis highlights significant issues. The company has consistently reported negative operating and free cash flows, indicating cash burn. Although there is a slight improvement in free cash flow growth in the TTM period, the operating cash flow to net income ratio remains negative, pointing to inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.61M	19.65M	28.25M	37.01M	21.41M	10.51M
Gross Profit	4.69M	5.49M	5.76M	2.32M	5.66M	4.06M
EBITDA	-8.21M	-15.88M	-20.11M	-16.66M	26.38M	-2.00M
Net Income	-11.11M	-19.84M	-25.69M	-19.28M	25.47M	-2.63M
Balance Sheet
Total Assets	25.96M	27.74M	47.03M	56.67M	82.99M	20.80M
Cash, Cash Equivalents and Short-Term Investments	622.82K	454.31K	680.55K	3.53M	32.01M	4.36M
Total Debt	3.78M	8.66M	9.92M	1.78M	2.18M	996.76K
Total Liabilities	17.81M	36.75M	35.58M	20.33M	27.13M	6.44M
Stockholders Equity	9.29M	-7.82M	10.78M	35.89M	55.81M	14.36M
Cash Flow
Free Cash Flow	-10.74M	-5.28M	-10.13M	-20.77M	-25.44M	-13.97M
Operating Cash Flow	-10.35M	-5.11M	-9.89M	-18.58M	-17.83M	-13.27M
Investing Cash Flow	38.00K	387.55K	-240.71K	-2.94M	-19.12M	-1.50M
Financing Cash Flow	10.32M	4.40M	7.38M	-6.95M	64.60M	18.78M

Digital Ally Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGLY, the sentiment is Negative. The current price of 1.31 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.78, and below the 200-day MA of 33.51, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 59.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DGLY.

Digital Ally Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SPCB	54 Neutral	$41.55M	26.70	―	―	―	―
VRME	48 Neutral	$11.46M	-2.69	-44.14%	―	-14.21%	-20.44%
BKYI	47 Neutral	$8.91M	―	-143.60%	―	-1.19%	86.72%
GFAI	41 Neutral	$17.77M	-1.87	-21.54%	―	4.38%	74.69%
DGLY	41 Neutral	$3.15M	―	-233.66%	―	-9.62%	95.79%

Digital Ally Corporate Events

Digital Ally Reports Mixed Q3 2025 Financial Results

Digital Ally, Inc., a diversified technology company, operates in the video solutions, revenue cycle management, and entertainment sectors, offering digital video imaging products, healthcare services, and ticketing solutions. In its latest earnings report for the quarter ended September 30, 2025, Digital Ally highlighted a mixed financial performance with a decrease in total revenue compared to the previous year. The company reported total revenue of $4.54 million for the quarter, a slight increase from the previous quarter but a decrease from the $4.05 million reported in the same period last year. The company’s service and other revenue saw an increase, while product revenue experienced a decline. Digital Ally’s gross profit for the quarter was $1.37 million, down from $1.74 million in the same quarter last year, reflecting increased costs in both product and service segments. Despite the challenges, the company managed to reduce its operating loss to $1.12 million, a significant improvement from the $7.38 million loss reported in the same period last year. Looking forward, Digital Ally remains focused on leveraging its diverse business segments to drive growth and improve profitability, as indicated by the management’s strategic initiatives and financial adjustments.

Digital Ally Reports Strong Q3 2025 Financial Results

Digital Ally, Inc. announced improved financial results for the third quarter of 2025, with a 12% increase in revenue to $4.5 million and a significant reduction in SG&A expenses by 72.7%. The company reported an operating loss improvement of 84.8% compared to the previous year, alongside a notable enhancement in stockholders’ equity and working capital. These results reflect the company’s successful cost reduction strategies and restructuring efforts, particularly in its law enforcement product sales organization, despite challenging economic conditions affecting its primary customer base. Additionally, a $14.3 million public equity offering earlier in 2025 bolstered the company’s liquidity, ensuring compliance with Nasdaq listing requirements.

The most recent analyst rating on (DGLY) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Digital Ally stock, see the DGLY Stock Forecast page.

Digital Ally Amends Stock Purchase Agreement

On November 7, 2025, Digital Ally, Inc. amended a Common Stock Purchase Agreement with an investor, initially dated September 15, 2025. This amendment involves a commitment fee paid in shares and cash, impacting stockholder equity and future financing strategies.

The most recent analyst rating on (DGLY) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Digital Ally stock, see the DGLY Stock Forecast page.

Digital Ally Secures $750K in Convertible Notes Deal

On September 15, 2025, Digital Ally, Inc. completed the initial closing of a Securities Purchase Agreement with an investor, issuing Senior Secured Convertible Notes and warrants, resulting in gross proceeds of $750,000. The company also entered into a Common Stock Purchase Agreement, securing a committed equity financing facility of up to $25 million, allowing for strategic financial flexibility and potential market expansion.

The most recent analyst rating on (DGLY) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Digital Ally stock, see the DGLY Stock Forecast page.