DGII — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-05

• judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

• •Operating margin was 16.5%, an increase of 260 basis points.

• •Net income per diluted share was $0.40, an increase of 48%.

• •Adjusted net income per diluted share was $0.75, an increase of 47%.

• •Annualized Recurring Revenue ("ARR") was $191 million at quarter end, an increase of 52%.

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• •Adjusted net income per diluted share was $0.62, an increase of 29%.

• •Annualized Recurring Revenue ("ARR") was $184 million at quarter end, an increase of 50%.

• (1) Fiscal 2026 results include the results of Jolt for the full six-month period and Particle following the January 2026 acquisition date.

• Monetary and fiscal policies continue to fluctuate globally in response to inflationary and deflationary pressures. These situations could all lead to potential adverse impacts on a wide range of businesses and could affect the businesses of our

• vendors and customers in ways that could harm our business. Due to the war in Ukraine, sanctions remain imposed on trade with Russia and Belarus which has the potential to disrupt the supply of raw materials needed to make components. Political tensions between China and other nations have intensifi…

Text added vs the prior filing · source: 10-Q · 2026-08-05

• Artificial intelligence (“AI”) tools may enable threat actors to discover and exploit vulnerabilities in our products and infrastructure, and to conduct more sophisticated attacks, faster than we are able to respond.

• Frontier AI models offered by major developers, as well as various open-source models that are more difficult for governments to regulate, are increasingly capable of automating vulnerability discovery, accelerating the development of exploits, and identifying security weaknesses across complex prod…

• Our product portfolio includes devices across a range of patchability profiles. Some products support over-the-air updates; others require full firmware replacement; others depend on OEM licensees to develop and distribute patches to end customers; and a legacy population of devices cannot be fully …

• Several of our management platforms are cloud-based and operate at a layer above individual devices, aggregating access across many devices and customers. A security incident affecting any one of these platforms could affect multiple enterprise customers simultaneously, which is categorically differ…

• The volume of vulnerabilities identified across our product lines and internal systems may also increase materially as AI-assisted discovery tools become more widely available to both security researchers and malicious actors. Our ability to triage, assess, and remediate vulnerabilities at elevated …