Digi International announced that its Digi Accelerated Linux (DAL) operating system now supports FIPS 140‑3 validated cryptographic modules across its entire portfolio of cellular routers and infrastructure devices, making it the first provider in the cellular connectivity space to achieve this certification without specialized SKUs.
The FIPS 140‑3 standard, issued by the National Institute of Standards and Technology, replaces FIPS 140‑2 and introduces stricter security controls and testing requirements. Compliance is mandatory for federal agencies and contractors and is highly recommended for sectors such as healthcare, finance, and public safety, where cyber‑threats and regulatory scrutiny are intensifying.
By enabling its devices to meet federal‑grade security requirements, Digi opens new sales opportunities in government, healthcare, finance, and public safety markets. The validation strengthens Digi’s positioning as a secure‑by‑design IoT platform provider and gives it a competitive advantage over rivals that have yet to obtain the certification.
Digi’s Q1 2026 earnings reflected the company’s continued momentum: revenue rose 17.9% year‑over‑year to $122.46 million, and earnings per share of $0.56 beat analyst expectations of $0.55. The company’s price‑to‑earnings ratio of 49.17 and a GF Score™ of 88/100 underscore investor confidence, while insider selling of $0.6 million over the past three months suggests a cautious stance among insiders. The FIPS 140‑3 validation is a strategic milestone that complements Digi’s broader growth initiatives, including the recent acquisition of Jolt and a focus on increasing annual recurring revenue.
Landon Reese, Vice President of Product Management, said, “Achieving FIPS 140‑3 validation — and doing so as the first provider in the cellular connectivity space — demonstrates our continued leadership in secure IoT infrastructure. Our customers depend on us to protect critical data and communications, and this milestone ensures they remain ahead of evolving regulatory and threat landscapes.” President and CEO Ron Konezny added, “We’re off to a great start to our fiscal year 2026. Digi’s customer focus is shining through our IoT solutions that drive meaningful ROI. With the addition of Jolt, we delivered double‑digit growth in ARR, revenue, adjusted EBITDA, and adjusted EPS in our fiscal first quarter.”
The announcement has been well received by investors, reflecting confidence in Digi’s security leadership and its ability to capture high‑value, regulated markets. The company’s strategic focus on secure connectivity, combined with its recent financial performance, positions it for continued growth in the IoT and connectivity space.
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