This page shows Digital Ally Inc (DGLY) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Thin gross profit leaves Digital Ally trying to fund a near-break-even revenue base with persistent overhead burn.
From FY2024 to FY2025, revenue barely moved, but net loss narrowed to-$6.7M from-$19.8M . Because gross margin fell to9.8% and operating margin remained-79.1% , the better bottom line came mostly from lower non-operating costs rather than healthier core sales economics.
Liquidity pressure remains the immediate operating constraint: cash was only
Cash burn quality is also revealing: operating cash flow was
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Digital Ally Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Digital Ally Inc has an operating margin of -79.1%, meaning the company retains $-79 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -84.2% the prior year.
Digital Ally Inc's revenue grew a modest 1.7% year-over-year to $13.8M. This slow but positive growth earns a score of 0/100.
Digital Ally Inc carries a low D/E ratio of 0.06, meaning only $0.06 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
Digital Ally Inc's current ratio of 0.86 is below the typical benchmark, resulting in a score of 12/100. This tight liquidity could limit financial flexibility if cash inflows slow.
While Digital Ally Inc generated -$8.4M in operating cash flow, capex of $258K consumed most of it, leaving -$8.7M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Digital Ally Inc generates a -281.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100.
Digital Ally Inc passes 3 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Digital Ally Inc generates $1.26 in operating cash flow (-$8.4M OCF vs -$6.7M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Digital Ally Inc earns $-9.9 in operating income for every $1 of interest expense (-$10.9M vs $1.1M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Digital Ally Inc generated $13.8M in revenue in fiscal year 2026. This represents an increase of 1.7% from the prior year.
Digital Ally Inc's EBITDA was -$9.3M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1.4% from the prior year.
Digital Ally Inc reported -$6.7M in net income in fiscal year 2026. This represents an increase of 66.4% from the prior year.
Digital Ally Inc earned $-17.23 per diluted share (EPS) in fiscal year 2026. This represents an increase of 99.9% from the prior year.
Cash & Balance Sheet
Digital Ally Inc generated -$8.7M in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 68.5% from the prior year.
Digital Ally Inc held $757K in cash against $138K in long-term debt as of fiscal year 2026.
Margins & Returns
Digital Ally Inc's gross margin was 9.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 13.3 percentage points from the prior year.
Digital Ally Inc's operating margin was -79.1% in fiscal year 2026, reflecting core business profitability. This is up 5.1 percentage points from the prior year.
Digital Ally Inc's net profit margin was -48.5% in fiscal year 2026, showing the share of revenue converted to profit. This is up 98.3 percentage points from the prior year.
Digital Ally Inc's ROE was -281.5% in fiscal year 2026, measuring profit generated per dollar of shareholder equity.
Capital Allocation
Digital Ally Inc invested $551K in research and development in fiscal year 2026. This represents a decrease of 58.8% from the prior year.
Digital Ally Inc invested $258K in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 796.2% from the prior year.
DGLY Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $4.3M+837.4% | $460K-89.9% | $4.5M-19.4% | $5.6M+80.2% | $3.1M | N/A | $4.1M-27.9% | $5.6M |
| Cost of Revenue | $3.7M+277.1% | $984K-68.9% | $3.2M-49.5% | $6.3M+214.7% | $2.0M | N/A | $2.3M-57.0% | $5.4M |
| Gross Profit | $604K+215.3% | -$524K-138.2% | $1.4M+316.8% | -$633K-155.8% | $1.1M | N/A | $1.7M+617.8% | $242K |
| R&D Expenses | $143K-1.6% | $145K+5.6% | $138K-25.1% | $184K+117.7% | $84K | N/A | $211K-61.4% | $546K |
| SG&A Expenses | $1.9M-54.3% | $4.2M+66.8% | $2.5M-28.0% | $3.5M+63.6% | $2.1M | N/A | $9.1M+119.5% | $4.2M |
| Operating Income | -$1.3M+72.3% | -$4.7M-317.5% | -$1.1M+72.6% | -$4.1M-317.0% | -$982K | N/A | -$7.4M-88.6% | -$3.9M |
| Interest Expense | $67K-52.5% | $142K+56.7% | $91K+17.4% | $77K-90.2% | $792K | N/A | $772K-28.9% | $1.1M |
| Income Tax | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Income | -$5.9M-7.3% | -$5.5M-469.5% | -$963K+78.5% | -$4.5M-205.2% | $4.3M | N/A | -$5.5M-9.2% | -$5.0M |
| EPS (Diluted) | $-13.39 | N/A | $-0.59 | $-3.21-100.2% | $2109.58 | N/A | $-1817.02+47.8% | $-3479.71 |
DGLY Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $19.1M-1.0% | $19.3M-22.9% | $25.1M-3.4% | $26.0M-14.2% | $30.3M+9.1% | $27.7M-14.0% | $32.3M-25.5% | $43.3M |
| Current Assets | $9.4M+3.9% | $9.0M-6.6% | $9.7M+0.1% | $9.7M-31.1% | $14.0M+35.6% | $10.4M-27.7% | $14.3M+0.5% | $14.2M |
| Cash & Equivalents | $1.2M+61.7% | $757K-4.5% | $793K+27.4% | $623K-83.4% | $3.8M+1615.6% | $219K-47.2% | $415K-19.7% | $517K |
| Inventory | $2.1M-7.8% | $2.3M-11.1% | $2.6M+6.3% | $2.5M-0.9% | $2.5M-3.7% | $2.6M+11.2% | $2.3M+4.8% | $2.2M |
| Accounts Receivable | $326K-32.0% | $480K-61.8% | $1.3M+30.4% | $962K-22.9% | $1.2M+65.9% | $752K-52.8% | $1.6M+18.6% | $1.3M |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $14.8M-12.5% | $17.0M-3.4% | $17.6M-1.4% | $17.8M-4.7% | $18.7M-49.2% | $36.8M+5.9% | $34.7M-13.8% | $40.3M |
| Current Liabilities | $9.5M-10.2% | $10.5M+7.6% | $9.8M+2.6% | $9.6M-10.4% | $10.7M-64.2% | $29.7M+8.1% | $27.5M-0.6% | $27.7M |
| Long-Term Debt | $137K-0.7% | $138K-0.6% | $138K-0.6% | $139K-0.6% | $140K-0.6% | $141K-0.6% | $142K-97.1% | $4.9M |
| Total Equity | $4.3M+81.2% | $2.4M-68.5% | $7.5M-7.8% | $8.2M-29.5% | $11.6M+228.4% | -$9.0M-268.1% | -$2.4M-180.3% | $3.1M |
| Retained Earnings | -$147.6M-2.4% | -$144.2M-3.9% | -$138.8M-0.7% | -$137.8M-3.4% | -$133.2M+3.1% | -$137.5M-5.7% | -$130.2M-2.7% | -$126.7M |
DGLY Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.2M-300.0% | $585K+266.2% | -$352K+87.8% | -$2.9M+49.8% | -$5.8M-459.4% | -$1.0M-51.9% | -$677K+72.8% | -$2.5M |
| Capital Expenditures | $160K+3345.1% | -$5K-111.5% | $43K-75.9% | $178K+318.3% | $42K+753.9% | $5K+568.8% | -$1K-116.5% | $6K |
| Free Cash Flow | -$1.3M-329.2% | $581K+246.9% | -$395K+87.1% | -$3.1M+47.1% | -$5.8M-460.8% | -$1.0M-52.4% | -$678K+72.8% | -$2.5M |
| Investing Cash Flow | N/A | N/A | -$36K+84.1% | -$228K-166.4% | -$85K-1617.9% | -$5K-101.4% | $356K+386.4% | -$124K |
| Financing Cash Flow | N/A | N/A | $559K+2547.1% | -$23K-100.2% | $9.1M+752.7% | $1.1M+781.8% | $122K-94.5% | $2.2M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
DGLY Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 14.0%+127.8pp | -113.8%-144.0pp | 30.2%+41.5pp | -11.2%-47.5pp | 36.3% | N/A | 42.9%+38.6pp | 4.3% |
| Operating Margin | -30.1%+987.6pp | -1017.6%-992.9pp | -24.7%+48.0pp | -72.7%-41.3pp | -31.4% | N/A | -182.2%-112.5pp | -69.7% |
| Net Margin | -136.4%+1055.6pp | -1192.0%-1170.8pp | -21.2%+58.5pp | -79.7%-216.3pp | 136.6% | N/A | -135.0%-45.8pp | -89.2% |
| Return on Equity | -137.0%+94.4pp | -231.5%-218.7pp | -12.8%+42.3pp | -55.1%-92.0pp | 36.9% | N/A | N/A | -164.3% |
| Return on Assets | -30.8%-2.4pp | -28.4%-24.5pp | -3.8%+13.5pp | -17.3%-31.4pp | 14.1% | N/A | -17.0%-5.4pp | -11.6% |
| Current Ratio | 0.99+0.1 | 0.86-0.1 | 0.99-0.0 | 1.01-0.3 | 1.32+1.0 | 0.35-0.2 | 0.520.0 | 0.51 |
| Debt-to-Equity | 0.03-0.0 | 0.06+0.0 | 0.020.0 | 0.020.0 | 0.01+0.0 | -0.02+0.0 | -0.06-1.7 | 1.61 |
| FCF Margin | -30.9%-157.0pp | 126.1%+134.8pp | -8.7%+45.7pp | -54.5%+131.1pp | -185.5% | N/A | -16.7%+27.7pp | -44.5% |
Note: The current ratio is below 1.0 (0.86), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Frequently Asked Questions
What is Digital Ally Inc's annual revenue?
Digital Ally Inc (DGLY) reported $13.8M in total revenue for fiscal year 2026. This represents a 1.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Digital Ally Inc's revenue growing?
Digital Ally Inc (DGLY) revenue grew by 1.7% year-over-year, from $13.5M to $13.8M in fiscal year 2026.
Is Digital Ally Inc profitable?
No, Digital Ally Inc (DGLY) reported a net income of -$6.7M in fiscal year 2026, with a net profit margin of -48.5%.
What is Digital Ally Inc's EBITDA?
Digital Ally Inc (DGLY) had EBITDA of -$9.3M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Digital Ally Inc have?
As of fiscal year 2026, Digital Ally Inc (DGLY) had $757K in cash and equivalents against $138K in long-term debt.
What is Digital Ally Inc's gross margin?
Digital Ally Inc (DGLY) had a gross margin of 9.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Digital Ally Inc's operating margin?
Digital Ally Inc (DGLY) had an operating margin of -79.1% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Digital Ally Inc's net profit margin?
Digital Ally Inc (DGLY) had a net profit margin of -48.5% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Digital Ally Inc's return on equity (ROE)?
Digital Ally Inc (DGLY) has a return on equity of -281.5% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Digital Ally Inc's free cash flow?
Digital Ally Inc (DGLY) generated -$8.7M in free cash flow during fiscal year 2026. This represents a -68.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Digital Ally Inc's operating cash flow?
Digital Ally Inc (DGLY) generated -$8.4M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Digital Ally Inc's total assets?
Digital Ally Inc (DGLY) had $19.3M in total assets as of fiscal year 2026, including both current and long-term assets.
What are Digital Ally Inc's capital expenditures?
Digital Ally Inc (DGLY) invested $258K in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Digital Ally Inc spend on research and development?
Digital Ally Inc (DGLY) invested $551K in research and development during fiscal year 2026.
What is Digital Ally Inc's current ratio?
Digital Ally Inc (DGLY) had a current ratio of 0.86 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.
What is Digital Ally Inc's debt-to-equity ratio?
Digital Ally Inc (DGLY) had a debt-to-equity ratio of 0.06 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Digital Ally Inc's return on assets (ROA)?
Digital Ally Inc (DGLY) had a return on assets of -34.5% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Digital Ally Inc's cash runway?
Based on fiscal year 2026 data, Digital Ally Inc (DGLY) had $757K in cash against an annual operating cash burn of $8.4M. This gives an estimated cash runway of approximately 1 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Digital Ally Inc's Piotroski F-Score?
Digital Ally Inc (DGLY) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Digital Ally Inc's earnings high quality?
Digital Ally Inc (DGLY) has an earnings quality ratio of 1.26x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Digital Ally Inc cover its interest payments?
Digital Ally Inc (DGLY) has an interest coverage ratio of -9.9x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Digital Ally Inc?
Digital Ally Inc (DGLY) scores 19 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.