STOCK TITAN

Digital Ally Inc Financials

DGLY
Source SEC Filings (10-K/10-Q) Updated Mar 31, 2026 Currency USD FYE December

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).

Rhea AI DGLY FY2025

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 to 9.8% 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 $757K and the current ratio sat at 0.9x. With long-term debt just $138K, the strain looks more like a working-capital squeeze than a lender-driven leverage problem, and the asset base has been shrinking as that buffer erodes.

Cash burn quality is also revealing: operating cash flow was -$8.4M and free cash flow was -$8.7M. Since capital spending was only $258K, this is mostly an operating deficit, not a business consuming cash to build new capacity, which means minimal reinvestment is already baked into the burn.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 19 / 100
Financial Profile 19/100

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.

Profitability
0

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.

Growth
0

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.

Leverage
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.

Liquidity
12

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.

Cash Flow
0

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.

Returns
0

Digital Ally Inc generates a -281.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100.

Piotroski F-Score Weak
3/9

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.

Earnings Quality Low Quality
1.26x

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.

Interest Coverage At Risk
-9.9x

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

Export CSV

Earnings & Revenue

Revenue
$13.8M
YoY+1.7%
5Y CAGR+5.7%
10Y CAGR-2.3%

Digital Ally Inc generated $13.8M in revenue in fiscal year 2026. This represents an increase of 1.7% from the prior year.

EBITDA
-$9.3M
YoY+1.4%

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.

Net Income
-$6.7M
YoY+66.4%

Digital Ally Inc reported -$6.7M in net income in fiscal year 2026. This represents an increase of 66.4% from the prior year.

EPS (Diluted)
$-17.23
YoY+99.9%

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

Free Cash Flow
-$8.7M
YoY-68.5%

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.

Cash & Debt
$757K
YoY+245.3%
5Y CAGR+16.1%
10Y CAGR-13.0%

Digital Ally Inc held $757K in cash against $138K in long-term debt as of fiscal year 2026.

Dividends Per Share
N/A
Shares Outstanding
N/A

Margins & Returns

Gross Margin
9.8%
YoY-13.3pp
5Y CAGR-21.1pp
10Y CAGR-47.1pp

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.

Operating Margin
-79.1%
YoY+5.1pp
5Y CAGR-21.3pp
10Y CAGR-62.6pp

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.

Net Margin
-48.5%
YoY+98.3pp
5Y CAGR+47.3pp
10Y CAGR+4.0pp

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.

Return on Equity
-281.5%
10Y CAGR-135.2pp

Digital Ally Inc's ROE was -281.5% in fiscal year 2026, measuring profit generated per dollar of shareholder equity.

Capital Allocation

R&D Spending
$551K
YoY-58.8%
5Y CAGR-22.8%
10Y CAGR-15.3%

Digital Ally Inc invested $551K in research and development in fiscal year 2026. This represents a decrease of 58.8% from the prior year.

Share Buybacks
N/A
Capital Expenditures
$258K
YoY+796.2%
5Y CAGR+4.8%
10Y CAGR-5.1%

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

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.

Digital Ally Inc (DGLY) revenue grew by 1.7% year-over-year, from $13.5M to $13.8M in fiscal year 2026.

No, Digital Ally Inc (DGLY) reported a net income of -$6.7M in fiscal year 2026, with a net profit margin of -48.5%.

Digital Ally Inc (DGLY) reported diluted earnings per share of $-17.23 for fiscal year 2026. This represents a 99.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Digital Ally Inc (DGLY) had EBITDA of -$9.3M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2026, Digital Ally Inc (DGLY) had $757K in cash and equivalents against $138K in long-term debt.

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.

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.

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.

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.

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.

Digital Ally Inc (DGLY) generated -$8.4M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

Digital Ally Inc (DGLY) had $19.3M in total assets as of fiscal year 2026, including both current and long-term assets.

Digital Ally Inc (DGLY) invested $258K in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

Digital Ally Inc (DGLY) invested $551K in research and development during fiscal year 2026.

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.

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.

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.

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.

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.

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.

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.

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.

Back to top