Digital Ally (DGLY, Financial) has made significant strides in minimizing its backlog and clinching high-value contracts. The company has successfully reduced its backlog from $2.2 million at the end of the first quarter of 2025 to a current level of $1.7 million. This achievement underscores Digital Ally's dedication to enhancing operational efficiency and addressing the evolving requirements of its clientele.
Moreover, Digital Ally has recently secured at least seven significant contracts, which are anticipated to bring in revenues exceeding $800,000. These agreements not only highlight the company's leadership in its industry but also emphasize the increasing demand for its advanced technology across various sectors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Digital Ally Inc (DGLY, Financial) is $11.00 with a high estimate of $11.00 and a low estimate of $11.00. The average target implies an upside of 345.34% from the current price of $2.47. More detailed estimate data can be found on the Digital Ally Inc (DGLY) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Digital Ally Inc's (DGLY, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Digital Ally Inc (DGLY, Financial) in one year is $1695.51, suggesting a upside of 68544.13% from the current price of $2.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Digital Ally Inc (DGLY) Summary page.
DGLY Key Business Developments
Release Date: May 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Digital Ally Inc (DGLY, Financial) reported a significant improvement in gross margin percentage, increasing from 28% to 36% year-over-year.
- The company successfully reduced SG&A expenses by $2.6 million, a 72% improvement, contributing to a better operating loss position.
- Net income turned positive at $4.2 million in Q1 2025, compared to a $3.9 million loss in Q1 2024, marking an $8 million turnaround.
- The balance sheet showed a strong improvement with a positive working capital of $3.4 million, up from a $19.4 million deficit at the end of 2024.
- Digital Ally Inc (DGLY) successfully raised $14 million through a public offering, significantly enhancing liquidity and financial stability.
Negative Points
- Year-over-year revenues declined by 19%, primarily due to a significant drop in video product sales.
- The company had to implement two reverse stock splits to meet NASDAQ compliance, which was described as a painful but necessary action.
- Despite improvements, the company still faces challenges with a $2 million backlog due to supply chain issues.
- The entertainment segment's revenues were down, although profits increased due to shedding uneconomical sponsorships.
- Digital Ally Inc (DGLY) is still working to meet NASDAQ's $1 minimum bid price requirement, with compliance pending for 10 consecutive trading days.
