Digerati Technologies (DTGI) AI Stock Analysis

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Digerati Technologies

(Other OTC:DTGI)

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Rating:47Neutral

Price Target:$0.01▲(36.05% Upside)

Action:reiterated

Date:06/19/26

The score is held down primarily by weak financial quality (sharp TTM revenue decline, negative equity, and return to cash burn despite positive net income). Valuation is a partial offset due to the very low P/E, while technicals provide limited signal because key indicators are missing.

Positive Factors

Recurring subscription revenueA subscription-based telecom/UCaaS model supports durable, predictable revenue through monthly fees and service contracts. This structure enables customer lifetime value, steady billing cycles and cross-sell opportunities, bolstering long-term revenue visibility if churn is controlled.

Negative Factors

Severe revenue declineAn ~82% TTM revenue collapse undermines the sustainability of current profitability and economies of scale. Such a steep decline suggests material customer loss or contract attrition, making future margin and cash forecasts highly sensitive to customer recovery or new business wins.

Digerati Technologies (DTGI) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.08M
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): 0.7
Beta (1Y): 1.22
Revenue Growth: -94.92%
EPS Growth: ―
Country: US
Employees: 2
Sector: Communication Services
Sector Strength: 60
Industry: Telecommunications Services

Digerati Technologies Business Overview & Revenue Model

Company Description

Digerati Technologies, Inc., through its subsidiaries, provides a portfolio of Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Inte...

How the Company Makes Money

DTGI makes money primarily by selling recurring subscription-based communications services to business customers through its telecom and cloud communications subsidiaries. Key revenue streams generally include: (1) monthly recurring service fees for...

Digerati Technologies Financial Statement Overview

Summary

Despite a swing to positive TTM net income and generally strong gross margin, fundamentals remain high risk: TTM revenue fell ~82%, EBIT is still negative, equity is negative across periods, and TTM operating/free cash flow are negative—signaling weak operating durability and limited financial flexibility.

Income Statement

42Neutral

Balance Sheet

24Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Jul 2025	Jul 2024	Oct 2023	Oct 2022	Jul 2021
Income Statement
Total Revenue	1.52M	22.76M	29.96M	31.62M	24.15M	12.42M
Gross Profit	2.25M	13.91M	15.12M	20.34M	14.81M	7.28M
EBITDA	4.80M	9.60M	567.00K	6.60M	597.00K	-10.03M
Net Income	834.00K	-811.00K	-12.64M	-8.29M	-8.01M	-16.68M
Balance Sheet
Total Assets	775.00K	91.00K	36.56M	38.37M	41.69M	16.52M
Cash, Cash Equivalents and Short-Term Investments	18.00K	37.00K	489.00K	924.00K	1.51M	1.49M
Total Debt	1.10M	7.59M	61.01M	47.78M	42.13M	12.36M
Total Liabilities	2.09M	11.76M	81.34M	69.28M	67.50M	33.37M
Stockholders Equity	-1.32M	-11.67M	-39.09M	-27.61M	-23.76M	-16.14M
Cash Flow
Free Cash Flow	-1.54M	213.00K	-1.68M	-3.66M	-2.23M	-1.12M
Operating Cash Flow	-1.58M	510.00K	-1.68M	-3.22M	-1.96M	-708.00K
Investing Cash Flow	-51.00K	-297.00K	0	-436.00K	-12.88M	-10.80M
Financing Cash Flow	845.00K	-665.00K	1.24M	3.07M	14.87M	12.31M

Digerati Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

DTGI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXDO	70Outperform	$167.88M	40.79	5.38%	―	33.54%	-17.64%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
UCL	50Neutral	$7.19M	-0.38	-0.93%	―	-12.14%	-111.36%
DTGI	47Neutral	$5.50M	0.73	-10.75%	―	-94.92%	―
IQST	44Neutral	$8.63M	-0.35	-81.23%	―	39.28%	10.85%

* Communication Services Sector Average

Performance Comparison

DTGI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DTGI	Digerati Technologies	0.01	0.00	0.00%
CXDO	Crexendo Inc.	5.05	-1.76	-25.84%
IQST	Iqstel, Inc.	0.79	-4.27	-84.39%
UCL	uCloudlink Group, Inc.	0.23	-2.00	-89.69%
PCLA	PicoCELA, Inc. ADR	6.37	-2.90	-31.26%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Jun 19, 2026

Digerati Technologies AI Stock Analysis