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Yeah, you need one of these Toslink cables for it: https://www.amazon.co.uk/gp/product/B00T8HWV62/ref=ppx_yo_dt_b_asin_title_o05_s02?ie=UTF8&psc=1 to connect it to a DAC with standard Toslink.
It's inside the audio out jack, that socket is both a digital and analog out depending on what you plug in.
Since discovering that Chromecast Audio supports toslink optical out and I could use my own DAC... I am now sold on this being the greatest of all the audio streaming devices.