olivLaw · US equity research
Digi International Inc. DGII
Computer Communications Equipment · SIC 3576 · Vertical: Computer Communications Equipment (SIC 3576)
Digi International is a global provider of IoT connectivity products, services and solutions for industrial, infrastructure and enterprise customers. Its shift toward recurring subscription revenue has grown quickly, with annualized recurring revenue reaching 191 million USD at the end of the third quarter of fiscal 2026.
At the close of 04 Nov 2026, Digi International Inc. (DGII) stock was 72.58 USD (+0.76% on the day), with market capitalisation 2.8 bn USD, P/E 57.5 on diluted EPS of 1.26 USD over the last 12 months, beta 1.43, 52-week range 35.40–85.24 USD. Latest reported quarter (Q3 2026): revenue of 138.7 m USD (+29.0% YoY), net income of 15.7 m USD (+53.7% YoY), diluted EPS 0.40 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 45.7
- neutral
- Bollinger (20, 2)
- 69.52 – 78.92
- in the lower half of the band · %B 0.33 · band width 12.7%
- SMA 50 / 200
- 73.55 / 63.48
- mixed trend
- MACD (12, 26, 9)
- -0.13 / 0.22
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −2.7% | −2.0% | −0.7 pp | — |
| 3 months | −0.2% | −2.2% | +1.9 pp | — |
| 6 months | +23.3% | +4.3% | +19.1 pp | — |
| Year to date | +67.7% | +10.6% | +57.1 pp | — |
| 1 year | +104.0% | +10.5% | +93.6 pp | −9.0% |
| 3 years | +188.2% | +73.7% | +114.6 pp | +48.3% |
| 5 years | +214.1% | +61.7% | +152.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 105.1 m | 103.9 m | 104.5 m | 107.5 m | 114.3 m | 122.5 m | 130.7 m | 138.7 m |
| Cost of revenue | 40.8 m | 39.5 m | 39.6 m | 39.2 m | 41.3 m | 46.1 m | 47.1 m | 48.7 m |
| Gross profit | 64.2 m | 64.4 m | 64.9 m | 68.3 m | 73.1 m | 76.4 m | 83.7 m | 89.9 m |
| Operating income | 14.9 m | 13.4 m | 13.7 m | 14.9 m | 14.3 m | 16.3 m | 17.1 m | 22.9 m |
| Interest expense | 2.8 m | 2.3 m | 1.3 m | 932.0 k | 1.8 m | 2.3 m | 2.2 m | 1.6 m |
| Pre-tax income | 12.1 m | 11.1 m | 12.3 m | 14.0 m | 12.5 m | 14.0 m | 14.8 m | 21.3 m |
| Income tax | 189.0 k | 1.0 m | 1.9 m | 3.7 m | 2.5 m | 2.3 m | 3.5 m | 5.5 m |
| Net income | 11.9 m | 10.1 m | 10.5 m | 10.2 m | 10.0 m | 11.7 m | 11.3 m | 15.7 m |
| Diluted EPS | 0.32 ≈ | 0.27 | 0.28 | 0.27 | 0.26 ≈ | 0.31 | 0.29 | 0.40 |
| Operating cash flow | 26.4 m | 29.7 m | 26.3 m ≈ | 24.0 m ≈ | 28.0 m | 35.6 m | 41.5 m ≈ | 33.3 m ≈ |
| Capex | 944.0 k | 577.0 k | 558.0 k ≈ | 1.0 m ≈ | 482.0 k | 457.0 k | 638.0 k ≈ | 861.0 k ≈ |
| Share repurchases | 103.0 k | 4.5 m | 2.0 m ≈ | 169.0 k ≈ | 133.0 k | 6.6 m | 252.0 k ≈ | 4.5 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 59 percentile of its own 39-quarter history (min 24.6, median 49.6, max 269.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 226.9 m | 254.2 m | 279.3 m | 308.6 m | 388.2 m | 444.8 m | 424.0 m | 430.2 m |
| Revenue YoY | +25.1% | +12.0% | +9.9% | +10.5% | +25.8% | +14.6% | −4.7% | +1.5% |
| Net income | 1.6 m | 10.0 m | 8.4 m | 10.4 m | 19.4 m | 24.8 m | 22.5 m | 40.8 m |
| Net income YoY | −82.7% | +510.5% | −15.5% | +23.2% | +87.0% | +27.8% | −9.1% | +81.3% |
| Diluted EPS | 0.06 | 0.35 | 0.28 | 0.31 | 0.54 | 0.67 | 0.61 | 1.08 |
| Diluted EPS YoY | −82.9% | +483.3% | −20.0% | +10.7% | +74.2% | +24.1% | −9.0% | +77.0% |
| net % | 0.7% | 3.9% | 3.0% | 3.4% | 5.0% | 5.6% | 5.3% | 9.5% |
| Free cash flow | -4.6 m | 19.6 m | 33.6 m | 55.5 m | 35.8 m | 32.4 m | 80.9 m | 105.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 21.9 m USD
- Financial debt
- 159.2 m USD
- Net debt
- 137.3 m USD
- Equity
- 636.1 m USD
- Total assets
- 922.6 m USD
- Debt / equity
- 0.25x
- Current ratio
- 1.21x
- ROE
- 6.7%
- ROA
- 4.7%
- FCF margin
- 24.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 279.3 m | 308.6 m | 388.2 m | 444.8 m | 424.0 m | 430.2 m | SEC (XBRL)· 21 Nov 2025verified |
| Cost of revenue | 135.3 m | 142.0 m | 171.9 m | 192.6 m | 174.1 m | 159.5 m | SEC (XBRL)· 21 Nov 2025verified |
| Gross profit | 144.0 m | 166.7 m | 216.3 m | 252.2 m | 249.9 m | 270.7 m | SEC (XBRL)· 21 Nov 2025verified |
| Operating income | 11.3 m | 10.5 m | 38.2 m | 50.1 m | 48.1 m | 56.3 m | SEC (XBRL)· 21 Nov 2025verified |
| Depreciation & amortisation | 19.3 m | 20.9 m | 33.8 m | 32.0 m | 33.1 m | 34.0 m | SEC (XBRL)· 21 Nov 2025verified |
| EBITDA | 30.6 m ≈ | 31.4 m ≈ | 72.1 m ≈ | 82.1 m ≈ | 81.2 m ≈ | 90.3 m ≈ | SEC (XBRL)· 21 Nov 2025derived |
| Interest expense | 3.6 m | 1.4 m | 19.7 m | 25.2 m | 15.4 m | 6.3 m | SEC (XBRL)· 21 Nov 2025verified |
| Pre-tax income | 7.5 m | 9.0 m | 18.6 m | 24.9 m | 22.9 m | 49.9 m | SEC (XBRL)· 21 Nov 2025verified |
| Income tax | -948.0 k | -1.4 m | -755.0 k | 148.0 k | 353.0 k | 9.1 m | SEC (XBRL)· 21 Nov 2025verified |
| Net income | 8.4 m | 10.4 m | 19.4 m | 24.8 m | 22.5 m | 40.8 m | SEC (XBRL)· 21 Nov 2025verified |
| Diluted EPS | 0.28 | 0.31 | 0.54 | 0.67 | 0.61 | 1.08 | SEC (XBRL)· 21 Nov 2025verified |
| Weighted average diluted shares | 29.5 m | 33.4 m | 36.0 m | 36.9 m | 37.0 m | 37.7 m | SEC (XBRL)· 21 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 54.1 m | 152.4 m | 34.9 m | 31.7 m | 27.5 m | 21.9 m | SEC (XBRL)· 21 Nov 2025verified |
| Receivables | 59.2 m | 43.7 m | 50.5 m | 56.0 m | 69.6 m | 63.5 m | SEC (XBRL)· 21 Nov 2025verified |
| Inventories | 51.6 m | 43.9 m | 73.2 m | 74.4 m | 53.4 m | 38.9 m | SEC (XBRL)· 21 Nov 2025verified |
| Current assets | 170.1 m | 246.7 m | 166.2 m | 166.2 m | 154.4 m | 130.7 m | SEC (XBRL)· 21 Nov 2025verified |
| Property, plant & equipment, net | 11.5 m | 12.1 m | 27.6 m | 29.1 m | 34.9 m | 34.0 m | SEC (XBRL)· 21 Nov 2025verified |
| Goodwill | 210.1 m | 225.5 m | 340.5 m | 341.6 m | 342.8 m | 392.9 m | SEC (XBRL)· 21 Nov 2025verified |
| Intangibles (excl. goodwill) | 121.2 m | 118.0 m | 302.1 m | 277.1 m | 252.9 m | 350.7 m | SEC (XBRL)· 21 Nov 2025verified |
| Total assets | 528.7 m | 619.5 m | 853.9 m | 835.5 m | 815.1 m | 922.6 m | SEC (XBRL)· 21 Nov 2025verified |
| Accounts payable | 28.1 m | 22.6 m | 32.4 m | 17.1 m | 23.8 m | 35.9 m | SEC (XBRL)· 21 Nov 2025verified |
| Short-term debt | 2.0 m | 0 | 15.5 m | 15.5 m | 0 | 0 | SEC (XBRL)· 21 Nov 2025verified |
| Long-term debt | 59.0 m | 45.8 m | 222.4 m | 188.1 m | 123.2 m | 159.2 m | SEC (XBRL)· 21 Nov 2025verified |
| Current liabilities | 61.2 m | 58.9 m | 96.5 m | 86.0 m | 89.3 m | 107.8 m | SEC (XBRL)· 21 Nov 2025verified |
| Total liabilities | 157.2 m | 147.0 m | 352.4 m | 295.0 m | 234.0 m | 286.6 m | SEC (XBRL)· 21 Nov 2025verified |
| Equity | 371.5 m † | 472.5 m † | 501.5 m † | 540.5 m † | 581.0 m † | 636.1 m † | SEC (XBRL)· 21 Nov 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 34.5 m | 57.7 m | 37.7 m | 36.8 m | 83.1 m | 108.0 m | SEC (XBRL)· 21 Nov 2025verified |
| Capex | 899.0 k | 2.3 m | 2.0 m | 4.3 m | 2.2 m | 2.6 m | SEC (XBRL)· 21 Nov 2025verified |
| Free cash flow | 33.6 m ≈ | 55.5 m ≈ | 35.8 m ≈ | 32.4 m ≈ | 80.9 m ≈ | 105.3 m ≈ | SEC (XBRL)· 21 Nov 2025derived |
| Investing cash flow | -137.0 m | -21.4 m | -349.5 m | -4.3 m | 3.0 k | -148.3 m | SEC (XBRL)· 21 Nov 2025verified |
| Financing cash flow | 63.6 m | 62.2 m | 192.8 m | -34.5 m | -89.0 m | 34.6 m | SEC (XBRL)· 21 Nov 2025verified |
| Share repurchases | 1.8 m | 2.1 m | 6.7 m | 4.3 m | 3.6 m | 6.9 m | SEC (XBRL)· 21 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 50 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.8 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet47
- Growth16
- Quality76
- Returns40
- Valuation59
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.56 – 73.96 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)46.99 – 73.20 (Mid 57.15)WACC 9.1% · starting FCFF 142.1 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 14.0%
- Peers: EV/Sales3.56 – 53.59 (Mid 20.33)7 companies used · median multiple 1.7x · quartiles 0.4x – 4.2xATEN, BOSC, CSCO, EXTR, FOXX, HUBC, LTRX
- Peers: EV/EBITDA42.42 – 73.96 (Mid 71.32)3 companies used · median multiple 26.7x · quartiles 16.2x – 27.6xATEN, BOSC, CSCO
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 50/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 63.8% | 60 (on a fixed band) | 11% |
| EBIT margin · Quality | 13.9% | 73 (vs peers) | 9% |
| FCF margin · Quality | 26.9% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 3.5% | 14 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 1.5% | 20 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 0.8x | 74 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.1x | 19 (on a fixed band) | 6% |
| EV/Sales · Valuation | 5.6x | 29 (vs peers) | 17% |
| FCF yield · Valuation | 4.9% | 99 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.4% | 40 (on a fixed band) | 4% |
Score groups
- Balance sheet47/100 · 2/2 factors with a value
- Growth16/100 · 2/2 factors with a value
- Quality76/100 · 3/3 factors with a value
- Returns40/100 · 1/1 factors with a value
- Valuation59/100 · 2/2 factors with a value
Memo
DIGI INTERNATIONAL INC. (DGII). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 430.2 m USD in 2025; YoY growth 1.5%; net margin 9.6%; ROE 7.5%; net debt/EBITDA 0.8x.
The estimated value range is 42.42–73.20 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 57.15 USD, the price of 72.58 USD leaves a potential of -21.3% (value / price − 1) and a margin of safety of -27.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 50/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 13.9%
- FCF margin: 26.9%
- Net debt / EBITDA: 0.8x
- FCF yield: 4.9%
What contradicts it
- Revenue CAGR 3Y: 3.5%
- Revenue growth (YoY): 1.5%
- Current ratio: 1.1x
- EV/Sales: 5.6x
Versus the vertical median
Computer Communications Equipment (SIC 3576) · same industry (4-digit SIC) · compared with 15 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CSCOCisco Systems, Inc. | 406.0 bn | 30.9 | 27.3% | 21.0% | +11.8% | +34% / +113% |
| ANETArista Networks, Inc. | 214.3 bn | 53.6 | 31.5% | 38.4% | +28.6% | +30% / +209% |
| FFIVF5, Inc. | 18.8 bn | 26.4 | 19.8% | 22.0% | +9.7% | +38% / +93% |
| EXTRExtreme Networks, Inc. | 3.0 bn | 58.0 | 67.1% | 4.0% | +12.6% | +31% / +42% |
| DGIIDigi International Inc. | 2.8 bn | 57.5 | 7.5% | 9.6% | +1.5% | +104% / +188% |
| ATENA10 Networks, Inc. | 1.7 bn | 40.0 | 19.4% | 13.9% | +11.0% | +38% / +91% |
| NTGRNETGEAR, Inc. | 606.6 m | — | -5.3% | -3.7% | +3.8% | −16% / +64% |
| ALLTAllot Ltd. | 421.3 m | 108.3 | 4.5% | 3.6% | +10.6% | −10% / +541% |
| LTRXLantronix, Inc. | 263.9 m | — | -4.3% | -3.5% | −1.6% | +10% / 0% |
| SILCSilicom Ltd. | 181.2 m | — | -9.4% | -18.5% | +6.6% | +112% / +95% |
| BOSCBos Better Online Solutions Ltd | 29.8 m | 7.4 | 14.4% | 7.1% | +26.6% | −9% / +48% |
| CIITTianci International, Inc. | 16.5 m | — | -59.1% | -14.7% | +7.7% | −93% / −96% |
| FOXXFoxx Development Holdings Inc. | 13.3 m | — | — | -100.2% | −20.2% | −58% / −83% |
| INTZIntrusion Inc. | 11.9 m | — | -140.9% | -194.0% | +21.6% | −66% / −93% |
| WLDSWearable Devices Ltd. | 4.2 m | — | -72.3% | -1,253.0% | +23.9% | −92% / −100% |
| HUBCHUB Cyber Security Ltd. | 3.4 m | — | — | -134.5% | −30.7% | −100% / −100% |
1- and 3-year price returns: for DGII from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 43.21 Total return -40% · Per year -40% | 76.43 Total return 5% · Per year 5% | 115.17 Total return 59% · Per year 59% |
| 3 years | 41.08 Total return -43% · Per year -17% | 81.84 Total return 13% · Per year 4% | 135.54 Total return 87% · Per year 23% |
| 5 years | 39.06 Total return -46% · Per year -12% | 87.64 Total return 21% · Per year 4% | 159.51 Total return 120% · Per year 17% |
- Exit P/E± 20.46
- Net margin± 14.32
- Annual revenue growth± 11.87
- Annual dilution± 1.20
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Digi International is a global provider of IoT connectivity products, services and solutions for industrial, infrastructure and enterprise customers. Its shift toward recurring subscription revenue has grown quickly, with annualized recurring revenue reaching 191 million USD at the end of the third quarter of fiscal 2026 23.
SWOT
Strengths
- Broad IoT connectivity portfolio and a growing share of higher-margin recurring revenue.
- Rising gross margins and a balance sheet being strengthened through debt reduction.
- Acquisitions integrated in recent years have expanded its software and subscription base.
Weaknesses
- Reliance on contract manufacturers and limited-source suppliers for certain components.
- Customer concentration in some segments, including a few carriers and specific industries.
- Long sales cycles that make quarterly results harder to predict.
Opportunities
- Further growth in subscriptions and cloud services if attach rates keep rising.
- Demand linked to data centres and infrastructure for artificial intelligence.
- Scale acquisitions that could accelerate recurring growth if executed with discipline.
Threats
- New tariffs or trade tensions that could raise costs and disrupt supply chains.
- Competitors with greater resources and new technologies that could displace existing products.
- Falling prices for networking products and the loss of large orders.
Risks
- Supplier dependencehigh
Disruption at suppliers or contract manufacturers could delay deliveries and affect customer relationships.
- Acquisitions and integrationmedium
Integrating acquired businesses can be difficult and can divert management attention.
- Tariffs and international tradehigh
Changes in trade policy could raise costs for products made in Asia.
- Customer concentrationmedium
Losing a major customer or seeing its orders reduced could have a large effect on revenue.
- Reliance on distributorsmedium
Distributors may sell competing products, and some could stop selling the company's products.
Investment thesis
What would need to be true (bull case)
- If the shift to subscriptions continues, recurring revenue could support higher margins and more predictable growth.
- Demand from data centre and AI infrastructure could bring additional orders for the hardware segment.
- Debt reduction and cash generation could give the company room for strategic acquisitions.
What would break the thesis
- Tariffs and trade tensions could reduce margins if component costs rise faster than selling prices.
- Demand for hardware products can be volatile, and customers may cut inventory in uncertain periods.
- Competitors with larger resources could speed up innovation and win market share.
What to watch
- Fourth-quarter results and final fiscal 2026 guidanceQ4 2026
- ARR growth and adjusted EBITDA progress toward the 200 million USD target2027
- Effect of the Particle acquisition on the IoT Products & Services segmentNext 10-K
- Debt level and its reduction relative to cash generatedQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Digi International Inc. (Nasdaq: DGII) presents itself as a global provider of business and mission-critical IoT connectivity, headquartered in Hopkins, Minnesota 1. It operates two reportable segments: IoT Products & Services and IoT Solutions 1. Consolidated revenue in fiscal 2025 was 430 million USD 1.
The company has moved emphasis from one-time hardware sales toward subscriptions, tied to products such as remote device management platforms 1. The Jolt acquisition in the fourth quarter of fiscal 2025 and the Particle acquisition in January 2026 expanded its software and recurring services 123. It sells through distributors, systems integrators and cellular carriers 1.
Manufacturing is outsourced to contract manufacturers in Thailand, Mexico, Taiwan and Cambodia, while ASIC semiconductors are mainly produced by foundries in Taiwan 1. The company has also announced it will discontinue certain older products not core to its long-term growth goals 1.
Segments
IoT Products & Services
This segment covers cellular modules and routers, console servers, Digi XBee radio products and embedded systems, sold largely through distributors and integrators 1. In the third quarter of fiscal 2026 segment revenue was 100 million USD, up 25%, and segment ARR reached 60 million USD 3.
Market context
Management describes the industrial IoT market as in a multi-year expansion, as companies digitise operations and need secure connectivity and monitoring 12. Spending on data centres and artificial intelligence infrastructure is cited as an additional favourable factor 2.
Demand still depends on macroeconomic conditions and trade tariffs, which can change costs and supply chains 13. The company notes rising component costs, most notably memory 3.
Trends
- Shift to recurring revenuetailwind
As subscriptions and cloud services grow as a share of revenue, management expects operating margins could expand if this continues 2.
- Data centre demandtailwind
Investment in data centres and AI-related infrastructure could support demand for the company's products 2.
- Tariffs and trade tensionsheadwind
Tariffs and tensions between China and other countries could disrupt supply chains and raise costs, which could weigh on margins 12.
- Variable hardware demandmixed
The decline in one-time sales in fiscal 2025 was partly linked to customers reducing stockpiled inventory, showing hardware demand can be volatile 1.
Competitive position
The company states no competitor offers a comparable range of products and services, but several firms compete on individual product lines or solutions 1. Larger competitors may have more financial and technical resources, which could give them advantages in development and sales 1.
Competition runs on features, reputation, technical support and alliance relationships, and new entrants with disruptive technology could reshape the market 1. Distributors may also promote competing products, adding a further risk 1.
- Cellular module and router makers
Firms offering cellular products and industrial routers for IoT, a general area of competition named in the filing.
- Managed WAN solution providers
Competitors in managed wide-area network connectivity, relevant to the Ventus business.
- Condition-monitoring platforms
Providers of wireless condition monitoring that compete with SmartSense by Digi.
- Larger IoT technology groups
Large technology groups that can dedicate more resources to specific product lines.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- DIGI deschide oficial sezonul reducerilor de Black Friday: prețuri reduse la jumătate, timp de un anDigi24 · 04 Nov 2026 · RO
- Digi anunță ofertele de Black Friday: prețuri reduse la jumătate, timp de un an, pentru toate serviciile nou contractateProfit.ro · 04 Nov 2026 · RO
- Decizia luată de Tenerife, la o zi după ce Jesus de Miguel a murit - Digi SportSurge — Google News · 04 Nov 2026 · RO
- Un renumit medic din Spania a ”făcut lumină” în cazul morții lui Jesus de Miguel! Cauzele decesului - Digi SportSurge — Google News · 04 Nov 2026 · RO
- Barcelona - Aston Villa 3-0. Lamine Yamal și Raphinha i-au ”răpus” pe englezi - Digi SportSurge — Google News · 04 Nov 2026 · RO
- Ilie Dumitrescu a văzut ce a făcut Hansi Flick în Barcelona - Aston Villa și a reacționat: ”Domn`e, dar pe el nu?” - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Hansi Flick a spus ce a vorbit cu Rodri înainte să îl schimbe la pauza meciului Barcelona - Aston Villa 3-0 - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Barcelona - Aston Villa 3-0. Lamine Yamal și Raphinha i-au ”răpus” pe englezi - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Galatasaray-Stuttgart 2-0, Șahtior-Sporting 0-1, ACUM, DGS 1,2. Barcelona-Villa, Atletico-Bayern, Feyenoord-Inter, 22:00. Programul complet - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Florin Prunea analizat intrarea portarului care i-a provocat decesul lui De Miguel și a amintit de un român - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Câți ani de închisoare riscă Jesus Owono, după lovitura care a produs moartea lui Jesus de Miguel - Digi SportSurge — Google News · 03 Nov 2026 · RO
- N-a mai suportat: decizia luată de Jesus Owono, după lovitura care i-a produs moartea lui Jesus de Miguel - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Banca Transilvania, Digi şi OMV Petrom, printre cele mai căutate acţiuni pe platforma de tranzacţionare NAGA în primele nouă luni din anZiarul Financiar · 03 Nov 2026 · RO
- UEFA a făcut anunțul, după ce Jesus de Miguel a murit - Digi SportSurge — Google News · 03 Nov 2026 · RO
- UEFA a făcut anunțul, după ce Jesus de Miguel a murit - Digi SportSurge — Google News · 03 Nov 2026 · RO
- "Devastat". Ce se întâmplă cu Jesus Owono, după intrarea care i-a produs decesul lui Jesus de Miguel - Digi SportSurge — Google News · 03 Nov 2026 · RO
- "Devastat". Ce se întâmplă cu Jesus Owono, după intrarea care i-a produs decesul lui Jesus de Miguel - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Ce suspendare riscă Jesus Owono, după lovitura care a dus la moartea lui Jesus de Miguel - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Ce suspendare riscă Jesus Owono, după lovitura care a dus la moartea lui Jesus de Miguel - Digi SportSurge — Google News · 03 Nov 2026 · RO
- Gigi Becali a auzit cât ar costa blana purtată de Sorina Docuz și nu s-a abținut - Digi SportSurge — Google News · 03 Nov 2026 · RO
SEC filings
- Current report31 Aug 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Current report05 Mar 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report04 Feb 2026
- Current report04 Feb 2026Results of operations · Financial statements and exhibits
- Current report30 Dec 2025Material agreement · Financial statements and exhibits
- Proxy statement17 Dec 2025
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / Digi International Inc. · 21 Nov 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Digi International Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Digi International Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.