Digi International Inc.

digi.com

What Do They Do?

Sells wired and wireless equipment that connects devices, plus services to manage devices and monitor conditions, to equipment makers, businesses and government agencies.

How Do They Make Money?

Customers pay for wired and wireless hardware when it ships; they also pay for monitoring and management subscriptions, while platform-service charges depend on the number of devices managed or monitored each month.

revenue

Segment	Share	Revenue	How money arrives
Product Sold outright	69% FY2022: 75%		Sold outright
Service Recurring	31% FY2022: 25%		Recurring

Who Are Their Customers?

OEMs, enterprise and government customers buy connectivity equipment and related services; product sales often go through distributors, systems integrators and resellers, while IoT Solutions generally sells through Digi’s dedicated sales team.

Customers above 10% of revenue, FY2025

of revenue from one customer

FY2023: no customer at 10% or more of revenue

Do Revenues Turn Into Profits?

Yes. It kept 9 cents of every revenue dollar as net income in FY2025 and turned 24 cents into free cash flow.

Operating income, FY2025

13% of revenue

▲ +17% vs FY2024 ($48.1M, 11%)

Net income, FY2025

9% of revenue

▲ +81% vs FY2024 ($22.5M, 5%)

Free cash flow, FY2025

24% of revenue

▲ +30% vs FY2024 ($80.9M, 19%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q3 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +29%; vs $107.5M in Q3 FY2025
Net income: ▲ +54%; vs $10.2M in Q3 FY2025

Product share of revenue from contract with customer, excluding assessed tax vs 69.0% in Q3 FY2025

Aug 5, 2026 Digi raised its full-year outlook The release says it raised its outlook and cites confidence in achieving $200 million in both ARR and adjusted EBITDA within its targeted time horizon.

Growing. Revenue grew 39% in 4 years, from $308.6M in FY2021 to $430.2M in FY2025, about 9% a year.

More subscription-based offerings Digi had begun emphasizing subscription-based solutions for its product lines; the latest report describes greater emphasis on subscriptions and hardware bundled with remote management services.

Jolt added software offerings The latest report says Digi acquired Jolt, adding workforce management and labeling tools alongside SmartSense’s monitoring and employee task-management services.

Revenue over time

Product Service

$500M$250M$0

FY2021 FY2022 FY2023 FY2024 FY2025

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