Digi International Inc (NASDAQ: DGII) is an industrial IoT company that designs and sells hardware, software, and managed services for connecting devices to networks. It makes money through two segments: IoT Products & Services, which sells cellular routers, cellular modules, console servers, and device management platform services to OEM, enterprise, and government customers; and IoT Solutions, which delivers recurring subscription-based services through SmartSense by Digi (wireless temperature and condition monitoring, task management) and Ventus (Managed Network-as-a-Service). In FY2025 (year ended September 30, 2025), total revenue was $430.2 million, with IoT Products & Services contributing $317.9 million (73.9%) and IoT Solutions contributing $112.3 million (26.1%). Gross profit margin reached 62.9% in FY2025, up 400 basis points from FY2024, driven by favorable product mix and a higher proportion of recurring revenue. Operating income was $56.3 million (13.1% margin) in FY2025. The company acquired Jolt Software, Inc. in Q4 FY2025 to expand SmartSense's task and workforce management offerings.

Revenue model

Dual revenue streams: hardware product sales (cellular routers, modules, console servers) sold to OEMs and enterprise customers, plus recurring subscription-based services from SmartSense by Digi (condition monitoring, task management) and Ventus MNaaS. Recurring revenue carries higher gross margins and grew as a share of total revenue in FY2025.

Products and services

IoT Products & Services: cellular routers, cellular modules (LTE, LTE Advanced Pro, 5G), console servers, enterprise and industrial routers, device management platform services, professional services. IoT Solutions: SmartSense by Digi wireless temperature and condition monitoring, employee task management, label printing, Jolt Software workforce and task management (acquired Q4 FY2025), Ventus Managed Network-as-a-Service (MNaaS).

Customers and end markets

OEM customers embedding cellular connectivity into products; enterprise and government customers requiring wireless connectivity; vertical markets for SmartSense including food service, healthcare (pharmacies and hospitals), and supply chain; agricultural, energy, medical, lighting, digital signage, gaming, electric vehicle charging, and transportation markets for cellular hardware products.

Value-chain role

Hardware designer and manufacturer of cellular connectivity products sold to OEMs and enterprise customers; software and platform provider for device management; managed service provider for network connectivity (MNaaS via Ventus) and condition monitoring (SmartSense by Digi).

Source: SEC 10-K, filed 2025-11-21

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