Digi International Inc
Digi International Inc. builds mission-critical IoT connectivity hardware, software and managed services for enterprises that need secure, reliable device communications. Its portfolio spans embedded modules, industrial routers, console servers, device-management software, and subscription-based monitoring solutions through SmartSense by Digi, Jolt and Ventus.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueEmbedded modules, routers, console servers and infrastructure management devices sold to OEM, enterprise and government customers.
Platform services, professional services, data plans and enhanced support that help customers deploy and manage connected devices.
Sensor, gateway and cloud-based monitoring for temperature, condition and task compliance in food service, healthcare and logistics.
Managed WAN connectivity and cellular/fixed-line network services for distributed enterprise locations.
Software that tracks employee tasks and operational compliance, especially in food service and healthcare settings.
Products
Reported · share of revenue- Products68.9 %
- Services31.1 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Digi sells to OEMs, enterprise customers and government users that need secure connectivity for devices, assets and remote sites. Its IoT Solutions customers are concentrated in food service, healthcare, transportation/logistics, banking, retail, gaming and hospitality, where uptime, compliance and monitoring are critical. A large share of product revenue is routed through distributors, systems integrators and VARs, while solutions are sold more directly through Digi's own sales organization.
Buy embedded modules and wireless connectivity products to integrate into their own devices and systems.
Buy routers, console servers, device management and technical services for secure networked operations.
Buy SmartSense and Jolt to monitor temperature, compliance tasks and operational workflows.
Buy Ventus MNaaS to simplify WAN connectivity across many locations and reduce network complexity.
Resell Digi products and extend market reach, especially for IoT Products & Services.
Strategy
Digi is shifting its mix toward software, subscriptions and managed services to increase recurring revenue and improve margin quality. It is also expanding its solution set through acquisitions such as Ventus and Jolt, while using channel partners and strategic alliances to broaden reach in connected infrastructure markets.
Recurring subscriptions and cloud services provide more predictable and higher-margin revenue than one-time hardware sales.
Acquired capabilities help Digi sell more complete end-to-end IoT solutions and deepen customer relationships.
Distributors, VARs, carriers and technology partners extend market access and support complex deployments.
Geography
Q1/2026Digi is headquartered in Hopkins, Minnesota and sells globally, with a broad international footprint across enterprise customers, distributors and carrier partners. The filings do not provide a country revenue table in the excerpt, but management highlights global operations, international trade exposure and worldwide carrier relationships as important to the business. Geography matters because the company relies on global supply chains, contract manufacturers and wireless network partners, making it sensitive to tariffs, trade policy and regional disruptions.
Share of the revenue the company reports by geography.
Risks
Digi faces execution risk as it transitions toward recurring software and managed services while integrating acquisitions and maintaining product reliability. It is also exposed to cybersecurity threats, component shortages, tariffs and wireless network dependence, all of which can disrupt supply, raise costs or damage customer trust.
- International tariffs and trade policy changesImpact: HighLikelihood: High
The company relies on global sourcing and contract manufacturing, so tariffs can increase input costs and disrupt supply chains.
Exposure: Global supply chain
- Cybersecurity vulnerabilities in products and internal systemsImpact: HighLikelihood: Medium
IoT devices and software operate in connected environments and can be targeted by bad actors, creating cost, liability and reputation risk.
Exposure - Dependence on third-party wireless carriersImpact: MediumLikelihood: Medium
Connectivity products and managed services rely on carrier networks for capacity, reliability and security.
Exposure: Cellular and WAN services
- Longer-than-expected sales cyclesImpact: MediumLikelihood: Medium
Macro uncertainty can delay enterprise buying decisions and push out contract wins and revenue recognition timing.
Exposure: Enterprise and project-based sales
- Acquisition integration and return riskImpact: MediumLikelihood: Medium
SmartSense, Ventus and Jolt must be integrated successfully to realize expected growth and profitability benefits.
Exposure: IoT Solutions segment
Accounting
Judgemental itemsDigi sells both point-in-time products and over-time services, so revenue timing depends on contract terms and delivery obligations.
Impact: Affects quarterly revenue mix, deferred revenue and gross margin
Recent acquisitions such as Ventus and Jolt require valuation of acquired intangibles and goodwill.
Impact: Affects amortization expense and impairment risk
If acquired businesses underperform, carrying values may need to be written down.
Impact: Could create non-cash charges and reduce reported earnings
Recurring revenue metrics need to align with recognized revenue and contract liabilities.
Impact: Important for assessing growth quality and future revenue visibility
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Last updated: 24/09/2026