Digi International Inc.
- Open
- 72.73
- Day high
- 74.45
- Day low
- 72.05
- Prev close
- 71.33
- Volume
- 402K
- Mkt cap
- $2.7B
- P/E (TTM)
- 62.4
- EPS (TTM)
- $1.16
- P/B
- 4.1
- P/S
- 5.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$8.3M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
Digi International Inc. (DGII) is a Technology company listed on NASDAQ. The stock is up 102% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4).
Digi International Inc. (DGII) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DGII earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.58 | $0.62 | +6.9% | $131M | +4.6% |
| Feb 4, 2026 | $0.55 | $0.56 | +1.8% | $122M | -2.1% |
| Nov 12, 2025 | $0.51 | $0.56 | +9.8% | $114M | +0.9% |
| Aug 6, 2025 | $0.51 | $0.53 | +3.9% | $108M | -3.0% |
| Feb 5, 2025 | $0.50 | $0.50 | +0.0% | $104M | -0.2% |
| May 1, 2024 | $0.47 | $0.49 | +4.3% | $108M | -4.4% |
| Jan 31, 2024 | $0.45 | $0.48 | +6.7% | $106M | +0.5% |
| Nov 9, 2023 | $0.48 | $0.52 | +8.3% | $112M | +1.7% |
| Aug 3, 2023 | $0.47 | $0.50 | +6.4% | $112M | +1.4% |
| May 4, 2023 | $0.45 | $0.50 | +11.1% | $111M | +4.0% |
| Feb 2, 2023 | $0.40 | $0.48 | +20.0% | $109M | +6.1% |
| Nov 10, 2022 | $0.42 | $0.45 | +7.1% | $106M | +5.3% |
DGII insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 9, 2026 | Konezny Ronalddirector, officer: PRESIDENT AND CEO | Option | 60,654 | $21.53 |
| Jun 9, 2026 | Konezny Ronalddirector, officer: PRESIDENT AND CEO | Tax | 39,776 | $66.78 |
| Jun 4, 2026 | Loch James J.officer: SR VP, CFO AND TREASURER | Sell | 97,637 | $69.42 |
| Jun 4, 2026 | Loch James J.officer: SR VP, CFO AND TREASURER | Option | 33,697 | $21.53 |
| Jun 4, 2026 | Loch James J.officer: SR VP, CFO AND TREASURER | Sell | 2,363 | $70.31 |
| Jun 4, 2026 | Loch James J.officer: SR VP, CFO AND TREASURER | Option | 38,889 | $17.94 |
| Jun 4, 2026 | Loch James J.officer: SR VP, CFO AND TREASURER | Tax | 67,946 | $69.29 |
| Jun 4, 2026 | Loch James J.officer: SR VP, CFO AND TREASURER | Option | 100,000 | $13.76 |
| Jun 4, 2026 | Loch James J.officer: SR VP, CFO AND TREASURER | Option | 35,456 | $16.75 |
| May 28, 2026 | Freeland James E.officer: VP, Chief Information Officer | Sell | 450 | $68.00 |
| May 14, 2026 | Sampsell David H.officer: VP, CORP. DEV, GC & CORP. SEC. | Sell | 6,376 | $65.11 |
| May 13, 2026 | Schneider Terrence G.officer: VP, SUPPLY CHAIN | Option | 14,182 | $16.75 |
| May 13, 2026 | Schneider Terrence G.officer: VP, SUPPLY CHAIN | Sell | 14,182 | $65.61 |
| May 8, 2026 | Freeland James E.officer: VP, Chief Information Officer | Tax | 700 | $58.85 |
| Feb 12, 2026 | Freeland James E.officer: VP, Chief Information Officer | Sell | 1,355 | $45.84 |
Source: DGII SEC Form 4 filings, latest Jun 9, 2026. For informational purposes only — not investment advice.
See the full DGII insider & 13F page →Digi International Inc. company profile
Overview
Digi International Inc. (NASDAQ:DGII) is a Minnesota-based technology company founded in 1985 that specializes in Internet of Things (IoT) connectivity solutions. The company went public in 1989 and has evolved from a traditional hardware manufacturer into a comprehensive IoT solutions provider. Over its nearly 40-year history, Digi has positioned itself as a leader in mission-critical wireless connectivity, serving industrial customers who require reliable, secure connections for their connected devices and systems. The company has been actively transforming its business model from one-time hardware sales to recurring revenue through software subscriptions and managed services.
Business
Digi International operates in the Industrial Internet of Things (IoT) market, providing connectivity solutions that enable businesses to connect, monitor, and manage their devices remotely. The IoT industry involves connecting physical devices to the internet so they can collect data, communicate with other systems, and be controlled remotely - think of everything from smart thermostats in buildings to sensors monitoring equipment in factories. The company operates through two main business segments: 1. IoT Products & Services segment (approximately 75% of revenue): This division manufactures and sells hardware components that provide wireless connectivity. Key products include cellular routers that create secure internet connections in remote locations, cellular modules that manufacturers embed into their products to add internet connectivity, console servers that allow IT teams to remotely access network equipment, and Digi XBee radio frequency modules for short-range wireless communication. The segment also offers Digi Remote Manager, a cloud-based service that helps customers manage their connected devices from a central dashboard. 2. IoT Solutions segment (approximately 25% of revenue): This division provides complete end-to-end solutions, primarily through SmartSense by Digi, which monitors temperature and environmental conditions for food service, healthcare, and logistics companies. For example, a restaurant chain might use SmartSense to automatically monitor freezer temperatures across all locations and receive alerts if temperatures rise above safe levels. The segment also includes Ventus, which provides wireless connectivity solutions for utilities and energy companies. The company serves diverse industries including healthcare, utilities, transportation, retail, and manufacturing, where reliable connectivity is mission-critical for operations.
Revenue model
Digi International generates revenue through multiple streams, with an increasing focus on recurring revenue models. The company makes money primarily through product sales of hardware devices like routers, modules, and gateways, subscription services for cloud-based device management platforms, and professional services including installation, training, and technical support. The company's paying customers are primarily businesses and organizations that need reliable IoT connectivity, including manufacturers who embed Digi's modules into their products, enterprises managing distributed locations, utilities monitoring infrastructure, and healthcare organizations tracking sensitive equipment. Revenue is also generated through data plan subscriptions for cellular connectivity and enhanced technical support services. Digi has been strategically transitioning from one-time hardware sales to recurring revenue, with Annual Recurring Revenue (ARR) growing from approximately $90 million in 2022 to $123 million in 2025, now representing 29% of total revenue. This shift provides more predictable cash flows and higher customer lifetime value. Factors that could increase margins include successful expansion of software and services attach rates (currently under 50% across the portfolio), growth in higher-margin recurring revenue streams, and economies of scale from increased production volumes. Margin pressures could come from component cost inflation, increased competition in IoT connectivity, potential tariff impacts on manufacturing costs, and the need for continued R&D investment to stay competitive in the rapidly evolving IoT market. The company has diversified its supply chain across multiple geographies to mitigate risks from trade tensions and component shortages.
Competitive moat
Digi International's competitive moat is moderate but strengthening through its transition to recurring revenue and solution-oriented approach. The company benefits from switching costs once customers integrate Digi's modules and software into their systems, as replacing embedded connectivity solutions requires significant engineering effort and recertification processes. This is particularly strong in mission-critical applications where reliability is paramount. The company's technical expertise in industrial-grade IoT connectivity provides some differentiation, especially in harsh environments where consumer-grade solutions fail. Digi's 40-year track record and established relationships with cellular carriers also create barriers for newer entrants. The growing recurring revenue base from cloud services and subscriptions creates additional stickiness, as customers become dependent on Digi's management platforms for their connected device deployments. However, the moat faces challenges from larger technology companies entering the IoT space, including cloud providers like Amazon and Microsoft who offer competing IoT platforms, and semiconductor companies developing more integrated connectivity solutions. The hardware components of Digi's business face commoditization pressure, which is why the company's strategic shift toward software and services is critical for maintaining differentiation. Competition also comes from specialized players in vertical markets and lower-cost alternatives from international manufacturers, particularly for less mission-critical applications.
Risks & safety
The company demonstrates solid financial stability with improving debt management and strong cash generation: • Debt and Cash Position: Net debt reduced to $45 million as of Q2 2025, down from over $100 million. Company expects to be net cash positive by end of fiscal 2025. Current cash and short-term investments of $26 million provide adequate liquidity. • Cash Flow Generation: Strong free cash flow of $26 million in Q2 2025, with free cash flow yield of approximately 9%. Operating cash flow has been consistently positive, providing financial flexibility. • Valuation Metrics: Trading at P/E ratio of 24.5x, EV/EBITDA of 12.4x. Current ratio of 1.57x indicates adequate short-term liquidity coverage. • Other Considerations: Low debt-to-equity ratio of 0.14, indicating conservative capital structure. However, the company operates in a competitive technology sector requiring ongoing R&D investment, and faces potential margin pressure from component costs and competition.
Recent development
Over the past few years, Digi International has undergone significant strategic transformation focused on shifting from a hardware-centric to a software and services-oriented business model. The company has been actively increasing its Annual Recurring Revenue (ARR), which has grown from approximately $90 million in 2022 to $123 million in 2025, now representing 29% of total revenue. Key strategic initiatives include expanding the Ventus subscription model to the cellular router business, offering customers flexible payment terms and ongoing services rather than one-time purchases. The company has been improving software attach rates across its product portfolio, currently achieving under 50% attachment but targeting higher levels through complete solution offerings. Digi has also focused on supply chain diversification, significantly reducing its China exposure to single-digit percentages while expanding manufacturing capabilities in Southeast Asia, Mexico, and maintaining flexibility to move production to US facilities if needed. This diversification strategy prepares the company for potential tariff impacts and geopolitical uncertainties. The company has been actively pursuing acquisition opportunities to accelerate growth, having successfully integrated previous acquisitions like Ventus and exploring additional targets that could materially impact business outcomes. Recent partnerships, such as the collaboration with Atsign for enhanced IoT security options, demonstrate the company's commitment to expanding its solution capabilities beyond basic connectivity.
DGII company profile · for informational purposes only — not investment advice.
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